2021 ANNUAL REPORT

Citi is working with Gavi, the Vaccine Alliance, as the financial advisor for
its COVAX Facility, which is supporting the fair and equitable distribution
of COVID-19 vaccines around the world.
Citi’s Value Proposition

A Mission of Enabling Growth

and Economic Progress
What You Can Expect From Us and What We Expect From Ourselves

Citi’s mission is to serve as a trusted partner to our clients by responsibly

providing financial services that enable growth and economic progress. Our core
activities are safeguarding assets, lending money, making payments and accessing
the capital markets on behalf of our clients. We have 200 years of experience
helping our clients meet the world’s toughest challenges and embrace its greatest
opportunities. We are Citi, the global bank — an institution connecting millions of
people across hundreds of countries and cities.

We protect people’s savings and help them make the purchases — from everyday
transactions to buying a home — that improve the quality of their lives. We advise
people on how to invest for future needs, such as their children’s education and
their own retirement, and help them buy securities such as stocks and bonds.

We work with companies to optimize their daily operations, whether they need
working capital, to make payroll or export their goods overseas. By lending to
companies large and small, we help them grow, creating jobs and real economic
value at home and in communities around the world. We provide financing and
support to governments at all levels, so they can build sustainable infrastructure,
such as housing, transportation, schools and other vital public works.

These capabilities create an obligation to act responsibly, do everything possible

to create the best outcomes, and prudently manage risk. If we fall short, we will
take decisive action and learn from our experience.

We strive to earn and maintain the public’s trust by constantly adhering to the
highest ethical standards. We ask our colleagues to ensure that their decisions
pass three tests: they are in our clients’ interests, create economic value, and
are always systemically responsible. When we do these things well, we make a
positive financial and social impact in the communities we serve and show what
a global bank can do.

1
 Principles Guiding We continued to build out our leading custody platform,
winning key mandates to provide post-trade services for

Citi’s Strategic Refresh some of our financial institution clients such as BlackRock.
Citi Velocity, our digital platform for institutional clients,
attracted about 200,000 unique client users in 2021, a
64% increase over 2020 and a 138% increase compared
Being clinical in assessing which with 2019, before the pandemic.
businesses Citi can retain or secure
For our consumer franchise, the picture was more mixed.
leading market positions. Our wealth businesses continued their momentum. In our
U.S. Retail and Cards businesses, government stimulus
Being focused by directing resources programs helped consumers accumulate additional
savings, which translated into elevated payment rates
to higher-returning businesses and
and, consequently, a 5% decrease in loans and a 9%
away from the others. decrease in revenues.
But other key drivers were more encouraging, including higher
Ensuring Citi’s businesses are purchase sales across our cards products and a pickup in
connected and generate synergies. cards loans at the end of the year. Customers clearly were
reaching for their Citi card over other options in their wallet,
Simplifying Citi to unlock value a testament to our dynamic portfolio of products, which we
further strengthened with the launch of the Citi Custom Cash
for shareholders. card and renewals of key retail partnerships such as AT&T,
Macy’s and Tractor Supply Company.

“We are confident we have put Citi on the right path to improve
Jane Fraser
returns over the long term and deliver the full benefits of our firm
Chief Executive Officer Letter to Shareholders to all our stakeholders.”

2021 was a year when Citi reaffirmed its vital place in the to the toughest of problems. I am so proud of how our people Our institutional franchise had a very active year, advising In 2021, we also benefited from double-digit growth in
world. As COVID-19 barreled along an unpredictable path, have continued to step up and deliver for our clients and and underwriting many significant deals. That included the deposits across our consumer franchise in the U.S. Our
Citi continued to help clients and customers navigate the customers despite the challenges they have faced at home largest spin-off and second-largest M&A transaction of 2021 strategy to complement the great service we provide in our
impacts of economic lockdowns, inflationary pressures and and in their personal lives. and successful capital raises for the IPOs of a number of U.S. retail branches with best-in-class digital tools continued
supply chain disruptions and access the short- and long-term high-growth companies, such as the dating app Bumble and to pay off: We’ve received $20 billion in digital deposits, and
liquidity they’ve needed to manage through the pandemic. Stability in unstable times the game developer Krafton. We also served as joint global more than two-thirds have come from customers outside of
From an economic perspective, 2021 was a less volatile year, coordinator on the largest overnight trade on record, and we our branch footprint, with about half of those deposits from
At the same time, we have seen more permanent shifts
with a normalization of many but not all of our key business were an active bookrunner for the year’s biggest U.S. dollar our cardholders who did not previously have a retail
across our industry. Companies are going global at a record
drivers and the release of much of the loan-loss reserves corporate bond offering, which was also the sixth-largest U.S. relationship with us.
pace. Digitization has made scale and agility a competitive
that we had set aside during the pandemic. That enabled us dollar transaction of all time.
necessity. The line dividing business and politics has all
to generate net income of $22 billion on revenues of $71.9 Realizing our full potential
but disappeared, creating an entirely new paradigm for Despite the headwinds of the low rate environment, our
billion, with a Return on Tangible Common Equity (RoTCE) In March 2022, one year after I assumed the role of CEO, we
multinationals. And companies are responding to calls from Treasury & Trade Solutions business maintained strong
of 13.4%. Excluding those reserve releases, our net income held our first Investor Day since 2017. It was an opportunity
all stakeholder groups to become more purpose driven and momentum. We saw robust client engagement and digital
was $14.9 billion, and we had an RoTCE of 8.9%1. to update our investors after a year of refreshing our
take a leading role in sustainable practices. adoption, including a 96% year-over-year increase in digital
strategy to focus our resources and energies on a compelling
We ended 2021 with a solid balance sheet and a liquidity account openings and a 62% increase in user engagement
In my conversations with clients and world leaders, they tell me mix of businesses that can drive growth and higher returns.
coverage ratio of 115%. Our Common Equity Tier 1 capital through our CitiDirect mobile banking platform. As transaction
this is the most complex landscape they can remember – but Going forward, we will be a firm focused on five core units –
ratio at year-end was 12.2% as we prepared to adopt a new flows across CitiConnect digital channels grew by 38%
this is precisely the kind of environment in which Citi shines. Services, Markets, Banking, U.S. Personal Banking and Global
capital rule, the Standardized Approach for Counterparty compared with the prior year, we expanded our instant
For over 200 years, our global network has demonstrated the Wealth Management – with strong connectivity among them
Credit Risk (SA-CCR). During the year, we were able to return payments capability to 28 markets, now the largest footprint
flexibility and resilience to adapt to the times. And with our to bring the full power of Citi to our clients.
nearly $12 billion of capital to common shareholders. in the industry.
unique global perspective, our on-the-ground knowledge, and
our empathy and expertise, we are able to develop solutions
1
RoTCE represents annualized net income available to common shareholders as a percentage of average tangible common equity
and is a non-GAAP financial measure. For a reconciliation to reported results, see page 44 of Citi’s 2021 Annual Report on Form 10-K.
In addition, net income excluding reserve releases is a non-GAAP financial measure.
2 3
 Jane Fraser became CEO Established a new, hybrid
and set a path for Citi model for the future of work
to win in the digital world and welcomed nearly 47,000
new colleagues

Created Global Wealth Management

to capitalize on the extraordinary
Won two key
rise in wealth creation custodial mandates
including the management
of nearly $1 trillion in ETFs
Launched Citi Self Invest,
a no-fee digital app that expands
access to wealth management

BUILDING
Expanded the industry’s largest
instant payment network
now present in 28 markets
Streamlined Citi’s

A BANK
consumer presence
to focus on businesses
with higher-return FOR THE Facilitated landmark

DIGITAL WORLD
opportunities
deals of 2021
including the largest merger
of two Asian internet
Launched Citi companies to date
Custom Cash card
to meet evolving needs
of the digital consumer
Served as the active
bookrunner for the largest
Reached $20 billion USD transaction of 2021
in digital deposits which was also the sixth-largest
USD transaction of all time
in the U.S. Retail bank

Submitted our Transformation Grew Prime Finance

plans to regulators balances by 23%
to create a best-in-class risk outperforming the market
and controls environment index by 3%

4 5
 A Snapshot of Citi’s 2021 Financial Performance
Our vision for Citi is to be the pre-eminent banking partner with our clients and guide the industry forward. Earlier this
for institutions with cross-border needs, a global leader in year, we released our initial plan, setting 2030 targets for our
wealth management and a valued personal bank in our home energy and power loan portfolios.
market. A key part of our strategy is investing in the Services
Our commitment to societal progress has also led us to take
businesses that are the heart of our global network and
generate strong, fee-based returns. Through our Commercial Key Highlights across on the challenge of economic inclusion. Since launching our
Key Financial Metrics Action for Racial Equity initiative in 2020, we have invested
Bank, we will expand our work with mid-sized companies who Our Businesses (YoY) more than $1 billion to help close the racial wealth gap in
have aspirations to go global.
the U.S. That includes investing in Black-founded companies
Another priority is our ambition in wealth management. INVESTMENT SECURITIES through our Citi Impact Fund, investing in minority
By combining our Private Bank and consumer wealth BANKING SERVICES depository institutions and inviting them to participate
businesses, we are creating a single, integrated platform REVENUE NET INCOME in revenue-generation opportunities alongside Citi, and
REVENUES REVENUES
to serve affluent consumers up through the ultra-high net
worth segment. This also allows us to target clients in the $71.9 billion $22 billion  30%  6%
committing equity to Black real estate developers to preserve
affordable and workforce housing.
middle of the wealth continuum, which to date has been
Across the globe, we have continued maximizing the impact
largely untapped territory for us despite already having
we can make through financial innovation, particularly in our
relationships with them in the Commercial Bank.
most underserved communities. Since 2007, we have helped
As we focus our resources in a more targeted way, we also EPS ROTCE EQUITIES MARKETS REVENUES 3.7 million women around the world launch or grow their

$10.14 13.4%2  25%

have made some hard decisions about which businesses businesses. In 2021, we issued a first-of-its-kind $1 billion
no longer fit into our vision for Citi. We have announced social finance bond to increase access to essential services in
our intention to exit 14 of our consumer businesses in Asia, emerging markets – part of a goal we set last year to expand
Europe and Mexico where there was not clear connectivity access to housing, education and healthcare for 15 million
to the rest of our franchise. In every case, we are working CET1 CAPITAL LIQUIDITY TREASURY & TRADE SOLUTIONS low-income households, including 10 million women. Our
to reach solutions that will provide optimal results for our RATIO COVERAGE RATIO AVERAGE TRADE LOANS recently announced plan to eliminate overdraft fee charges
people, clients and shareholders. Notwithstanding these in the U.S. will also increase financial inclusion.
decisions, Citi will continue to serve clients and invest in
these markets through our institutional franchise and our
12.2%3 115%  5% All told, we have committed $1 trillion to sustainable financing
by 2030, which includes $500 billion toward environmental
Global Wealth Management business.
activities and $500 billion toward social activities. And every
AVERAGE U.S.
For our strategy to unlock the greatest possible value, we GREW OUR TANGIBLE BOOK VALUE U.S. CONSUMER CREDIT CARD day, we are seeing how our ESG agenda is such a strong
know we need an infrastructure that is scaled and agile and PER SHARE BY DEPOSITS SPEND VOLUME selling point for Citi in the perennial battle for talent.
delivers a great user experience. The Consent Orders issued in
2020 by two of our U.S. regulators – the Federal Reserve Board
(FRB) and Office of the Comptroller of the Currency (OCC) –
7%  17%  21%
Ensuring we have the right talent is critically important to
our firm’s success. Over the past year, we have attracted
some tremendous new leaders to Citi and promoted our
underscored how we have underinvested in some of those
highest-performing leaders within the firm to new roles.
areas for too long. In 2021, we launched an effort to address RETURNED NEARLY PRIVATE U.S. INVESTMENT I’m also proud that we recently met and exceeded goals to
those deficiencies and simplify and modernize our operating
BANK ASSETS UNDER
model for the digital age. This work is so fundamental and
consequential in nature that we call it our Transformation.
$12 billion REVENUES MANAGEMENT
increase the representation of women and Black colleagues
in our senior ranks – and we did so by embedding these goals
in our business strategy, strengthening our talent pipelines,
As part of our Transformation, we are enhancing our
IN CAPITAL TO OUR
COMMON SHAREHOLDERS  6%4  8% evolving our recruitment and hiring, promoting internally and
risk and controls environment to be more intuitive and making Citi a more attractive place to work. In other words,
automated. We are also improving how we organize and we lifted everyone up.
leverage the incredible amount of data we have as a global
As we look to the horizon, the stakes could not be higher –
bank. Data can be a competitive advantage for us, helping In 2021, we submitted our plan to the FRB and OCC. From the A bank with a brain and a soul
beginning of this work, we have been staying close to our the world is only becoming more complex and more
us manage risk more efficiently, comply with regulations, Our environmental, social and governance (ESG) agenda
regulators and keeping them updated on our progress. But competitive. But at Citi, we are determined to seize this
deliver with excellence for our clients, identify revenue builds on decades of leadership and is a reflection of the
it’s also important to note that our Transformation goes far moment. We are excited about the work we have done over
opportunities and achieve efficiencies. special responsibility we feel as a global bank to help solve
beyond remediation. This is about modernizing our systems the past year to focus our strategy on where we can win.
Ensuring we have a culture characterized by excellence many of society’s toughest challenges, such as the impending And we are confident we have put Citi on the right path to
and structures so that we can better manage the speeds and
underpins the success of our Transformation. We have climate crisis. On my first day as CEO, we committed Citi to improve returns over the long term and deliver the full
complexities of the digital world. This is about putting Citi in
updated our leadership principles and adjusted our achieving net zero greenhouse gas emissions by 2050. Over benefits of our firm to all our stakeholders.
the position to compete and win.
performance rating system, part of an effort to raise the past year, we have been hard at work mapping out how
Taking into account our growth plan, the investments we we are going to get there, rolling up our sleeves to partner Sincerely,
expectations and to increase accountability for how our
people should approach their work. And by breaking down are making in our businesses and efficiencies that will come
silos and deepening the sense of ownership that our people out of our work, we believe we can increase shareholder
feel for the firm, we are building a culture that’s focused on value and achieve an RoTCE of 11%-12% in the next three to
delivering the best outcomes for all our stakeholders. five years. Over the longer term, I believe that our strategy 2
See page 11 of Citi’s 2021 Form 10-K.
will lead to a higher-quality earnings mix, and we’ll further 
See
3
page 11 of Citi’s 2021 Form 10-K. Jane Fraser
increase our returns as a result. 4
See page 16 of Citi’s 2021 Form 10-K. Chief Executive Officer, Citigroup Inc.
6 7
Through Bridge Built by Citi, Citi aims to
expand access to capital for small and
medium-sized businesses in the U.S. while
widening the customer base for lenders,
EMBEDDING ESG ACROSS OUR BUSINESSES
helping to democratize the loan process.
Served as the financial advisor to
Unveiled initial Gavi’s COVAX FACILITY,
plans to achieve which is working on the equitable

02050
EMISSIONS BY distribution of COVID-19 vaccines

NET
Successfully met and exceeded 3-year goals
to increase representation of Black and women
talent at the firm

Committed $1 trillion
to sustainable finance
by 2030 ($500 billion for
environmental activities and
$500 billion for social activities)

Issued a first-of-its-kind Named leading Granted $275 million

affordable housing
$1 billion social lender in the U.S. to date to support the
finance bond for 11th consecutive Citi Foundation’s
to increase access to essential year and financed
services in emerging markets $5.64 billion Pathways to
Invested over $1 billion
for affordable housing
units across the U.S. Progress initiative
in our Action
for in 2021 to improve economic
Racial Equity opportunities for
initiative to help close the
racial wealth gap in the U.S. underserved youth
Expanded portfolio of the Named one of the top
$200 million
Citi Impact Fund
to provide capital for “double-
15 most responsible
and purpose-driven
companies by JUST Capital
bottom-line” companies

Co-founded the Supported 3.7 million

Net Zero Banking
Alliance to help women entrepreneurs
guide the industry globally to date in launching
to net zero and growing their businesses
8 9
 FO R T H E LOV E O F

changing
perceptions.
for the love of progress

See how Team Citi is making history

and helping change perceptions at
citi.com/ParaSport
© 2022 Citigroup Inc. Citi and Citi with Arc Design are registered service marks of Citigroup Inc.
 UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-K
(Mark One)
  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2021

OR

 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from     to

Commission file number 1-9924

Citigroup Inc.
(Exact name of registrant as specified in its charter)

Delaware 52-1568099
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
388 Greenwich Street, New York NY 10013
(Address of principal executive offices) (Zip code)
(212) 559-1000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934 formatted in Inline XBRL: See Exhibit 99.01
Securities registered pursuant to Section 12(g) of the Act: none
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.  Yes   No 
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.  Yes   No 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.  Yes   No 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405
of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit
such files).  Yes   No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company,
or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging
growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer   Accelerated filer   Non-accelerated filer  
Smaller reporting company  
Emerging growth company  
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any
new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  Yes  
Indicate by check mark whether the Registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal
control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that
prepared or issued its audit report. 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).  Yes   No 
The aggregate market value of Citigroup Inc. common stock held by non-affiliates of Citigroup Inc. on June 30, 2021 was approximately $143.2 billion.
Number of shares of Citigroup Inc. common stock outstanding on January 31, 2022: 1,980,894,613
Documents Incorporated by Reference: Portions of the registrant’s proxy statement for the annual meeting of stockholders scheduled to be held on
April 26, 2022 are incorporated by reference in this Form 10-K in response to Items 10, 11, 12, 13 and 14 of Part III.
Available on the web at www.citigroup.com
FORM 10-K CROSS-REFERENCE INDEX

Item Number Page

Part I Part III

1. Business 4–26, 122–128, 10. Directors, Executive Officers and

131, 159, 309–310 Corporate Governance 313–315*
1A. Risk Factors 43–56 11. Executive Compensation **
1B. Unresolved Staff Comments Not Applicable 12. Security Ownership of Certain
Beneficial Owners and Management
2. Properties Not Applicable and Related Stockholder Matters ***
3. Legal Proceedings—See Note 27 13. Certain Relationships and Related
to the Consolidated Transactions, and Director
Financial Statements 290–296 Independence ****
4. Mine Safety Disclosures Not Applicable 14. Principal Accountant Fees and
Services *****
Part II
Part IV
5. Market for Registrant’s Common
Equity, Related Stockholder Matters 15. Exhibit and Financial Statement Schedules
and Issuer Purchases of Equity
Securities 140–141, * For additional information regarding Citigroup’s Directors, see “Corporate Governance” and
“Proposal 1: Election of Directors” in the definitive Proxy Statement for Citigroup’s Annual
165–167, 311–312 Meeting of Stockholders scheduled to be held on April 26, 2022, to be filed with the SEC
(the Proxy Statement), incorporated herein by reference.
6. [Reserved] ** See “Compensation Discussion and Analysis,” “The Personnel and Compensation Committee
Report,” and “2021 Summary Compensation Table and Compensation Information” and
7. Management’s Discussion and “CEO Pay Ratio” in the Proxy Statement, incorporated herein by reference.
*** See “About the Annual Meeting,” “Stock Ownership,” and “Equity Compensation Plan
Analysis of Financial Condition and Information” in the Proxy Statement, incorporated herein by reference.
Results of Operations 7–26, 64–121 **** See “Corporate Governance—Director Independence,” “—Certain Transactions and
Relationships, Compensation Committee Interlocks and Insider Participation” and
7A. Quantitative and Qualitative “—Indebtedness” in the Proxy Statement, incorporated herein by reference.
***** See “Proposal 2: Ratification of Selection of Independent Registered Public Accountants” in
Disclosures About Market Risk 64–121, 160–164, the Proxy Statement, incorporated herein by reference.
184–224, 230–281
8. Financial Statements and
Supplementary Data 136–308
9. Changes in and Disagreements with
Accountants on Accounting and
Financial Disclosure Not Applicable
9A. Controls and Procedures 129–130
9B. Other Information Not Applicable
9C. Disclosure Regarding
Foreign Jurisdictions that
Prevent Inspections Not Applicable

2
CITIGROUP’S 2021 ANNUAL REPORT ON FORM 10-K

OVERVIEW 4 DISCLOSURE CONTROLS AND PROCEDURES 129

Citigroup Segments 5 MANAGEMENT’S ANNUAL REPORT ON
Strategic Refresh 6 INTERNAL CONTROL OVER
MANAGEMENT’S DISCUSSION AND ANALYSIS FINANCIAL REPORTING 130
OF FINANCIAL CONDITION AND RESULTS OF FORWARD-LOOKING STATEMENTS 131
OPERATIONS 7
REPORT OF INDEPENDENT REGISTERED
Executive Summary 7
PUBLIC ACCOUNTING FIRM 132
Citi’s Consent Order Compliance 9
Summary of Selected Financial Data 10 FINANCIAL STATEMENTS AND NOTES
TABLE OF CONTENTS 135
SEGMENT AND BUSINESS—INCOME (LOSS)
AND REVENUES 12 CONSOLIDATED FINANCIAL STATEMENTS 136
SEGMENT BALANCE SHEET 13 NOTES TO CONSOLIDATED
Institutional Clients Group 14 FINANCIAL STATEMENTS 144
Global Consumer Banking 18 FINANCIAL DATA SUPPLEMENT 308
North America GCB 20 SUPERVISION, REGULATION AND OTHER 309
Latin America GCB 22
CORPORATE INFORMATION 313
Asia GCB 24 313
Executive Officers
Corporate/Other 26 314
Citigroup Board of Directors
CAPITAL RESOURCES 27
GLOSSARY OF TERMS AND ACRONYMS 316
RISK FACTORS 43
SUSTAINABILITY AND OTHER ESG MATTERS 57
HUMAN CAPITAL RESOURCES AND
MANAGEMENT 59
Managing Global Risk Table of Contents 63
MANAGING GLOBAL RISK 64
SIGNIFICANT ACCOUNTING POLICIES AND
SIGNIFICANT ESTIMATES 122

3
OVERVIEW
Citigroup’s history dates back to the founding of the City Bank of New York Additional Information
in 1812. Additional information about Citigroup is available on Citi’s website at
Citigroup is a global diversified financial services holding company whose www.citigroup.com. Citigroup’s recent annual reports on Form 10-K, quarterly
businesses provide consumers, corporations, governments and institutions reports on Form 10-Q and proxy statements, as well as other filings with
with a broad, yet focused, range of financial products and services, including the U.S. Securities and Exchange Commission (SEC), are available free of
consumer banking and credit, corporate and investment banking, securities charge through Citi’s website by clicking on the “Investors” tab and selecting
brokerage, trade and securities services and wealth management. Citi has “SEC Filings,” then “Citigroup Inc.” The SEC’s website also contains current
approximately 200 million customer accounts and does business in more reports on Form 8-K and other information regarding Citi at www.sec.gov.
than 160 countries and jurisdictions. For a discussion of 2020 versus 2019 results of operations of ICG, GCB in
At December 31, 2021, Citi had approximately 223,400 full-time North America, Latin America and Asia, and Corporate/Other, see each
employees, compared to approximately 210,000 full-time employees at respective business’s results of operations in Citi’s 2020 Annual Report on
December 31, 2020. For additional information, see “Human Capital Form 10-K.
Resources and Management” below. Certain reclassifications have been made to the prior periods’ financial
Throughout this report, “Citigroup,” “Citi” and “the Company” refer to statements and disclosures to conform to the current period’s presentation.
Citigroup Inc. and its consolidated subsidiaries.
For a list of terms and acronyms used in this Annual Report on Form 10-K
and other Citigroup presentations, see “Glossary of Terms and Acronyms” at Please see “Risk Factors” below for a discussion of material
the end of this report. risks and uncertainties that could impact Citi’s businesses,
results of operations and financial condition.

4
As of December 31, 2021, Citigroup was managed pursuant to two operating segments—Institutional Clients Group and Global Consumer Banking—with
the remaining operations in Corporate/Other. (For information on Citi’s planned revision to its reporting structure effective for the first quarter of 2022, see
“Strategic Refresh—Market Exits and Planned Revision to Reporting Structure” below.)
For a further description of the operating segments and the products and services they provide, see “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” and Note 3 to the Consolidated Financial Statements.

Citigroup Operating Segments

Institutional Global
Clients Group Consumer Banking
(ICG) (GCB)

• Banking • North America

- Investment banking • Latin America(1)
- Treasury and trade solutions • Asia(2)
- Corporate lending
- Private bank Consisting of:
• Retail banking and wealth
• Markets and securities services
management, including
- Fixed income markets
- Residential real estate
- Equity markets
- Small business banking
- Securities services
• Branded cards in all regions
• Retail services in North America

Corporate/Other

• Corporate Treasury
• Operations and technology
• Global staff functions and other corporate expenses
• Legacy non-core assets:
- Consumer loans
- Certain portfolios of securities, loans and other assets
• Discontinued operations

The following are the four regions in which Citigroup operates. The regional results are fully reflected in the segment and Corporate/Other results above.

Citigroup Regions(3)

Europe,
North Middle East Latin
Asia
America and Africa America
(EMEA)

(1) Latin America GCB consists of Citi’s consumer banking business in Mexico.
(2) Asia GCB includes the results of operations of GCB activities in certain EMEA countries for all periods presented.
(3) North America includes the U.S., Canada and Puerto Rico, Latin America includes Mexico and Asia includes Japan.

5
Strategic Refresh—Market Exits and Planned In conjunction with the strategic refresh, in 2021 Citi announced that it
Revision to Reporting Structure will focus its consumer banking franchises in Asia and EMEA on four wealth
As part of its strategic refresh, Citi is making management reporting changes centers: Singapore, Hong Kong, the United Arab Emirates (UAE) and London.
to align with its vision and strategy, including to assist Citi in decisions about As a result, Citi is pursuing exits of its consumer franchises in the remaining
resources and capital allocation and to assess business performance. In the 13 markets across these two regions.
first quarter of 2022, Citi will revise its financial reporting structure to align In 2021 and early 2022, Citi announced sale agreements for or exit of
with these management reporting changes to enable investors and others to a majority of the 13 markets (for additional information, see “Executive
better understand the performance of Citi’s businesses (see the table below for Summary” and “Asia GCB” below). ICG will continue to serve clients,
additional information on the revised financial reporting structure): including its commercial banking clients, in all of these markets.
In addition, in January 2022, Citi announced that it intends to exit
• First, Citi is creating a Personal Banking and Wealth Management the consumer, small business and middle-market banking operations
segment. It will consist of two distinct reporting units: U.S. Personal of Citibanamex. The businesses in the intended exit include the Mexico
Banking businesses and a Global Wealth Management business, which consumer and small business banking operations, reported as part of Citi’s
will include the private bank. GCB segment, as well as the Mexico middle-market banking business,
• Second, with respect to Institutional Clients Group (ICG), Citi will begin reported in Citi’s ICG segment. These operations represent the entirety
reporting under three reporting units: Services, Banking and Markets. of the Latin America GCB unit. Citi will continue to operate a locally
Services will include treasury and trade solutions and securities services, licensed banking business in Mexico through its global ICG (for additional
reflecting the importance of these businesses to Citi’s future. information, see “Executive Summary” and “Latin America GCB” below).
• Finally, Citi is creating Legacy Franchises, a segment that will consist of For additional information regarding the exit markets, see Note 2 to the
all the businesses Citi intends to exit (see below), including its remaining Consolidated Financial Statements. For information regarding risks related to
Legacy Holdings assets. the exit markets, see “Risk Factors” below.

The following table summarizes both Citi’s reporting structure during 2021 and its planned 2022 financial reporting structure:

Current Reporting Structure as of 2021 New Reporting Structure Effective in 2022

Equity Markets Treasury & Trade Solutions

Services
Markets Fixed Income Markets Securities Services

Securities Services Equity Markets

Institutional Clients
Markets
Institutional Clients Group
Treasury & Trade Solutions Fixed Income Markets
Group
Investment Banking Investment Banking
Banking Banking
Corporate Lending Corporate Lending

Private Bank Branded Cards

U.S. Personal
Branded Cards Retail Services
Banking
Personal Banking
North America Retail Services & Wealth Retail Banking
Management
Retail Banking Private Bank
Global Wealth
Management
Global Consumer Branded Cards Wealth Management
Banking Asia
Retail Banking Asia Consumer

Mexico Consumer, Small Business & Middle-Market

Branded Cards Legacy Franchises
Banking
Latin America
Retail Banking Legacy Holdings Assets

Corporate/Other Corporate/Other

6
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

EXECUTIVE SUMMARY other things, the duration and severity of the pandemic-related public health
As described further throughout this Executive Summary, Citi demonstrated crisis, disruptions of global supply chains, inflationary pressures, increasing
continued progress across the franchise during 2021: interest rates and geopolitical tensions involving Eastern Europe, will
continue to create uncertainty around Citi’s businesses and results.
• Citi’s earnings increased significantly versus the prior year, largely For a discussion of trends, uncertainties and risks that will or could
reflecting an allowance for credit loss (ACL) release of approximately impact Citi’s businesses, results of operations and financial condition during
$8.8 billion as a result of continued improvement in both the 2022, see “2021 Results Summary,” “Risk Factors,” each respective business’s
macroeconomic environment and portfolio credit quality. results of operations and “Managing Global Risk” below.
• Citi’s revenues declined 5% from the prior year. Excluding a pretax loss of
approximately $0.7 billion (approximately $0.6 billion after-tax) related to 2021 Results Summary
Citi’s agreement to sell its Australia consumer banking business in Asia Global
Consumer Banking (GCB) (see “Citigroup” below), Citi’s revenues declined Citigroup
4%, as strength in investment banking, equity markets, the private bank and Citigroup reported net income of $22.0 billion, or $10.14 per share,
securities services in Institutional Clients Group (ICG) was more than offset compared to net income of $11.0 billion, or $4.72 per share, in the prior year.
by normalization in market activity in fixed income markets within ICG, as The increase in net income was driven by lower cost of credit, partially offset
well as the impact of lower deposit spreads and card loans across GCB. by higher expenses and lower revenues. Citigroup’s effective tax rate was
20%, up modestly from 19% in the prior year. Earnings per share increased
• Citi’s expenses included pretax costs of approximately $1.2 billion significantly, primarily driven by net income.
($1.1 billion after-tax) primarily related to charges incurred from the
Citigroup revenues of $71.9 billion decreased 5% from the prior year. Excluding
voluntary early retirement program (VERP) in connection with the
the Australia loss on sale, Citigroup revenues decreased 4%, primarily driven
wind-down of the Korea consumer banking business (for additional
by lower revenues in both ICG and GCB, partially offset by higher revenues in
information, see “Asia GCB” below).
Corporate/Other.
• Citi continued to invest in its transformation, including As discussed above, Citi’s 2021 results include the impacts of divestitures
infrastructure supporting its risk and control environment, and make of Citi’s consumer banking businesses in Asia. Reported revenues include the
business-led investments. Australia loss on sale (approximately $0.7 billion pretax, $0.6 billion after-
• Citi had broad-based deposit growth across ICG and GCB (up 3% and 5%, tax), primarily reflecting the impact of a currency translation adjustment
respectively), reflecting continued engagement across both corporate and (CTA) loss (net of hedges) already reflected in the Accumulated other
consumer clients. comprehensive income (AOCI) component of equity. Upon closing, the CTA
• Citi returned approximately $11.8 billion of capital to its common balance will be removed from the AOCI component of equity, resulting in a
shareholders in the form of $4.2 billion in dividends and $7.6 billion in neutral impact to Citi’s Common Equity Tier 1 Capital.
common share repurchases, totaling approximately 105 million common Reported expenses include the impact of the Korea VERP of approximately
shares, while maintaining robust regulatory capital ratios. $1.1 billion (approximately $0.8 billion after-tax) and contract modification
• In addition to the sale announcements related to Asia GCB, Citi also costs related to the Asia divestitures of approximately $119 million
announced it intends to exit the consumer, small business and middle- (approximately $98 million after-tax). (As used throughout this Form 10-K,
market banking operations of Citibanamex in Mexico. Citi’s planned Citi’s results of operations and financial condition excluding the impact
divestitures of its consumer businesses across Mexico, Asia and EMEA of the Australia loss on sale, Korea VERP and other Asia divestiture-related
are aligned with the repositioning of its consumer operations to focus on costs are non-GAAP financial measures. Citi believes the presentation of its
global wealth centers, as well as payments and lending and a targeted results of operations and financial condition excluding the divestiture-related
retail presence in the U.S. (For additional information on the exit markets impacts described above provides a meaningful depiction of the underlying
and Citi’s revised reporting structure effective for the first quarter of 2022, fundamentals of its broader results and Asia GCB businesses’ results for
see “Strategic Refresh—Market Exits and Revised Reporting Strategy” investors, industry analysts and others.)
above and “Latin America GCB” and “Asia GCB” below.) Citigroup’s end-of-period loans decreased 1% from the prior year to
$668 billion. Excluding the impact of foreign currency translation into
Although economic growth and employment rates have continued U.S. dollars for reporting purposes (FX translation), Citigroup’s end-of-
to recover from pandemic-related lows, particularly in the U.S., various period loans were largely unchanged, as growth in ICG was offset by lower
macroeconomic and other challenges and uncertainties related to, among loans in GCB and Corporate/Other. Citigroup’s end-of-period deposits

7
increased 3% to $1.3 trillion. Excluding the impact of FX translation, Citigroup’s Supplementary Leverage ratio was 5.7% as of December 31,
Citigroup’s end-of-period deposits increased 4%, reflecting growth in both 2021, compared to 7.0% as of December 31, 2020. The decrease was primarily
GCB and ICG. (As used throughout this Form 10-K, Citi’s results of operations driven by the expiration of temporary relief granted by the Federal Reserve
excluding the impact of FX translation are non-GAAP financial measures. Board (FRB) as of the end of the first quarter of 2021. For additional
Citi believes the presentation of its results of operations and financial information on SA-CCR and Citi’s capital ratios, see “Capital Resources” below.
condition excluding the impact of FX translation provides a meaningful
Institutional Clients Group
depiction of the underlying fundamentals of its businesses for investors,
ICG net income of $15.7 billion increased 36%, reflecting lower cost of
industry analysts and others.)
credit, partially offset by higher expenses and lower revenues. ICG operating
Expenses expenses increased 8% to $26.5 billion, reflecting continued investments
Citigroup operating expenses of $48.2 billion increased 9% versus the in Citi’s transformation, business-led investments and revenue- and
prior year. Excluding the impact of the Asia divestitures, expenses of transaction-related expenses, partially offset by productivity savings.
$47.0 billion increased 6%, primarily reflecting investments in Citi’s ICG revenues of $43.9 billion decreased 3%, as a 7% increase in Banking
transformation, including infrastructure supporting its risk and control revenues was more than offset by an 11% decline in Markets and securities
environment, business-led investments and revenue- and transaction-related services revenues. The increase in Banking revenues included the impact of
expenses, partially offset by productivity savings. Citi expects expenses $144 million of losses on loan hedges related to corporate lending and the
in 2022 to continue to be impacted by its transformation-related and private bank, compared to losses of $51 million in the prior year.
business-led investments. Banking revenues of $23.3 billion (excluding the impact of losses on
loan hedges) increased 7%, as higher revenues in investment banking and
Cost of Credit
the private bank were partially offset by lower revenues in treasury and trade
Citi’s total provisions for credit losses and for benefits and claims were a
solutions and corporate lending. Investment banking revenues of $7.5 billion
benefit of $3.8 billion, compared to a cost of $17.5 billion in the prior year
increased 30%, reflecting growth across products, particularly in advisory and
primarily related to the pandemic. The decreased cost of credit was driven by
equity underwriting. Advisory revenues increased 78% to $1.8 billion, equity
a net ACL reserve release of $8.8 billion (versus a build of $9.8 billion in the
underwriting revenues increased 53% to $2.4 billion and debt underwriting
prior year) as well as lower net credit losses. Citi’s net ACL release primarily
revenues increased 3% to $3.3 billion.
reflected improvement in Citi’s macroeconomic outlook and portfolio credit
Treasury and trade solutions revenues of $9.4 billion declined 4%, as
quality. Citi could experience higher credit costs in 2022, as the level of ACL
higher fee revenues, including a recovery in commercial card revenues, as
releases from 2021 are unlikely to continue, and Citi expects to build ACL
well as growth in trade were more than offset by the impact of lower deposit
reserves for new lending volumes.
spreads. Private bank revenues increased 5%. Excluding the impact of gains
For further information on the drivers of Citi’s ACL, see “Significant
on loan hedges, private bank revenues of $4.0 billion increased 6%, driven
Accounting Policies and Significant Estimates—Citi’s Allowance for Credit
by higher loan volumes and spreads, as well as higher managed investments
Losses (ACL)” below.
and deposits, partially offset by lower deposit spreads. Corporate lending
Net credit losses of $4.9 billion declined 36% from the prior year.
revenues decreased 3%. Excluding the impact of losses on loan hedges,
Consumer net credit losses of $4.5 billion decreased 32%, primarily reflecting
corporate lending revenues of $2.3 billion decreased 1%, as lower cost of
lower loan volumes and improved delinquencies in the North America
funds was more than offset by lower loan volumes.
cards portfolios. Corporate net credit losses of $395 million decreased 60%,
Markets and securities services revenues of $20.8 billion decreased 11%.
primarily reflecting improvements in portfolio credit quality.
Fixed income markets revenues of $13.7 billion decreased 22%, reflecting
For additional information on Citi’s consumer and corporate credit
a normalization in market activity across rates and spread products.
costs and ACL, see each respective business’s results of operations and
Equity markets revenues of $4.5 billion increased 25%, driven by growth
“Credit Risk” below.
across all products, reflecting solid client activity and favorable market
Capital conditions. Securities services revenues of $2.7 billion increased 6%, as
Citigroup’s Common Equity Tier 1 Capital ratio was 12.2% as of December 31, strong fee revenues, driven by higher settlement volumes and higher assets
2021, based on the Basel III Standardized Approach framework for determining under custody, were partially offset by lower deposit spreads. For additional
risk-weighted assets, compared to 11.5% as of December 31, 2020, based on information on the results of operations of ICG in 2021, see “Institutional
the Basel III Advanced Approaches for determining risk-weighted assets. The Clients Group” below.
increase in the ratio primarily reflected actions to reduce risk-weighted assets
(RWA) and a temporary pause in common share repurchases in the fourth
quarter of 2021, in preparation for the implementation of the Standardized
Approach for Counterparty Credit Risk (SA-CCR) on January 1, 2022. Citi
resumed common share repurchases in January 2022.

8
Global Consumer Banking Year-over-year, excluding the impact of FX translation, international GCB
GCB net income was $6.1 billion, compared to net income of $667 million in average deposits of $146 billion increased 5%, average retail banking loans
the prior year, reflecting lower cost of credit, partially offset by lower revenues of $72 billion decreased 3% and assets under management of $145 billion
and higher expenses. GCB operating expenses of $20.0 billion increased 12%. increased 5%. On this basis, international GCB average card loans of
Excluding the impact of FX translation and the Asia divestitures, expenses $20 billion decreased 13%, while credit card spend volumes of $100 billion
increased 5%, reflecting continued investments in Citi’s transformation, as increased 9%, reflecting a continued recovery in credit card spend activity
well as business-led investments and volume-related expenses, partially offset from the pandemic-related low levels in the prior year.
by productivity savings.
Corporate/Other
GCB revenues of $27.3 billion decreased 10% from the prior year.
Corporate/Other net income was $215 million, compared to a net loss of
Excluding the impact of FX translation and the Australia loss on sale,
$1.1 billion in the prior year, reflecting higher revenues, lower expenses,
revenues decreased 9%, as continued solid deposit growth and growth
lower cost of credit, and the release of a foreign tax credit (FTC) valuation
in assets under management were more than offset by lower card loans
allowance. Operating expenses of $1.6 billion decreased 14%, reflecting the
and lower deposit spreads. For additional information on GCB’s results of
absence of the prior year’s civil money penalty and the wind-down of legacy
operations, including the impact of FX translation, see “Global Consumer
assets, partially offset by increases related to Citi’s transformation.
Banking” below.
Corporate/Other revenues of $667 million compared to $71 million in
North America GCB revenues of $17.5 billion decreased 9%, with lower
the prior year, primarily driven by higher net revenue from the investment
revenues across branded cards, retail services and retail banking. Branded
portfolio. For additional information on the results of operations of
cards revenues of $8.2 billion decreased 7%, reflecting continued higher
Corporate/Other in 2021, see “Corporate/Other” below.
payment rates. Retail services revenues of $5.1 billion decreased 15%,
reflecting continued higher payment rates and lower average loans as well as CITI’S CONSENT ORDER COMPLIANCE
higher partner payments. Retail banking revenues of $4.2 billion decreased Citi has embarked on a multiyear transformation, with the target outcome to
7%, as the benefit of stronger deposit volumes was more than offset by lower change Citi’s business and operating models such that they simultaneously
deposit spreads and lower mortgage revenues. strengthen risk and controls and improve Citi’s value to customers, clients
North America GCB average deposits of $206 billion increased 17% and shareholders.
year-over-year and average retail banking loans of $50 billion decreased 4% This includes efforts to effectively implement the October 2020 FRB and
year-over-year, while assets under management of $87 billion increased 8%. Office of the Comptroller of the Currency (OCC) consent orders issued to
Average branded cards loans of $81 billion decreased 4% and average retail Citigroup and Citibank, respectively. In the second quarter of 2021, Citi
services loans decreased 7%, reflecting higher payment rates. Branded cards made an initial submission to the OCC, and submitted its plans to address
spend volume of $411 billion increased 21% and retail services spend volume the consent orders to both regulators during the third quarter of 2021.
of $92 billion increased 18%, reflecting a recovery in sales activity from the Citi continues to work constructively with the regulators, and will continue to
pandemic-driven low levels in the prior year. For additional information reflect their feedback in its project plans and execution efforts.
on the results of operations of North America GCB in 2021, see “Global As discussed above, Citi’s efforts include continued investments in its
Consumer Banking—North America GCB” below. transformation, including the remediation of its consent orders. Citi’s CEO
International GCB revenues (consisting of Latin America GCB and has made the strengthening of Citi’s risk and control environment a strategic
Asia GCB (which includes the results of operations in certain EMEA countries)) priority and has established a Chief Administrative Officer organization to
of $9.8 billion declined 11% versus the prior year. Excluding the impact of centralize program management. In addition, the Citigroup and Citibank
FX translation and the Australia loss on sale, international GCB revenues Boards of Directors each formed a Transformation Oversight Committee,
declined 7%. Excluding the impact of FX translation, Latin America GCB an ad hoc committee of each Board, to provide oversight of management’s
revenues decreased 9%, driven by lower average loans and lower deposit spreads. remediation efforts under the consent orders.
Excluding the impact of FX translation and the Australia loss on sale, Asia For additional information about the consent orders, see “Risk Factors—
GCB revenues decreased 6%, reflecting lower spreads, partially offset by higher Compliance Risks” below and Citi’s Current Report on Form 8-K filed with
investment revenues. For additional information on the results of operations the SEC on October 7, 2020.
of Latin America GCB and Asia GCB in 2021, including the impacts of FX
translation, see “Global Consumer Banking—Latin America GCB” and
“Global Consumer Banking—Asia GCB” below. For additional information
on Citi’s consumer banking business in Australia, see “Global Consumer
Banking—Asia GCB” below.

9
RESULTS OF OPERATIONS

SUMMARY OF SELECTED FINANCIAL DATA Citigroup Inc. and Consolidated Subsidiaries

In millions of dollars, except per share amounts 2021 2020 2019 2018 2017
Net interest income (1)
$42,494 $44,751 $48,128 $46,562 $45,061
Non-interest revenue 29,390 30,750 26,939 27,474 28,632
Revenues, net of interest expense $71,884 $75,501 $75,067 $74,036 $73,693
Operating expenses(1) 48,193 44,374 42,783 43,023 43,481
Provisions for credit losses and for benefits and claims (3,778) 17,495 8,383 7,568 7,451
Income from continuing operations before income taxes $27,469 $13,632 $23,901 $23,445 $22,761
Income taxes(2) 5,451 2,525 4,430 5,357 29,388
Income (loss) from continuing operations $22,018 $11,107 $19,471 $18,088 $ (6,627)
Income (loss) from discontinued operations, net of taxes 7 (20) (4) (8) (111)
Net income (loss) before attribution of noncontrolling interests $22,025 $11,087 $19,467 $18,080 $ (6,738)
Net income attributable to noncontrolling interests 73 40 66 35 60
Citigroup’s net income (loss)(2) $21,952 $11,047 $19,401 $18,045 $ (6,798)
Earnings per share
Basic
Income (loss) from continuing operations $ 10.21 $ 4.75 $ 8.08 $ 6.69 $ (2.94)
Net income (loss) 10.21 4.74 8.08 6.69 (2.98)
Diluted
Income (loss) from continuing operations $ 10.14 $ 4.73 $ 8.04 $ 6.69 $ (2.94)
Net income (loss) 10.14 4.72 8.04 6.68 (2.98)
Dividends declared per common share 2.04 2.04 1.92 1.54 0.96
Common dividends $ 4,196 $ 4,299 $ 4,403 $ 3,865 $ 2,595
Preferred dividends 1,040 1,095 1,109 1,174 1,213
Common share repurchases 7,600 2,925 17,875 14,545 14,538

Table continues on the next page, including footnotes.

10
SUMMARY OF SELECTED FINANCIAL DATA (Continued) Citigroup Inc. and Consolidated Subsidiaries

In millions of dollars, except per share amounts, ratios and direct staff 2021 2020 2019 2018 2017
At December 31:
Total assets $2,291,413 $2,260,090 $1,951,158 $1,917,383 $1,842,465
Total deposits 1,317,230 1,280,671 1,070,590 1,013,170 959,822
Long-term debt 254,374 271,686 248,760 231,999 236,709
Citigroup common stockholders’ equity(2) 182,977 179,962 175,262 177,760 181,487
Total Citigroup stockholders’ equity(2) 201,972 199,442 193,242 196,220 200,740
Average assets 2,347,709 2,226,454 1,978,805 1,920,242 1,875,438
Direct staff (in thousands) 223 210 200 204 209
Performance metrics
Return on average assets 0.94% 0.50% 0.98% 0.94% (0.36)%
Return on average common stockholders’ equity(2)(3) 11.5 5.7 10.3 9.4 (3.9)
Return on average total stockholders’ equity(2)(3) 10.9 5.7 9.9 9.1 (3.0)
Return on tangible common equity (RoTCE)(2)(4) 13.4 6.6 12.1 11.0 8.1
Efficiency ratio (total operating expenses/total revenues, net) 67.0 58.8 57.0 58.1 59.0
Basel III ratios(2)(5)
Common Equity Tier 1 Capital(6) 12.25% 11.51% 11.79% 11.86% 12.36%
Tier 1 Capital(6) 13.91 13.06 13.33 13.43 14.06
Total Capital(6) 16.04 15.33 15.87 16.14 16.30
Supplementary Leverage ratio 5.73 6.99 6.20 6.40 6.68
Citigroup common stockholders’ equity to assets(2) 7.99% 7.96% 8.98% 9.27% 9.85%
Total Citigroup stockholders’ equity to assets(2) 8.81 8.82 9.90 10.23 10.90
Dividend payout ratio(7) 20 43 24 23 NM
Total payout ratio(8) 56 73 122 109 NM
Book value per common share(2) $ 92.21 $ 86.43 $ 82.90 $ 75.05 $ 70.62
Tangible book value (TBV) per share(2)(4) 79.16 73.67 70.39 63.79 60.16

(1) Revenue previously referred to as net interest revenue is now referred to as net interest income. During the fourth quarter of 2021, Citi reclassified deposit insurance expenses from Interest expense to Other operating
expenses for all periods presented. Amounts reclassified for each year were $1,207 million for 2021, $1,203 million for 2020, $781 million for 2019, $1,182 million for 2018 and $1,249 million for 2017. See Note 1
to the Consolidated Financial Statements.
(2) 2017 includes the one-time impact related to enactment of the Tax Cuts and Jobs Act (Tax Reform). 2020, 2019 and 2018 reflect the tax rate structure post Tax Reform. RoTCE for 2017 excludes the one-time impact
from Tax Reform and is a non-GAAP financial measure. For additional information, see “Significant Accounting Policies and Significant Estimates—Income Taxes” below.
(3) The return on average common stockholders’ equity is calculated using net income less preferred stock dividends divided by average common stockholders’ equity. The return on average total Citigroup stockholders’
equity is calculated using net income divided by average Citigroup stockholders’ equity.
(4) RoTCE and TBV are non-GAAP financial measures. For information on RoTCE and TBV, see “Capital Resources—Tangible Common Equity, Book Value Per Share, Tangible Book Value Per Share and Returns on Equity”
below.
(5) Citi’s risk-based capital and leverage ratios for 2017 are non-GAAP financial measures, which reflect full implementation of regulatory capital adjustments and deductions prior to the effective date of January 1, 2018.
(6) Citi’s reportable Common Equity Tier 1 Capital and Tier 1 Capital ratios were derived under the Basel III Standardized Approach, and the reportable Total Capital ratio was the lower derived under the Basel III Advanced
Approaches framework as of December 31, 2021 and December 31, 2019 to 2017. Citi’s reportable Common Equity Tier 1 Capital, Tier 1 Capital and Total Capital ratios were the lower derived under the Basel III
Advanced Approaches framework as of December 31, 2020.
(7) Dividends declared per common share as a percentage of net income per diluted share.
(8) Total common dividends declared plus common share repurchases as a percentage of net income available to common shareholders (Net income, less preferred dividends). See “Consolidated Statement of Changes in
Stockholders’ Equity,” Note 10 to the Consolidated Financial Statements and “Equity Security Repurchases” below for the component details.
NM Not meaningful

11
SEGMENT AND BUSINESS—INCOME (LOSS) AND REVENUES
CITIGROUP INCOME
% Change % Change
In millions of dollars 2021 2020 2019 2021 vs. 2020 2020 vs. 2019
Income (loss) from continuing operations
Institutional Clients Group
North America $ 5,781 $ 3,310 $ 3,407 75% (3)%
EMEA 4,347 3,280 3,836 33 (14)
Latin America 2,429 1,390 2,101 75 (34)
Asia 3,206 3,573 3,432 (10) 4
Total $15,763 $11,553 $ 12,776 36% (10)%
Global Consumer Banking
North America $ 5,934 $ (46) $ 3,157 NM NM
Latin America 798 241 885 NM (73)%
Asia(1) (686) 468 1,537 NM (70)
Total $ 6,046 $ 663 $ 5,579 NM (88)%
Corporate/Other 209 (1,109) 1,116 NM NM
Income from continuing operations $22,018 $11,107 $ 19,471 98% (43)%
Discontinued operations $ 7 $ (20) $ (4) NM NM
Less: Net income attributable to noncontrolling interests 73 40 66 83% (39)%
Citigroup’s net income $21,952 $11,047 $ 19,401 99% (43)%

(1) Asia GCB includes the results of operations of GCB activities in certain EMEA countries.
NM Not meaningful

CITIGROUP REVENUES
% Change % Change
In millions of dollars 2021 2020 2019 2021 vs. 2020 2020 vs. 2019
Institutional Clients Group
North America $ 16,748 $ 17,476 $ 13,603 (4)% 28%
EMEA 13,094 13,041 12,157 — 7
Latin America 4,946 4,981 5,275 (1) (6)
Asia 9,099 9,590 8,789 (5) 9
Total $ 43,887 $ 45,088 $ 39,824 (3)% 13%
Global Consumer Banking
North America $ 17,481 $ 19,284 $ 20,460 (9)% (6)
Latin America 4,250 4,466 5,334 (5) (16)
Asia(1) 5,599 6,592 7,427 (15) (11)
Total $ 27,330 $ 30,342 $ 33,221 (10)% (9)%
Corporate/Other 667 71 2,022 NM (96)
Total Citigroup net revenues $ 71,884 $ 75,501 $ 75,067 (5)% 1%

(1) Asia GCB includes the results of operations of GCB activities in certain EMEA countries.
NM Not meaningful

12
SEGMENT BALANCE SHEET(1)—DECEMBER 31, 2021
Corporate/Other Citigroup parent
Institutional Global and company-issued Total
Clients Consumer consolidating long-term debt and Citigroup
In millions of dollars Group Banking eliminations(2) stockholders’equity(3) consolidated
Assets
Cash and deposits with banks, net of allowance $ 90,714 $ 7,953 $ 163,366 $ — $ 262,033
Securities borrowed and purchased under agreements to resell,
net of allowance 326,937 118 233 — 327,288
Trading account assets 318,495 1,186 12,264 — 331,945
Investments, net of allowance 132,357 1,218 379,247 — 512,822
Loans, net of unearned income and allowance for credit losses on loans 393,681 253,721 3,910 — 651,312
Other assets, net of allowance 112,901 51,480 41,632 — 206,013
Net inter-segment liquid assets(4) 386,448 116,728 (503,176) — —
Total assets $1,761,533 $432,404 $ 97,476 $ — $2,291,413

Liabilities and equity

Total deposits $ 949,522 $361,808 $ 5,900 $ — $1,317,230
Securities loaned and sold under agreements to repurchase 188,784 2,498 3 — 191,285
Trading account liabilities 160,353 763 413 — 161,529
Short-term borrowings 27,309 109 555 — 27,973
Long-term debt(3) 89,720 482 (773) 164,945 254,374
Other liabilities, net of allowance 88,443 32,325 15,582 — 136,350
Net inter-segment funding (lending)(3) 257,402 34,419 75,096 (366,917) —
Total liabilities $1,761,533 $432,404 $ 96,776 $ (201,972) $2,088,741
Total stockholders’ equity(5) — — 700 201,972 202,672
Total liabilities and equity $1,761,533 $432,404 $ 97,476 $ — $2,291,413

(1) The supplemental information presented in the table above reflects Citigroup’s consolidated GAAP balance sheet by reporting segment. The respective segment information depicts the assets and liabilities managed by
each segment.
(2) Consolidating eliminations for total Citigroup and Citigroup parent company assets and liabilities are recorded within Corporate/Other.
(3) Total stockholders’ equity and the majority of long-term debt of Citigroup are reflected on the Citigroup parent company balance sheet. Citigroup allocates stockholders’ equity and long-term debt to its businesses
through inter-segment allocations as shown above.
(4) Represents the attribution of Citigroup’s liquid assets (primarily consisting of cash, marketable equity securities and available-for-sale debt securities) to the various businesses based on Liquidity Coverage Ratio
(LCR) assumptions.
(5) Corporate/Other equity represents noncontrolling interests.

13
INSTITUTIONAL CLIENTS GROUP recorded in Principal transactions (for additional information on Principal
transactions revenue, see Note 6 to the Consolidated Financial Statements).
As of December 31, 2021, Institutional Clients Group (ICG) included Other primarily includes realized gains and losses on available-for-sale
Banking and Markets and securities services (for additional information (AFS) debt securities, gains and losses on equity securities not held in
on these businesses, see “Citigroup Segments” above). ICG provided trading accounts and other non-recurring gains and losses. Interest income
corporate, institutional, public sector and high-net-worth clients around the earned on assets held, less interest paid on long- and short-term debt and to
world with a full range of wholesale banking products and services, including customers on deposits, is recorded as Net interest income.
fixed income and equity sales and trading, foreign exchange, prime The amount and types of Markets revenues are impacted by a variety of
brokerage, derivative services, equity and fixed income research, corporate interrelated factors, including market liquidity; changes in market variables
lending, investment banking and advisory services, private banking, cash such as interest rates, foreign exchange rates, equity prices, commodity prices
management, trade finance and securities services. ICG transacted with and credit spreads, as well as their implied volatilities; investor confidence
clients in both cash instruments and derivatives, including fixed income, and other macroeconomic conditions. Assuming all other market conditions
foreign currency, equity and commodity products. do not change, increases in client activity levels or bid/offer spreads generally
For information on Citi’s planned revision to its reporting structure, result in increases in revenues. However, changes in market conditions
including the reporting of the private bank as part of a new reporting can significantly impact client activity levels, bid/offer spreads and the fair
segment, Personal Banking and Wealth Management, see “Strategic value of product inventory. For example, a decrease in market liquidity may
Refresh—Market Exits and Planned Revision to Reporting Structure” above. increase bid/offer spreads, decrease client activity levels and widen credit
ICG revenue is generated primarily from fees and spreads associated with spreads on product inventory positions.
these activities. ICG earns fee income for assisting clients with transactional ICG’s management of the Markets businesses involves daily monitoring
services and clearing and providing brokerage and investment banking and evaluation of the above factors at the trading desk as well as the
services and other such activities. Such fees are recognized at the point country level.
in time when Citigroup’s performance under the terms of a contractual In the Markets businesses, client revenues are those revenues directly
arrangement is completed, which is typically at the trade/execution date or attributable to client transactions at the time of inception, including
closing of a transaction. Revenue generated from these activities is recorded in commissions, interest or fees earned. Client revenues do not include the
Commissions and fees and Investment banking. Revenue is also generated results of client facilitation activities (e.g., holding product inventory
from assets under custody and administration, which is recognized as/when in anticipation of client demand) or the results of certain economic
the associated promised service is satisfied, which normally occurs at the point hedging activities.
in time the service is requested by the customer and provided by Citi. Revenue ICG’s international presence is supported by trading floors in approximately
generated from these activities is primarily recorded in Administration and 80 countries and a proprietary network in 95 countries and jurisdictions. At
other fiduciary fees. For additional information on these various types of December 31, 2021, ICG had $1.8 trillion in assets and $950 billion in deposits.
revenues, see Note 5 to the Consolidated Financial Statements. Securities services and issuer services managed $24.0 trillion in assets under
In addition, as a market maker, ICG facilitates transactions, including custody and administration at December 31, 2021, of which Citi provides both
holding product inventory to meet client demand, and earns the differential custody and administrative services to certain clients related to $1.9 trillion of
between the price at which it buys and sells the products. These price such assets. Managed assets under trust were $3.8 trillion at December 31, 2021.
differentials and the unrealized gains and losses on the inventory are For additional information on these operations, see “Administration and Other
recorded in Principal transactions. Mark-to-market gains and losses on Fiduciary Fees” in Note 5 to the Consolidated Financial Statements.
certain credit derivatives (used to hedge the corporate loan portfolio) are also

14
 % Change % Change
In millions of dollars, except as otherwise noted 2021 2020 2019 2021 vs. 2020 2020 vs. 2019
Commissions and fees $ 4,750 $ 4,412 $ 4,462 8% (1)%
Administration and other fiduciary fees 3,351 2,877 2,756 16 4
Investment banking 6,741 5,009 4,440 35 13
Principal transactions 10,064 13,308 8,562 (24) 55
Other(1) 1,384 1,149 1,829 20 (37)
Total non-interest revenue $26,290 $26,755 $22,049 (2)% 21%
Net interest income (including dividends) 17,597 18,333 17,775 (4) 3
Total revenues, net of interest expense $43,887 $45,088 $39,824 (3)% 13%
Total operating expenses(2) $26,513 $24,617 $22,961 8% 7%
Net credit losses on loans $ 396 $ 987 $ 394 (60)% NM
Credit reserve build (release) for loans (2,533) 3,172 71 NM NM
Provision for credit losses on unfunded lending commitments (777) 1,435 98 NM NM
Provisions for credit losses on HTM debt securities and other assets 1 21 — (95) 100%
Provisions for credit losses $ (2,913) $ 5,615 $ 563 NM NM
Income from continuing operations before taxes $20,287 $14,856 $16,300 37% (9)%
Income taxes 4,524 3,303 3,524 37 (6)
Income from continuing operations $15,763 $11,553 $12,776 36% (10)%
Noncontrolling interests 83 50 40 66 25
Net income $15,680 $11,503 $12,736 36% (10)%
Balance Sheet data and ratios
EOP assets (in billions of dollars) $ 1,762 $ 1,730 $ 1,447 2% 20%
Average assets (in billions of dollars) 1,812 1,706 1,493 6 14
Return on average assets 0.87% 0.67% 0.85%
Efficiency ratio 60 55 58
Revenues by region
North America $16,748 $17,476 $13,603 (4)% 28%
EMEA 13,094 13,041 12,157 — 7
Latin America 4,946 4,981 5,275 (1) (6)
Asia 9,099 9,590 8,789 (5) 9
Total $43,887 $45,088 $39,824 (3)% 13%
Income from continuing operations by region
North America $ 5,781 $ 3,310 $ 3,407 75% (3)%
EMEA 4,347 3,280 3,836 33 (14)
Latin America 2,429 1,390 2,101 75 (34)
Asia 3,206 3,573 3,432 (10) 4
Total $15,763 $11,553 $12,776 36% (10)%
Average loans by region (in billions of dollars)
North America $ 202 $ 201 $ 188 —% 7%
EMEA 89 88 87 1 1
Latin America 32 39 40 (18) (3)
Asia 73 71 73 3 (3)
Total $ 396 $ 399 $ 388 (1)% 3%
EOP deposits by business (in billions of dollars)
Treasury and trade solutions $ 636 $ 651 $ 536 (2)% 21%
All other ICG businesses 314 273 232 15 18
Total $ 950 $ 924 $ 768 3% 20%

(1) 2019 includes an approximate $350 million gain on Citi’s investment in Tradeweb.
(2) 2020 includes an approximate $390 million operational loss related to certain legal matters.
NM Not meaningful

15
ICG Revenue Details

% Change % Change
In millions of dollars 2021 2020 2019 2021 vs. 2020 2020 vs. 2019
Investment banking revenue details
Advisory $ 1,796 $ 1,010 $ 1,259 78% (20)%
Equity underwriting 2,434 1,593 973 53 64
Debt underwriting 3,283 3,184 2,984 3 7
Total investment banking $ 7,513 $ 5,787 $ 5,216 30% 11%
Treasury and trade solutions 9,444 9,824 10,513 (4) (7)
Corporate lending—excluding gains (losses) on loan hedges(1) 2,291 2,310 2,985 (1) (23)
Private bank—excluding gains (losses) on loan hedges(1) 4,005 3,794 3,487 6 9
Total Banking revenues (ex-gains (losses) on loan hedges)(1) $ 23,253 $ 21,715 $ 22,201 7% (2)%
Losses on loan hedges (1)
$ (144) $ (51) $ (432) NM 88%
Total Banking revenues (including gains (losses)
on loan hedges), net of interest expense $ 23,109 $ 21,664 $ 21,769 7% —%

Fixed income markets (2)

$ 13,720 $ 17,588 $ 13,074 (22)% 35%
Equity markets 4,545 3,624 2,908 25 25
Securities services 2,720 2,562 2,642 6 (3)
Other (207) (352) (569) 41 38
Total Markets and securities services revenues,
net of interest expense $ 20,778 $ 23,424 $ 18,055 (11)% 30%
Total revenues, net of interest expense $ 43,887 $ 45,088 $ 39,824 (3)% 13%
Commissions and fees $ 793 $ 677 $ 782 17% (13)%
Principal transactions(3) 7,692 11,518 7,661 (33) 50
Other(2) 831 579 1,117 44 (48)
Total non-interest revenue $ 9,316 $ 12,774 $ 9,560 (27)% 34%
Net interest income 4,404 4,814 3,514 (9) 37
Total fixed income markets(4) $ 13,720 $ 17,588 $ 13,074 (22)% 35%
Rates and currencies $ 8,903 $ 12,162 $ 9,242 (27)% 32%
Spread products/other fixed income 4,817 5,426 3,832 (11) 42
Total fixed income markets $ 13,720 $ 17,588 $ 13,074 (22)% 35%
Commissions and fees $ 1,231 $ 1,245 $ 1,121 (1)% 11%
Principal transactions(3) 1,986 1,281 775 55 65
Other 191 322 172 (41) 87
Total non-interest revenue $ 3,408 $ 2,848 $ 2,068 20% 38%
Net interest income 1,137 776 840 47 (8)
Total equity markets(4) $ 4,545 $ 3,624 $ 2,908 25% 25%

(1) Credit derivatives are used to economically hedge a portion of the private bank and corporate loan portfolio that includes both accrual loans and loans at fair value. Gains (losses) on loan hedges include the
mark-to-market on the credit derivatives and the mark-to-market on the loans in the portfolio that are at fair value. The fixed premium costs of these hedges are netted against the private bank and corporate lending
revenues to reflect the cost of credit protection. Gains (losses) on loan hedges include $(131) million and $(74) million related to the corporate loan portfolio and $(13) million and $23 million related to the private bank
for the years ended December 31, 2021 and 2020, respectively. All of gains (losses) on loan hedges are related to the corporate loan portfolio for the year ended December 31, 2019. Citigroup’s results of operations
excluding the impact of gains (losses) on loan hedges are non-GAAP financial measures.
(2) 2019 includes an approximate $350 million gain on Citi’s investment in Tradeweb.
(3) Excludes principal transactions revenues of ICG businesses other than Markets, primarily treasury and trade solutions and the private bank.
(4) Citi assesses its Markets business performance on a total revenue basis, as offsets may occur across revenue line items. For example, securities that generate Net interest income may be risk managed by derivatives
that are recorded in Principal transactions revenue. For a description of the composition of these revenue line items, see Notes 4, 5 and 6 to the Consolidated Financial Statements.
NM Not meaningful

16
The discussion of the results of operations for ICG below excludes (where noted) the impact of gains (losses) on hedges of accrual loans, which are non-
GAAP financial measures. For a reconciliation of these metrics to the reported results, see the table above.

2021 vs. 2020 Within Markets and securities services:

Net income of $15.7 billion increased 36% versus the prior year, primarily driven
by lower cost of credit, partially offset by higher expenses and lower revenues. • Fixed income markets revenues decreased 22%, reflecting lower revenues
Revenues decreased 3%, reflecting lower Markets and securities services across all regions, largely driven by a comparison to a strong prior
revenues, partially offset by higher Banking revenues. Banking revenues year, as well as a normalization in market activity, particularly in rates
were up 7% (both including and excluding the impact of losses on loan and currencies, and spread products. Non-interest revenues decreased,
hedges), driven by higher revenues in investment banking and the private reflecting lower investor client activity across rates and currencies and
bank, partially offset by lower revenues in treasury and trade solutions and spread products. Net interest income also decreased, largely reflecting a
corporate lending. Markets and securities services revenues were down change in the mix of trading positions.
11%, primarily reflecting a normalization in fixed income markets revenues, Rates and currencies revenues decreased 27%, driven by the
partially offset by growth in equity markets and securities services. normalization in market activity, and a comparison to a strong prior year
Citi expects that revenues in its markets and investment banking that included elevated levels of volatility related to the pandemic. Spread
businesses will continue to reflect the overall market environment products and other fixed income revenues decreased 11%, driven by a
during 2022. comparison to a strong prior year and the normalization in market activity,
particularly in flow trading and structured products, reflecting lower
Within Banking: volatility and spreads, partially offset by strong securitization activity.
• Investment banking revenues were up 30%, reflecting growth in the • Equity markets revenues increased 25%, driven by growth across all
overall market wallet. Advisory revenues increased 78%, reflecting strength products. Equity derivatives revenues increased reflecting higher client
in North America and EMEA, driven by growth in the market wallet as activity, particularly in EMEA and North America. Prime finance
well as wallet share gains. Equity underwriting revenues increased 53%, revenues increased due to favorable market conditions as well as growth
reflecting strength in North America and EMEA, driven by growth in the in client balances. Cash equities revenues increased modestly, reflecting
market wallet, as well as wallet share gains. Debt underwriting revenues higher client activity. Non-interest revenues increased, primarily due to
increased 3%, reflecting strength in EMEA, as growth in the market wallet higher principal transactions revenues, reflecting higher client activity.
was partially offset by a decline in wallet share. • Securities services revenues increased 6%. Excluding the impact of FX
• Treasury and trade solutions revenues decreased 4% (both including and translation, revenues increased 7%, as an increase in fee revenues with
excluding the impact of FX translation), reflecting a decline in revenues both new and existing clients, driven by growth in assets under custody
in the cash business, partially offset by an increase in trade revenues. Cash and settlement volumes, was partially offset by lower deposit spreads.
revenues decreased, driven by the ongoing impact of lower deposit spreads.
Expenses were up 8%, primarily driven by continued investments in Citi’s
The decrease was partially offset by strong growth in fee revenues reflecting
transformation, business-led investments and higher incentive compensation,
solid client engagement and growth in transaction volumes, including
as well as transactional related expenses, partially offset by productivity savings.
growth in USD clearing, commercial cards and cross-border solutions. The
Provisions reflected a benefit of $2.9 billion compared to costs of $5.6 billion in
increase in trade revenues was driven by improved trade spreads and growth
the prior year, driven by an ACL release and lower net credit losses.
in loans, reflecting an increase in trade flows and originations, primarily
Net credit losses declined to $396 million from $987 million in the prior
in Asia and EMEA. Average trade loans increased 5% (both including and
year, driven by improvements in portfolio credit quality.
excluding the impact of FX translation).
The ACL release was $3.3 billion compared to a build of $4.6 billion
• Corporate lending revenues decreased 3%, including the impact of losses in the prior year. The release was primarily driven by improvements in
on loan hedges. Excluding the impact of losses on loan hedges, revenues portfolio credit quality as well as Citi’s improved macroeconomic outlook.
decreased 1%, as lower cost of funds was more than offset by lower loan For additional information on Citi’s ACL, see “Significant Accounting Policies
volumes, reflecting muted demand given strong client liquidity positions. and Significant Estimates” below.
Average loans decreased 20% during the current year. For additional information on trends in ICG’s deposits and loans, see
• Private bank revenues increased 5%. Excluding the impact of gains “Managing Global Risk—Liquidity Risk—Loans” and “—Deposits” below.
(losses) on loan hedges, revenues increased 6%, driven by strong For additional information on ICG’s corporate credit portfolio, see
performance in North America and EMEA. The higher revenues reflected “Managing Global Risk—Credit Risk—Corporate Credit” below.
continued momentum with new and existing clients, resulting in higher For additional information about trends, uncertainties and risks related
loan volumes and spreads, higher managed investments revenues and to ICG’s future results, see “Managing Global Risk—Other Risks—Country
higher deposit volumes. The increase in revenues was partially offset by Risk—Argentina” and “Risk Factors” below.
lower deposit spreads due to the ongoing low interest rate environment
and lower capital markets revenue.

17
GLOBAL CONSUMER BANKING
As of December 31, 2021, Global Consumer Banking (GCB) consisted of consumer banking businesses in North America, Latin America (consisting of Citi’s
consumer banking business in Mexico) and Asia. GCB provided traditional banking services to retail customers through retail banking, branded cards and, in
the U.S., retail services (for information on consumer market exits related to Latin America GCB and Asia GCB as well as Citi’s planned revision to its reporting
structure, see “Strategic Refresh—Market Exits and Planned Revision to Reporting Structure” above).
GCB’s markets in the U.S., Mexico and Asia had a combined 2,154 branches in 19 countries and jurisdictions as of December 31, 2021. At December 31, 2021,
GCB had $267 billion in loans and $362 billion in retail banking deposits (excluding approximately $10 billion of loans and $8 billion of deposits reclassified to
held-for-sale as a result of Citi’s agreements to sell its consumer banking businesses in Australia and the Philippines).

% Change % Change
In millions of dollars, except as otherwise noted 2021 2020 2019 2021 vs. 2020 2020 vs. 2019
Net interest income $24,238 $26,551 $28,455 (9)% (7)%
Non-interest revenue 3,092 3,791 4,766 (18) (20)
Total revenues, net of interest expense $27,330 $30,342 $33,221 (10)% (9)%
Total operating expenses $20,035 $17,834 $18,039 12% (1)%
Net credit losses on loans $ 4,582 $ 6,646 $ 7,382 (31)% (10)%
Credit reserve build (release) for loans (5,174) 4,951 439 NM NM
Provision for credit losses on unfunded lending commitments — — 1 — 100
Provisions for benefits and claims, and other assets 96 105 73 (9) 44
Provisions for credit losses and for benefits and claims (PBC) $ (496) $11,702 $ 7,895 NM 48%
Income from continuing operations before taxes $ 7,791 $ 806 $ 7,287 NM (89)%
Income taxes 1,745 143 1,708 NM (92)
Income from continuing operations $ 6,046 $ 663 $ 5,579 NM (88)%
Noncontrolling interests (11) (4) 6 NM NM
Net income $ 6,057 $ 667 $ 5,573 NM (88)%
Balance Sheet data and ratios
EOP assets (in billions of dollars) $ 432 $ 434 $ 407 —% 7%
Average assets (in billions of dollars) 440 426 389 3 10
Return on average assets 1.38% 0.16% 1.43%
Efficiency ratio 73 59 54
Average retail banking deposits (in billions of dollars) $ 352 $ 311 $ 277 13 12
Net credit losses as a percentage of average loans 1.72% 2.39% 2.60%
Revenue by business
Retail banking $10,776 $11,996 $12,758 (10)% (6)%
Cards(1) 16,554 18,346 20,463 (10) (10)
Total $27,330 $30,342 $33,221 (10)% (9)%

Income from continuing operations by business

Retail banking $ (830) $ 557 $ 1,741 NM (68)%
Cards(1) 6,876 106 3,838 NM (97)
Total $ 6,046 $ 663 $ 5,579 NM (88)%

Table continues on the next page, including footnotes.

18
Foreign currency (FX) translation impact
Total revenue—as reported $27,330 $30,342 $33,221 (10)% (9)%
Impact of FX translation(2) — 323 (157)
Total revenues—ex-FX(3) $27,330 $30,665 $33,064 (11)% (7)%

Total operating expenses—as reported $20,035 $17,834 $18,039 12% (1)%

Impact of FX translation(2) — 212 (80)
Total operating expenses—ex-FX(3) $20,035 $18,046 $17,959 11% —%

Total provisions for credit losses and PBC—as reported $ (496) $11,702 $ 7,895 NM 48%
Impact of FX translation(2) — 87 (51)
Total provisions for credit losses and PBC—ex-FX(3) $ (496) $11,789 $ 7,844 NM 50%

Net income—as reported $ 6,057 $ 667 $ 5,573 NM (88)%

Impact of FX translation(2) — 12 (11)
Net income—ex-FX(3) $ 6,057 $ 679 $ 5,562 NM (88)%

(1) Includes both branded cards and retail services.

(2) Reflects the impact of FX translation into U.S. dollars at the 2021 average exchange rates for all periods presented.
(3) Presentation of this metric excluding FX translation is a non-GAAP financial measure.
NM Not meaningful

19
NORTH AMERICA GCB
As of December 31, 2021, North America GCB provided traditional retail banking and branded and retail services card products to retail and small business
customers in the U.S. North America GCB’s U.S. cards product portfolio included its proprietary portfolio (Double Cash, Custom Cash, ThankYou and
Value cards) and co-branded cards (including, among others, American Airlines and Costco) within branded cards, as well as its co-brand and private label
relationships (including, among others, The Home Depot, Sears, Best Buy and Macy’s) within retail services. For information on Citi’s planned revision to its
reporting structure, including the reporting of North America GCB’s consumer banking businesses as part of a new reporting segment, Personal Banking and
Wealth Management, see “Strategic Refresh—Market Exits and Planned Revision to Reporting Structure” above.
At December 31, 2021, North America GCB had 658 retail bank branches concentrated in the six key metropolitan areas of New York, Chicago, Miami,
Washington, D.C., Los Angeles and San Francisco. Also, as of December 31, 2021, North America GCB had $48.1 billion in retail banking loans and $219.3
billion in retail banking deposits. In addition, North America GCB had $133.9 billion in outstanding card loan balances.

% Change % Change
In millions of dollars, except as otherwise noted 2021 2020 2019 2021 vs. 2020 2020 vs. 2019
Net interest income $ 17,393 $ 18,938 $ 19,931 (8)% (5)%
Non-interest revenue 88 346 529 (75) (35)
Total revenues, net of interest expense $ 17,481 $ 19,284 $ 20,460 (9)% (6)%
Total operating expenses $ 10,832 $ 10,237 $ 10,305 6% (1)%
Net credit losses on loans $ 2,937 $ 4,990 $ 5,583 (41)% (11)%
Credit reserve build for loans (3,974) 4,115 469 NM NM
Provision for credit losses on unfunded lending commitments — — 1 — 100
Provisions for benefits and claims, and other assets 19 17 19 12 (11)
Provisions for credit losses and for benefits and claims $ (1,018) $ 9,122 $ 6,072 NM 50%
Income from continuing operations before taxes $ 7,667 $ (75) $ 4,083 NM NM
Income taxes 1,733 (29) 926 NM NM
Income from continuing operations $ 5,934 $ (46) $ 3,157 NM NM
Noncontrolling interests — — — —% —%
Net income $ 5,934 $ (46) $ 3,157 NM NM
Balance Sheet data and ratios
Average assets (in billions of dollars) $ 266 $ 266 $ 232 —% 15%
Return on average assets 2.23% (0.02)% 1.36%
Efficiency ratio 62 53 50
Average retail banking deposits (in billions of dollars) $ 206 $ 176 $ 153 17 15
Net credit losses as a percentage of average loans 1.69% 2.72% 2.97%
Revenue by business
Retail banking $ 4,211 $ 4,519 $ 4,558 (7)% (1)%
Branded cards 8,189 8,800 9,184 (7) (4)
Retail services 5,081 5,965 6,718 (15) (11)
Total $ 17,481 $ 19,284 $ 20,460 (9)% (6)%

Income (loss) from continuing operations by business

Retail banking $ (453) $ (232) $ 145 (95)% NM
Branded cards 3,903 12 1,734 NM (99)%
Retail services 2,484 174 1,278 NM (86)
Total $ 5,934 $ (46) $ 3,157 NM NM

NM Not meaningful

20
2021 vs. 2020 Expenses increased 6%, primarily driven by continued investments
Net income was $5.9 billion, compared to a net loss of $46 million in the in Citi’s transformation, as well as business-led investments and higher
prior year, reflecting significantly lower cost of credit, partially offset by lower volume-related expenses, partially offset by productivity savings.
revenues and higher expenses. Provisions reflected a benefit of $1.0 billion, compared to costs of
Revenues decreased 9%, reflecting lower revenues in retail banking, $9.1 billion in the prior year, primarily driven by a net ACL release compared
branded cards and retail services. to a net ACL build in the prior year, as well as lower net credit losses. Net
Retail banking revenues decreased 7%, as the benefit of strong deposit credit losses decreased 41%, consisting of lower net credit losses in both
growth and growth in assets under management (increase of 8%, reflecting branded cards (down 39% to $1.7 billion) and retail services (down 46%
favorable market conditions and strong client engagement) was more than to $1.2 billion), primarily driven by lower loan volumes and improved
offset by lower deposit spreads, as well as lower mortgage revenues. Average delinquencies, primarily as a result of the higher payment rates.
deposits increased 17%, driven by higher levels of consumer liquidity due The net ACL release was $4.0 billion, compared to a net build of
to government stimulus, as well as continued strategic efforts to drive $4.1 billion in the prior year, reflecting improvement in portfolio credit
organic growth. quality and the continued improvement in the macroeconomic outlook.
Cards revenues decreased 10%. Branded cards revenues decreased 7%, For additional information on Citi’s ACL, see “Significant Accounting
primarily driven by continued higher payment rates, reflecting increased Policies and Significant Estimates” below.
customer liquidity from government stimulus and relief programs, partially For additional information on North America GCB’s retail banking, and
offset by higher spending-related revenues. Credit card spend volume its branded cards and retail services portfolios, see “Credit Risk—Consumer
increased 21%, reflecting a continued recovery in sales activity from the Credit” below.
pandemic-driven low levels in the prior year. For additional information about trends, uncertainties and risks related
Retail services revenues decreased 15%, primarily driven by lower average to North America GCB’s future results, see “Executive Summary” above and
loans (down 7%), reflecting higher payment rates from the increased “Risk Factors—Strategic Risks” below.
customer liquidity from government stimulus and relief programs, as well
as higher partner payments, reflecting higher income sharing as a result of
lower net credit losses. For additional information on partner payments, see
Note 5 to the Consolidated Financial Statements. Credit card spend volume
increased 18%, reflecting a continued recovery in sales activity from the
pandemic-driven low levels in the prior year.

21
LATIN AMERICA GCB
As of December 31, 2021, Latin America GCB provided traditional retail banking and branded card products to consumer and small business customers in
Mexico through Citibanamex.
As discussed above, Citi intends to exit its consumer, small business and middle-market banking operations in Mexico. For additional information, see
Citi’s Current Report on Form 8-K filed with the SEC on January 11, 2022. For information on Citi’s planned revision to its reporting structure, including the
reporting of the Mexico consumer, small business and middle-market banking operations as part of a new reporting segment, Legacy Franchises, see “Strategic
Refresh—Market Exits and Planned Revision to Reporting Structure” above.
At December 31, 2021, Latin America GCB had 1,276 retail branches in Mexico, with $8.6 billion in retail banking loans and $24.8 billion in deposits. In
addition, the business had $4.7 billion in outstanding card loan balances.

% Change % Change
In millions of dollars, except as otherwise noted 2021 2020 2019 2021 vs. 2020 2020 vs. 2019
Net interest income $2,874 $3,172 $3,735 (9)% (15)%
Non-interest revenue 1,376 1,294 1,599 6 (19)
Total revenues, net of interest expense $4,250 $4,466 $5,334 (5)% (16)%
Total operating expenses $2,949 $2,871 $3,001 3% (4)%
Net credit losses on loans $ 920 $ 866 $1,109 6% (22)%
Credit reserve build (release) for loans (825) 316 (38) NM NM
Provision for credit losses on unfunded lending commitments — — — — —
Provisions for benefits and claims, and other assets 80 87 54 (8) 61
Provisions for credit losses and for benefits and claims (PBC) $ 175 $1,269 $1,125 (86)% 13%
Income from continuing operations before taxes $1,126 $ 326 $1,208 NM (73)%
Income taxes 328 85 323 NM (74)
Income from continuing operations $ 798 $ 241 $ 885 NM (73)%
Noncontrolling interests — — — —% —
Net income $ 798 $ 241 $ 885 NM (73)%
Balance Sheet data and ratios
Average assets (in billions of dollars) $ 35 $ 32 $ 35 9% (9)%
Return on average assets 2.28% 0.75% 2.53%
Efficiency ratio 69 64 56
Average deposits (in billions of dollars) $ 24 $ 23 $ 23 4 —
Net credit losses as a percentage of average loans 6.87% 5.97% 6.45%
Revenue by business
Retail banking $3,119 $3,103 $3,681 1% (16)%
Branded cards 1,131 1,363 1,653 (17) (18)
Total $4,250 $4,466 $5,334 (5)% (16)%
Income from continuing operations by business
Retail banking $ 435 $ 120 $ 586 NM (80)%
Branded cards 363 121 299 NM (60)
Total $ 798 $ 241 $ 885 NM (73)%
FX translation impact
Total revenues—as reported $4,250 $4,466 $5,334 (5)% (16)%
Impact of FX translation(1) — 211 (246)
Total revenues—ex-FX(2) $4,250 $4,677 $5,088 (9)% (8)%
Total operating expenses—as reported $2,949 $2,871 $3,001 3% (4)%
Impact of FX translation(1) — 129 (132)
Total operating expenses—ex-FX(2) $2,949 $3,000 $2,869 (2)% 5%
Provisions for credit losses and PBC—as reported $ 175 $1,269 $1,125 (86)% 13%
Impact of FX translation(1) — 66 (58)
Provisions for credit losses and PBC—ex-FX(2) $ 175 $1,335 $1,067 (87)% 25%
Net income—as reported $ 798 $ 241 $ 885 NM (73)%
Impact of FX translation(1) — 9 (37)
Net income—ex-FX(2) $ 798 $ 250 $ 848 NM (71)%

(1) Reflects the impact of FX translation into U.S. dollars at the 2021 average exchange rates for all periods presented.
(2) Presentation of this metric excluding FX translation is a non-GAAP financial measure.
NM Not meaningful

22
The discussion of the results of operations for Latin America GCB below excludes the impact of FX translation for all periods presented. Presentations of
the results of operations, excluding the impact of FX translation, are non-GAAP financial measures. For a reconciliation of certain of these metrics to
the reported results, see the table above.

2021 vs. 2020 Expenses decreased 2%, as productivity savings more than offset
Net income was $798 million, compared to $250 million in the prior year, continued investments in Citi’s transformation.
reflecting significantly lower cost of credit and modestly lower expenses, Provisions of $174 million decreased 87%, primarily driven by a net
partially offset by lower revenues. ACL release compared to a net ACL build in the prior year, partially offset by
Revenues decreased 9%, reflecting lower cards and retail banking higher net credit losses resulting from pandemic-related charge-offs.
revenues, largely due to the continued impact of the pandemic. The net ACL release was $826 million, compared to a build of $329
Retail banking revenues decreased 4%, primarily driven by lower loan million in the prior year. The release reflected an improvement in portfolio
volumes and deposit spreads, partially offset by growth in assets under credit quality, as well as continued improvement in the macroeconomic
management. Average loans decreased 13%, reflecting the impact of the outlook and lower loan volumes. For additional information on Citi’s ACL,
pandemic on customer activity. Assets under management increased 8%, see “Significant Accounting Policies and Significant Estimates” below.
reflecting favorable market conditions, as well as strong client engagement. For additional information on Latin America GCB’s retail banking and
Cards revenues decreased 21%, primarily driven by lower average loans its branded cards portfolios, see “Credit Risk—Consumer Credit” below.
(down 11%), reflecting higher payment rates. Credit card spend volume For additional information about trends, uncertainties and risks related
increased 16%, reflecting a continued recovery in sales activity from the to Latin America GCB’s future results, see “Executive Summary” above and
pandemic-driven low levels in the prior year. “Risk Factors—Strategic Risks” below.

23
ASIA GCB
As of December 31, 2021, Asia GCB provided traditional retail banking and branded card products to retail and small business customers. Included within Asia GCB
were traditional retail banking and branded card products provided to retail customers in certain EMEA countries, primarily the UAE, Poland and Russia.
As discussed above, Citi is pursuing exits of its consumer franchises in 13 markets across Asia and EMEA and will focus its consumer banking franchise in the
two regions on four wealth centers: Singapore, Hong Kong, the UAE and London. In 2021, Citi entered into agreements to sell its consumer banking businesses
in Australia and the Philippines, and made a decision to wind down and close its Korea consumer banking business (for additional information, see Note 2 to
the Consolidated Financial Statements).
In addition, in January 2022, Citi entered into agreements to sell its consumer banking businesses in Indonesia, Malaysia, Taiwan, Thailand and Vietnam.
For information on Citi’s planned revision to its reporting structure, including the reporting of the 13 exit markets as part of a new reporting segment, Legacy
Franchises, see “Strategic Refresh—Market Exits and Planned Revision to Reporting Structure” above.
At December 31, 2021, on a combined basis, the businesses had 220 retail branches, $58.9 billion in retail banking loans and $117.7 billion in deposits.
In addition, the businesses had $13.1 billion in outstanding card loan balances. These amounts exclude approximately $10 billion of loans ($7 billion of
retail banking loans and $3 billion of credit card loan balances) and $8 billion of deposits reclassified to held-for-sale (HFS) as a result of Citi’s agreements
to sell its consumer banking businesses in Australia and the Philippines. Australia and the Philippines are the only consumer businesses reclassified as HFS at
December 31, 2021. For additional information, see Note 2 to the Consolidated Financial Statements.

% Change % Change
In millions of dollars, except as otherwise noted (1) 2021 2020 2019 2021 vs. 2020 2020 vs. 2019
Net interest income $ 3,971 $4,441 $4,789 (11)% (7)%
Non-interest revenue 1,628 2,151 2,638 (24) (18)
Total revenues, net of interest expense $ 5,599 $6,592 $7,427 (15)% (11)%
Total operating expenses $ 6,254 $4,726 $4,733 32% —%
Net credit losses on loans $ 725 $ 790 $ 690 (8)% 14%
Credit reserve build for loans (375) 520 8 NM NM
Provisions for other assets (3) 1 — NM —
Provisions for credit losses $ 347 $1,311 $ 698 (74)% 88%
Income (loss) from continuing operations before taxes $(1,002) $ 555 $1,996 NM (72)%
Income taxes (benefits) (316) 87 459 NM (81)
Income (loss) from continuing operations $ (686) $ 468 $1,537 NM (70)%
Noncontrolling interests (11) (4) 6 NM NM
Net income (loss) $ (675) $ 472 $1,531 NM (69)%
Balance Sheet data and ratios    
Average assets (in billions of dollars) $ 139 $ 129 $ 122 8% 6%
Return on average assets (0.49)% 0.37% 1.25%
Efficiency ratio 112 72 64
Average deposits (in billions of dollars) $ 122 $ 113 $ 101 8 12
Net credit losses as a percentage of average loans 0.92% 0.99% 0.88%
Revenue by business
Retail banking $ 3,446 $4,374 $4,519 (21)% (3)%
Branded cards 2,153 2,218 2,908 (3) (24)
Total $ 5,599 $6,592 $7,427 (15)% (11)%
Income (loss) from continuing operations by business
Retail banking $ (812) $ 669 $1,010 NM (34)%
Branded cards 126 (201) 527 NM NM
Total $ (686) $ 468 $1,537 NM (70)%

Table continues on the next page including footnotes.

24
FX translation impact
Total revenues—as reported $ 5,599 $6,592 $7,427 (15)% (11)%
Impact of FX translation(2) — 112 89
Total revenues—ex-FX(3) $ 5,599 $6,704 $7,516 (16)% (11)%
Total operating expenses—as reported $ 6,254 $4,726 $4,733 32% —%
Impact of FX translation(2) — 83 52
Total operating expenses—ex-FX(3) $ 6,254 $4,809 $4,785 30% 1%
Provisions for credit losses—as reported $ 347 $1,311 $ 698 (74)% 88%
Impact of FX translation(2) — 21 7
Provisions for credit losses—ex-FX(3) $ 347 $1,332 $ 705 (74)% 89%
Net income (loss)—as reported $ (675) $ 472 $1,531 NM (69)%
Impact of FX translation(2) — 3 26
Net income (loss)—ex-FX(3) $ (675) $ 475 $1,557 NM (69)%

(1) Asia GCB includes the results of operations of GCB activities in certain EMEA countries for all periods presented.
(2) Reflects the impact of FX translation into U.S. dollars at the 2021 average exchange rates for all periods presented.
(3) Presentation of this metric excluding FX translation is a non-GAAP financial measure.
NM Not meaningful

The discussion of the results of operations for Asia GCB below excludes the impact of FX translation for all periods presented. Presentations of the results
of operations, excluding the impact of FX translation, are non-GAAP financial measures. For a reconciliation of certain of these metrics to the reported
results, see the table above.

2021 vs. 2020 Cards revenues decreased 5%, as lower average loans (down 14%,
Net loss was $675 million, compared to net income of $475 million in the including the reclassification to held-for-sale related to Australia and the
prior year. The net loss included the following items related to the 13 exit Philippines and higher payment rates) were partially offset by higher
markets: (i) approximately $1.1 billion (approximately $0.8 billion after- spending-related revenues (credit card spend volume up 8%), reflecting a
tax) related to charges incurred from the voluntary early retirement program continued recovery in sales activity from the pandemic-driven low levels in
(VERP) in connection with the wind-down of the Korea consumer banking the prior year.
business; (ii) an approximate $0.7 billion pretax loss ($0.6 billion after-tax) Expenses increased 30%, including approximately $1.2 billion of
related to the agreement to sell the Australia consumer banking business, costs related to the Asia divestitures. Excluding the costs related to the
largely reflecting the impact of a CTA loss (net of hedges); and (iii) contract Asia divestitures, expenses increased 6%, primarily driven by continued
modification costs related to the Asia divestitures of $119 million investments in Citi’s transformation, as well as business-led investments,
($98 million after-tax). partially offset by productivity savings.
Excluding the above items, net income was $807 million compared to net Provisions decreased 74%, primarily driven by a net ACL release compared
income of $475 million in the prior year, reflecting significantly lower cost of to a net ACL build in the prior year, as well as lower net credit losses. Net
credit, partially offset by higher expenses and lower revenues. credit losses decreased 10%, primarily reflecting lower cards loan volumes
Revenues decreased 16%, including the Australia loss on sale. Excluding and improved delinquencies.
the Australia loss on sale, revenues declined 6%, reflecting lower retail The net ACL release was $376 million, compared to a build of
banking and cards revenues, largely due to the continued impact of the $528 million in the prior year. The release reflected an improvement
pandemic, including lower interest rates. in portfolio credit quality. For additional information on Citi’s ACL, see
Retail banking revenues decreased 22%, including the Australia loss “Significant Accounting Policies and Significant Estimates” below.
on sale. Excluding the Australia loss on sale, revenues decreased 7%, as For additional information on Asia GCB’s retail banking portfolios and its
growth in both investment revenues and deposits was more than offset by branded cards portfolios, see “Credit Risk—Consumer Credit” below.
lower deposit spreads due to lower interest rates and lower FX and insurance For additional information about trends, uncertainties and risks related
revenues. Assets under management increased 3%, reflecting the impact of to Asia GCB’s future results, see “Executive Summary” above and “Risk
improved market conditions, as well as client engagement. Average deposits Factors—Strategic Risks” and “Significant Accounting Policies and
increased 6% and average loans decreased 2%. The decline in retail banking Significant Estimates” below.
revenues was also impacted by a 3% decrease in retail lending revenues,
reflecting a decline in personal loans driven by spread compression.

25
CORPORATE/OTHER
Activities not assigned to the operating segments (ICG and GCB) are included in Corporate/Other. As of December 31, 2021, Corporate/Other included
certain unallocated costs of global staff functions (including certain finance, risk, human resources, legal and compliance), other corporate expenses and
unallocated global operations and technology expenses and income taxes, as well as results of Corporate Treasury, certain North America legacy consumer loan
portfolios, discontinued operations and other legacy assets. For information on Citi’s planned revision to its reporting structure, including the reporting of the
North America legacy consumer loan portfolios, discontinued operations and other legacy assets as part of a new reporting segment, Legacy Franchises, see
“Strategic Refresh—Market Exits and Planned Revision to Reporting Structure” above. At December 31, 2021, Corporate/Other had $97 billion in assets.

% Change % Change
In millions of dollars 2021 2020 2019 2021 vs. 2020 2020 vs. 2019
Net interest income $ 659 $ (133) $1,898 NM NM
Non-interest revenue 8 204 124 (96)% 65%
Total revenues, net of interest expense $ 667 $ 71 $2,022 NM (96)%
Total operating expenses $1,645 $ 1,923 $1,783 (14)% 8%
Net credit losses (recoveries) on loans $ (83) $ (22) $ (8) NM NM
Credit reserve build (release) for loans (291) 188 (60) NM NM
Provision (release) for credit losses on unfunded lending commitments (11) 11 (7) NM NM
Provisions (releases) for benefits and claims, HTM debt securities and other assets 16 1 — 100% —%
Provisions (releases) for credit losses and for benefits and claims $ (369) $ 178 $ (75) NM NM
Income (loss) from continuing operations before taxes $ (609) $(2,030) $ 314 70% NM
Income taxes (benefits) (818) (921) (802) 11 (15)%
Income (loss) from continuing operations $ 209 $(1,109) $1,116 NM NM
(Loss) from discontinued operations, net of taxes 7 (20) (4) NM NM
Net income (loss) before attribution of noncontrolling interests $ 216 $(1,129) $1,112 NM NM
Noncontrolling interests 1 (6) 20 NM NM
Net income (loss) $ 215 $(1,123) $1,092 NM NM

NM Not meaningful

2021 vs. 2020 For additional information on Citi’s ACL, see “Significant Accounting
Net income was $215 million, compared to a net loss of $1.1 billion in the Policies and Significant Estimates” below.
prior year, reflecting higher revenues, lower expenses and lower cost of credit. For additional information about trends, uncertainties and risks related to
Revenues of $667 million compared to $71 million in the prior year, Corporate/Other’s future results, see “Executive Summary” above and “Risk
primarily driven by higher net revenue from the investment portfolio. Factors—Strategic Risks” below.
Expenses decreased 14%, reflecting the absence of a civil money penalty in
the prior year and the wind-down of legacy assets, partially offset by increases
related to Citi’s transformation.
Provisions reflected a net benefit of $369 million, compared to costs
of $178 million in the prior year, primarily driven by a net ACL release in
the current year ($286 million compared to a net build of $200 million
in the prior year). The release reflected the continued improvement in the
macroeconomic outlook.

26
CAPITAL RESOURCES
Overview Current Regulatory Capital Standards
Capital is used principally to support assets in Citi’s businesses and to Citi is subject to regulatory capital standards issued by the Federal Reserve
absorb credit, market and operational losses. Citi primarily generates capital Board, which constitute the U.S. Basel III rules. These rules establish an
through earnings from its operating businesses. Citi may augment its integrated capital adequacy framework, encompassing both risk-based
capital through issuances of common stock and noncumulative perpetual capital ratios and leverage ratios.
preferred stock, among other issuances. Further, Citi’s capital levels may
also be affected by changes in accounting and regulatory standards, as well Risk-Based Capital Ratios
as U.S. corporate tax laws and the impact of future events on Citi’s business The U.S. Basel III rules set forth the composition of regulatory capital
results, such as changes in interest and foreign exchange rates, as well as (including the application of regulatory capital adjustments and deductions),
business and asset dispositions. For additional information on capital-related as well as two comprehensive methodologies (a Standardized Approach and
trends, uncertainties and risks related to Citi’s legacy and exit businesses, Advanced Approaches) for measuring total risk-weighted assets.
including the impact of CTA losses, see “Executive Summary” above and Total risk-weighted assets under the Advanced Approaches, which are
“Risk Factors—Strategic Risks” and “—Operational Risks” below. primarily models based, include credit, market and operational risk-weighted
During 2021, Citi returned a total of $11.8 billion of capital to common assets. The Standardized Approach generally applies prescribed supervisory
shareholders in the form of $4.2 billion in dividends and $7.6 billion in share risk weights to broad categories of credit risk exposures. As a result, credit
repurchases totaling approximately 105 million common shares. risk-weighted assets calculated under the Advanced Approaches are more risk
sensitive than those calculated under the Standardized Approach. Market
Capital Management risk-weighted assets are currently calculated on a generally consistent basis
Citi’s capital management framework is designed to ensure that Citigroup under both approaches. The Standardized Approach excludes operational
and its principal subsidiaries maintain sufficient capital consistent with risk-weighted assets.
each entity’s respective risk profile, management targets and all applicable Under the U.S. Basel III rules, both Citi and Citibank, N.A. (Citibank)
regulatory standards and guidelines. Citi assesses its capital adequacy are required to maintain stated minimum Common Equity Tier 1 Capital,
against a series of internal quantitative capital goals, designed to evaluate its Tier 1 Capital and Total Capital ratios of 4.5%, 6.0% and 8.0%, respectively.
capital levels in expected and stressed economic environments. Underlying Further, the U.S. Basel III rules implement the “capital floor provision” of
these internal quantitative capital goals are strategic capital considerations, the so-called “Collins Amendment” of the Dodd-Frank Act, which requires
centered on preserving and building financial strength. Advanced Approaches banking organizations to calculate each of the three
The Citigroup Capital Committee, with oversight from the Risk risk-based capital ratios (Common Equity Tier 1 Capital, Tier 1 Capital and
Management Committee of Citigroup’s Board of Directors, has responsibility Total Capital) under both the U.S. Basel III Standardized Approach and
for Citi’s aggregate capital structure, including the capital assessment the Advanced Approaches and comply with the more binding of each of the
and planning process, which is integrated into Citi’s capital plan. Balance resulting risk-based capital ratios.
sheet management, including oversight of capital adequacy, for Citigroup’s
subsidiaries is governed by each entity’s Asset and Liability Committee, where Tier 1 Leverage Ratio
applicable. Under the U.S. Basel III rules, Citi is also required to maintain a minimum
For additional information regarding Citi’s capital planning and stress Tier 1 Leverage ratio of 4.0%. The Tier 1 Leverage ratio, a non-risk-based
testing exercises, see “Stress Testing Component of Capital Planning” below. measure of capital adequacy, is defined as Tier 1 Capital as a percentage
of quarterly adjusted average total assets less amounts deducted from
Tier 1 Capital.

27
Supplementary Leverage Ratio cumulative 25% change in CECL-based allowances between January 1, 2020
Citi is also required to calculate a Supplementary Leverage ratio, which and December 31, 2021 will be phased in to regulatory capital (i) at 25%
differs from the Tier 1 Leverage ratio by also including certain off-balance per year on January 1 of each year over the three-year transition period, and
sheet exposures within the denominator of the ratio (Total Leverage (ii) along with the delayed “Day One” impact.
Exposure). The Supplementary Leverage ratio represents end-of-period Tier Citigroup and Citibank elected the modified CECL transition provision
1 Capital to Total Leverage Exposure, with the latter defined as the sum of provided by the rule beginning with the quarter ended March 31, 2020.
the daily average of on-balance sheet assets for the quarter and the average Accordingly, the Day One regulatory capital effects resulting from adoption
of certain off-balance sheet exposures calculated as of the last day of each of the CECL methodology, as well as the ongoing adjustments for 25% of the
month in the quarter, less applicable Tier 1 Capital deductions. Advanced change in CECL-based allowances in each quarter between January 1, 2020
Approaches banking organizations are required to maintain a stated and December 31, 2021, started to be phased in on January 1, 2022 and will
minimum Supplementary Leverage ratio of 3.0%. be fully reflected in Citi’s regulatory capital as of January 1, 2025.
Further, U.S. GSIBs, including Citi, are subject to enhanced As of December 31, 2021, Citigroup’s reported Common Equity Tier 1
Supplementary Leverage ratio standards. These enhanced standards Capital ratio of 12.2% benefited from the deferrals of the CECL transition
establish a 2.0% leverage buffer in addition to the stated 3.0% minimum provision by 24 basis points (bps), which resulted in an approximate 6
Supplementary Leverage ratio requirement, for a total effective minimum bps decrease to Citigroup’s Common Equity Tier 1 Capital ratio upon
Supplementary Leverage ratio requirement of 5.0%. If a U.S. GSIB fails to commencement of the phase-in on January 1, 2022. In addition, this
exceed this requirement, it will be subject to increasingly onerous restrictions phase-in is expected to result in an additional 6 bps decrease to Citigroup’s
(depending upon the extent of the shortfall) regarding capital distributions Common Equity Tier 1 Capital ratio on January 1 of each year through
and discretionary executive bonus payments. January 1, 2025. For additional information on Citigroup’s and Citibank’s
regulatory capital ratios excluding the impact of the CECL transition
Temporary Supplementary Leverage Ratio Relief provision, see “Capital Resources (Full Adoption of CECL)” below.
In April 2020, the Federal Reserve Board issued an interim final rule that
temporarily changed the calculation of the Supplementary Leverage ratio for TLAC Holdings
bank holding companies, including Citigroup, by excluding U.S. Treasuries As previously disclosed, in January 2021, the U.S. banking agencies issued
and deposits at Federal Reserve Banks from Total Leverage Exposure. a final rule that created a new regulatory capital deduction applicable to
The interim final rule was effective for Citigroup’s Supplementary Advanced Approaches banking organizations for certain investments in
Leverage ratio, as well as for Citigroup’s leverage-based total loss absorbing covered debt instruments issued by GSIBs. The final rule became effective
capacity (TLAC) and long-term debt (LTD) requirements, and expired as for Citigroup and Citibank on April 1, 2021, and did not have a significant
scheduled on March 31, 2021. Citigroup’s reported Supplementary Leverage impact on either Citigroup’s or Citibank’s regulatory capital.
ratio of 7.0% during the fourth quarter of 2020 benefited 109 basis points, as
a result of the temporary relief. Regulatory Capital Buffers
Citi and Citibank are required to maintain several regulatory capital buffers
Regulatory Capital Treatment—Modified Transition of the above stated minimum capital requirements. These capital buffers would
Current Expected Credit Losses Methodology be available to absorb losses in advance of any potential impairment
In September 2020, the U.S. banking agencies issued a final rule of regulatory capital below the stated minimum regulatory capital
(substantially unchanged from a March 2020 interim final rule) that ratio requirements.
modified the regulatory capital transition provision related to the current Banking organizations that fall below their regulatory capital buffers
expected credit losses (CECL) methodology. The September 2020 final rule are subject to limitations on capital distributions and discretionary bonus
does not have any impact on U.S. GAAP accounting. payments to executive officers based on a percentage of “Eligible Retained
The final rule permitted banks to delay for two years the “Day One” Income” (ERI), with increasing restrictions based upon the severity of
adverse regulatory capital effects resulting from adoption of the CECL the breach. ERI is equal to the greater of (i) the bank’s net income for the
methodology on January 1, 2020 until January 1, 2022, followed by a four calendar quarters preceding the current calendar quarter, net of any
three-year transition to phase out the regulatory capital benefit provided by distributions and tax effects not already reflected in net income, and (ii) the
the delay. average of the bank’s net income for the four calendar quarters preceding the
In addition, for the ongoing impact of CECL, the agencies utilized a 25% current calendar quarter.
scaling factor as an approximation of the increased reserve build under As of December 31, 2021, Citi’s regulatory capital ratios exceeded effective
CECL compared to the previous incurred loss model and, therefore, allowed regulatory minimum requirements. Accordingly, Citi is not subject to payout
banks to add back to Common Equity Tier 1 Capital an amount equal limitations as a result of Basel III requirements.
to 25% of the change in CECL-based allowances in each quarter between
January 1, 2020 and December 31, 2021. Beginning January 1, 2022, the

28
Stress Capital Buffer calculated under both method 1 and method 2 are based on measures of
Citigroup is subject to the Federal Reserve Board’s Stress Capital Buffer systemic importance from the year immediately preceding that in which
(SCB) rule, which integrates the annual stress testing requirements with the GSIB surcharge calculations are being performed (e.g., the method 1
ongoing regulatory capital requirements. The SCB equals the peak-to-trough and method 2 GSIB surcharges calculated during 2021 will be based on
Common Equity Tier 1 Capital ratio decline under the Supervisory Severely 2020 systemic indicator data). Generally, Citi’s surcharge determined under
Adverse scenario used in the Comprehensive Capital Analysis and Review method 2 will result in a higher surcharge than its surcharge determined
(CCAR) and Dodd-Frank Act Stress Testing (DFAST), plus four quarters of under method 1.
planned common stock dividends, subject to a floor of 2.5%. SCB-based Should a GSIB’s systemic importance increase for more than one
minimum capital requirements will be reviewed and updated annually year, such that it becomes subject to a higher GSIB surcharge, the higher
by the Federal Reserve Board as part of the CCAR process. For additional surcharge would not become effective for a full year after the second
information regarding CCAR and DFAST, see “Stress Testing Component consecutive higher score (e.g., a higher surcharge calculated using data as of
of Capital Planning” below. The fixed 2.5% Capital Conservation Buffer December 31, 2020 and December 30, 2021 would not become effective until
(for additional information, see below) will continue to apply under the January 1, 2023). However, if after two consecutive years of a higher score, a
Advanced Approaches. GSIB’s systemic importance changes such that the GSIB would be subject to
In August 2021, the Federal Reserve Board finalized and announced Citi’s a lower surcharge, the GSIB would be subject to the lower surcharge in the
SCB requirement of 3.0%. Accordingly, effective October 1, 2021, Citigroup calendar year commencing one year later (e.g., a lower surcharge calculated
is required to maintain a 10.5% effective minimum Common Equity Tier 1 using data as of December 31, 2022 would become effective January 1, 2024).
Capital ratio under the Standardized Approach. Previously, from October 1, The following table sets forth Citi’s effective GSIB surcharge as determined
2020 through September 30, 2021, Citi had been subject to a 2.5% SCB, and under method 1 and method 2 during 2021 and 2020:
a 10.0% effective minimum Common Equity Tier 1 Capital ratio under the
Standardized Approach.
2021 2020
Capital Conservation Buffer and Countercyclical Method 1 2.0% 2.0%
Capital Buffer
Method 2 3.0 3.0
Citigroup is subject to a fixed 2.5% Capital Conservation Buffer under
the Advanced Approaches. Citibank is subject to the fixed 2.5% Capital Citi’s GSIB surcharge effective during both 2021 and 2020 was 3.0%, as
Conservation Buffer under both the Advanced Approaches and the derived under the higher method 2 result. Citi’s GSIB surcharge effective
Standardized Approach. for 2022 will remain unchanged at 3.0%, as derived under the higher
In addition, Advanced Approaches banking organizations, such as method 2 result.
Citigroup and Citibank, are subject to a discretionary Countercyclical Capital Citi expects that its method 2 GSIB surcharge will continue to remain
Buffer. The Federal Reserve Board last voted to affirm the Countercyclical higher than its method 1 GSIB surcharge. Accordingly, based on Citi’s
Capital Buffer amount at the current level of 0% in December 2020. method 2 result as of December 31, 2020, and its estimated method 2 result
GSIB Surcharge as of December 31, 2021, Citi’s GSIB surcharge is expected to increase to 3.5%
The Federal Reserve Board imposes a risk-based capital surcharge upon effective January 1, 2023. Citi’s GSIB surcharge effective for 2024 will likely
U.S. bank holding companies that are identified as global systemically be based on the lower of its method 2 scores for year-end 2021 and 2022, and
important bank holding companies (GSIBs), including Citi. The GSIB therefore is not expected to exceed 3.5%.
surcharge augments the SCB, Capital Conservation Buffer and, if invoked, Prompt Corrective Action Framework
any Countercyclical Capital Buffer. In general, the Prompt Corrective Action (PCA) regulations direct the U.S.
A U.S. bank holding company that is designated a GSIB is required, on an banking agencies to enforce increasingly strict limitations on the activities
annual basis, to calculate a surcharge using two methods and is subject to of insured depository institutions that fail to meet certain regulatory capital
the higher of the resulting two surcharges. The first method (“method 1”) is thresholds. The PCA framework contains five categories of capital adequacy
based on the Basel Committee’s GSIB methodology. Under the second method as measured by risk-based capital and leverage ratios: (i) “well capitalized,”
(“method 2”), the substitutability category under the Basel Committee’s (ii) “adequately capitalized,” (iii) “undercapitalized,” (iv) “significantly
GSIB methodology is replaced with a quantitative measure intended to assess undercapitalized” and (v) “critically undercapitalized.”
a GSIB’s reliance on short-term wholesale funding. In addition, method 1 Accordingly, an insured depository institution, such as Citibank, must
incorporates relative measures of systemic importance across certain global maintain minimum Common Equity Tier 1 Capital, Tier 1 Capital, Total
banking organizations and a year-end spot foreign exchange rate, whereas Capital and Tier 1 Leverage ratios of 6.5%, 8.0%, 10.0% and 5.0%, respectively,
method 2 uses fixed measures of systemic importance and application of an to be considered “well capitalized.” In addition, insured depository institution
average foreign exchange rate over a three-year period. The GSIB surcharges subsidiaries of U.S. GSIBs, including Citibank, must maintain a minimum

29
Supplementary Leverage ratio of 6.0% to be considered “well capitalized.” Both CCAR and DFAST include an estimate of projected revenues, losses,
Citibank was “well capitalized” as of December 31, 2021. reserves, pro forma regulatory capital ratios, and any other additional capital
Furthermore, to be “well capitalized” under current federal bank measures deemed relevant by Citi. Projections are required over a nine-
regulatory agency definitions, a bank holding company must have a Tier 1 quarter planning horizon under two supervisory scenarios (baseline and
Capital ratio of at least 6.0%, a Total Capital ratio of at least 10.0% and not be severely adverse conditions). All risk-based capital ratios reflect application of
subject to a Federal Reserve Board directive to maintain higher capital levels. the Standardized Approach framework under the U.S. Basel III rules.
In addition, Citibank is required to conduct the annual Dodd-Frank Act
Stress Testing Component of Capital Planning Stress Test. The annual stress test consists of a forward-looking quantitative
Citi is subject to an annual assessment by the Federal Reserve Board as evaluation of the impact of stressful economic and financial market
to whether Citigroup has effective capital planning processes as well as conditions under several scenarios on Citibank’s regulatory capital. This
sufficient regulatory capital to absorb losses during stressful economic program serves to inform the Office of the Comptroller of the Currency as to
and financial conditions, while also meeting obligations to creditors and how Citibank’s regulatory capital ratios might change during a hypothetical
counterparties and continuing to serve as a credit intermediary. This annual set of adverse economic conditions and to ultimately evaluate the reliability
assessment includes two related programs: the Comprehensive Capital of Citibank’s capital planning process.
Analysis and Review (CCAR) and Dodd-Frank Act Stress Testing (DFAST). Citigroup and Citibank are required to disclose the results of their
For the largest and most complex firms, such as Citi, CCAR includes a company-run stress tests.
qualitative evaluation of a firm’s abilities to determine its capital needs on a
forward-looking basis. In conducting the qualitative assessment, the Federal Temporary Federal Reserve Board Limitations on
Reserve Board evaluates firms’ capital planning practices, focusing on six Capital Distributions
areas of capital planning—namely, governance, risk management, internal From the third quarter of 2020 to the second quarter of 2021, the Federal
controls, capital policies, incorporating stressful conditions and events, and Reserve Board placed temporary limitations on capital distributions for
estimating impact on capital positions. As part of the CCAR process, the Citi and other large banking organizations, to ensure that large banks
Federal Reserve Board evaluates Citi’s capital adequacy, capital adequacy maintained a high level of capital resilience throughout the COVID-19
process and its planned capital distributions, such as dividend payments and pandemic. Commencing July 1, 2021, Citi’s common stock dividends and
common share repurchases. The Federal Reserve Board assesses whether Citi share repurchases were no longer subject to limitations based on the average
has sufficient capital to continue operations throughout times of economic of Citi’s net income for the four preceding calendar quarters.
and financial market stress and whether Citi has robust, forward-looking All large banks, including Citi, remain subject to limitations on capital
capital planning processes that account for its unique risks. distributions in the event of a breach of any regulatory capital buffers,
All CCAR firms, including Citi, are subject to a rigorous evaluation of including the Stress Capital Buffer, with the degree of such restrictions
their capital planning process. Firms with weak practices may be subject based on the extent to which the buffers are breached. For additional
to a deficient supervisory rating, and potentially an enforcement action, information, see “Regulatory Capital Buffers” above, and “Risk Factors—
for failing to meet supervisory expectations. For additional information Strategic Risks” below.
regarding CCAR, see “Risk Factors—Strategic Risks” below.
DFAST is a forward-looking quantitative evaluation of the impact of
stressful economic and financial market conditions on Citi’s regulatory
capital. This program serves to inform the Federal Reserve Board and the
general public as to how Citi’s regulatory capital ratios might change using
a hypothetical set of adverse economic conditions as designed by the Federal
Reserve Board. In addition to the annual supervisory stress test conducted by
the Federal Reserve Board, Citi is required to conduct annual company-run
stress tests under the same adverse economic conditions designed by the
Federal Reserve Board.

30
Citigroup’s Capital Resources
The following table sets forth Citi’s effective minimum risk-based capital requirements as of December 31, 2021, September 30, 2021 and December 31, 2020:

Advanced Approaches Standardized Approach

Dec. 31, Sept. 30, Dec. 31, Dec. 31, Sept. 30, Dec. 31,
2021 2021 2020 2021 2021 2020
Common Equity Tier 1 Capital ratio(1) 10.0% 10.0% 10.0% 10.5% 10.0% 10.0%
Tier 1 Capital ratio(1) 11.5 11.5 11.5 12.0 11.5 11.5
Total Capital ratio(1) 13.5 13.5 13.5 14.0 13.5 13.5

(1) Beginning October 1, 2021, Citi’s effective minimum risk-based capital requirements include the 3.0% SCB and 3.0% GSIB surcharge under the Standardized Approach, and the 2.5% Capital Conservation Buffer and
3.0% GSIB surcharge under the Advanced Approaches (all of which must be composed of Common Equity Tier 1 Capital). For prior periods presented, Citi’s effective minimum risk-based capital requirements included
a 2.5% SCB and 3.0% GSIB surcharge under the Standardized Approach, and the 2.5% Capital Conservation Buffer and 3.0% GSIB surcharge under the Advanced Approaches.

The following tables set forth Citi’s capital components and ratios as of December 31, 2021, September 30, 2021 and December 31, 2020:

Advanced Approaches(5) Standardized Approach(5)

Dec. 31, Sept. 30, Dec. 31, Dec. 31, Sept. 30, Dec. 31,
In millions of dollars, except ratios 2021 2021 2020 2021 2021 2020
Common Equity Tier 1 Capital(1) $ 149,305 $ 149,631 $ 147,274 $ 149,305 $ 149,631 $ 147,274
Tier 1 Capital 169,568 168,902 167,053 169,568 168,902 167,053
Total Capital (Tier 1 Capital + Tier 2 Capital)(1) 194,006 194,423 196,051 203,838 204,288 205,002
Total Risk-Weighted Assets 1,209,374 1,265,297 1,278,977 1,219,175 1,284,316 1,242,381
Credit Risk(1) $ 840,483 $ 871,668 $ 859,698 $1,135,906 $1,187,516 $1,121,871
Market Risk 78,634 93,376 116,181 83,269 96,800 120,510
Operational Risk 290,257 300,253 303,098 — — —
Common Equity Tier 1 Capital ratio(2) 12.35% 11.83% 11.51% 12.25% 11.65% 11.85%
Tier 1 Capital ratio(2) 14.02 13.35 13.06 13.91 13.15 13.45
Total Capital ratio(2) 16.04 15.37 15.33 16.72 15.91 16.50

Effective Minimum
In millions of dollars, except ratios Requirement Dec. 31, 2021 Sept. 30, 2021 Dec. 31, 2020
Quarterly Adjusted Average Total Assets(1)(3) $2,351,434 $2,311,830 $2,265,615
Total Leverage Exposure(1)(4) 2,957,764 2,911,050 2,391,033
Tier 1 Leverage ratio 4.0% 7.21% 7.31% 7.37%
Supplementary Leverage ratio 5.0 5.73 5.80 6.99

(1) Citi has elected to apply the modified transition provision related to the impact of the CECL accounting standard on regulatory capital, as provided by the U.S. banking agencies’ September 2020 final rule. Under
the modified CECL transition provision, the changes in retained earnings (after-tax), deferred tax assets (DTAs) arising from temporary differences, and the ACL upon the January 1, 2020 CECL adoption date were
deferred and have commenced phase-in to regulatory capital at 25% per year beginning January 1, 2022. For the ongoing impact of CECL, Citigroup was allowed to adjust retained earnings and the ACL in an
amount equal to 25% of the change in the ACL (pretax) for each period between January 1, 2020 and December 31, 2021. The cumulative adjustments to retained earnings and the ACL between January 1, 2020
and December 31, 2021 commenced phase-in to regulatory capital at 25% per year beginning January 1, 2022, along with the deferred impacts related to the January 1, 2020 CECL adoption date. Corresponding
adjustments to average on-balance sheet assets are reflected in quarterly adjusted average total assets and Total Leverage Exposure. Additionally, the increase in DTAs arising from temporary differences upon the
January 1, 2020 adoption date were deducted from risk-weighted assets (RWA) and commenced phase-in to RWA at 25% per year beginning January 1, 2022.
(2) Citi’s reportable Common Equity Tier 1 Capital and Tier 1 Capital ratios were derived under the Basel III Standardized Approach as of December 31, 2021 and September 30, 2021, and under the Basel III Advanced
Approaches framework as of December 31, 2020, whereas Citi’s reportable Total Capital ratio was the lower derived under the Basel III Advanced Approaches framework for all periods presented.
(3) Tier 1 Leverage ratio denominator. Represents quarterly average total assets less amounts deducted from Tier 1 Capital.
(4) Supplementary Leverage ratio denominator. Commencing with the second quarter of 2020 and continuing through the first quarter of 2021, Citigroup’s Total Leverage Exposure temporarily excluded U.S. Treasuries and
deposits at Federal Reserve Banks. For additional information, see “Temporary Supplementary Leverage Ratio Relief” above.
(5) Certain of the above prior-period amounts have been revised to conform with enhancements made in the current period.

31
Common Equity Tier 1 Capital Ratio increased from year-end 2020, largely driven by net income of $22.0 billion,
As set forth in the table above, Citi’s Common Equity Tier 1 Capital ratio a net decrease in risk-weighted assets and a temporary pause in common
at December 31, 2021 increased from September 30, 2021, primarily due share repurchases in the fourth quarter of 2021 in preparation for the
to a decrease in risk-weighted assets and a temporary pause in common implementation of SA-CCR, partially offset by the return of $11.8 billion
share repurchases in the fourth quarter of 2021 in preparation for the of capital to common shareholders in the form of share repurchases and
implementation of the Standardized Approach for Counterparty Credit Risk dividends, as well as adverse net movements in AOCI.
(SA-CCR) on January 1, 2022. Citi’s Common Equity Tier 1 Capital ratio

Components of Citigroup Capital

December 31, December 31,

In millions of dollars 2021 2020
Common Equity Tier 1 Capital
Citigroup common stockholders’ equity(1) $183,108 $180,118
Add: Qualifying noncontrolling interests 143 141
Regulatory capital adjustments and deductions:
Add: CECL transition and 25% provision deferral(2) 3,028 5,348
Less: Accumulated net unrealized gains (losses) on cash flow hedges, net of tax 101 1,593
Less: Cumulative unrealized net gain (loss) related to changes in fair value of financial liabilities
attributable to own creditworthiness, net of tax (896) (1,109)
Less: Intangible assets:
Goodwill, net of related DTLs(3) 20,619 21,124
Identifiable intangible assets other than MSRs, net of related DTLs 3,800 4,166
Less: Defined benefit pension plan net assets; other 2,080 921
Less: DTAs arising from net operating loss, foreign tax credit and general business credit carry-forwards(4) 11,270 11,638
Total Common Equity Tier 1 Capital (Standardized Approach and Advanced Approaches) $149,305 $147,274
Additional Tier 1 Capital
Qualifying noncumulative perpetual preferred stock(1) $ 18,864 $ 19,324
Qualifying trust preferred securities(5) 1,399 1,393
Qualifying noncontrolling interests 34 35
Regulatory capital deductions:
Less: Permitted ownership interests in covered funds(6) — 917
Less: Other 34 56
Total Additional Tier 1 Capital (Standardized Approach and Advanced Approaches) $ 20,263 $ 19,779
Total Tier 1 Capital (Common Equity Tier 1 Capital + Additional Tier 1 Capital)
(Standardized Approach and Advanced Approaches) $169,568 $167,053
Tier 2 Capital
Qualifying subordinated debt $ 20,064 $ 23,481
Qualifying trust preferred securities(7) 248 331
Qualifying noncontrolling interests 42 41
Eligible allowance for credit losses(2)(8) 14,209 14,127
Regulatory capital deduction:
Less: Other 293 31
Total Tier 2 Capital (Standardized Approach) $ 34,270 $ 37,949
Total Capital (Tier 1 Capital + Tier 2 Capital) (Standardized Approach) $203,838 $205,002
Adjustment for excess of eligible credit reserves over expected credit losses(2)(8)
$ (9,832) $ (8,951)
Total Tier 2 Capital (Advanced Approaches) $ 24,438 $ 28,998
Total Capital (Tier 1 Capital + Tier 2 Capital) (Advanced Approaches) $194,006 $196,051

Footnotes continue on the following page.

32
(1) Issuance costs of $131 million and $156 million related to noncumulative perpetual preferred stock outstanding at December 31, 2021 and 2020, respectively, are excluded from common stockholders’ equity and
netted against such preferred stock in accordance with Federal Reserve Board regulatory reporting requirements, which differ from those under U.S. GAAP.
(2) Citi has elected to apply the modified transition provision related to the impact of the CECL accounting standard on regulatory capital, as provided by the U.S. banking agencies’ September 2020 final rule. Under the
modified CECL transition provision, the changes in retained earnings (after-tax) and the ACL upon the January 1, 2020 CECL adoption date were deferred and commenced phase-in to regulatory capital at 25% per
year beginning January 1, 2022. For the ongoing impact of CECL, Citigroup was allowed to adjust retained earnings and the ACL in an amount equal to 25% of the change in the ACL (pretax) for each period between
January 1, 2020 and December 31, 2021. The cumulative adjustments to retained earnings and the ACL between January 1, 2020 and December 31, 2021 have also commenced phase in to regulatory capital at
25% per year beginning January 1, 2022, along with the deferred impacts related to the January 1, 2020 CECL adoption date.
(3) Includes goodwill “embedded” in the valuation of significant common stock investments in unconsolidated financial institutions.
(4) Of Citi’s $24.8 billion of net DTAs at December 31, 2021, $15.3 billion was included in Common Equity Tier 1 Capital pursuant to the U.S. Basel III rules, while $9.5 billion was excluded. Excluded from Citi’s Common
Equity Tier 1 Capital as of December 31, 2021 was $11.3 billion of net DTAs arising from net operating loss, foreign tax credit and general business credit tax carry-forwards. The amount excluded was reduced by
$1.8 billion of net DTLs primarily associated with goodwill and certain other intangible assets that are separately deducted from capital. DTAs arising from tax carry-forwards are required to be entirely deducted from
Common Equity Tier 1 Capital under the U.S. Basel III rules. DTAs arising from temporary differences are required to be deducted from capital only if these DTAs exceed 10%/15% limitation under the U.S. Basel III
rules. Citi’s DTAs do not currently exceed this limitation and, therefore, are not subject to deduction from Common Equity Tier 1 Capital, but are subject to risk weighting at 250%.
(5) Represents Citigroup Capital XIII trust preferred securities, which are permanently grandfathered as Tier 1 Capital under the U.S. Basel III rules.
(6) Banking entities are required to be in compliance with the Volcker Rule of the Dodd-Frank Act, which prohibits conducting certain proprietary investment activities and limits their ownership of, and relationships with,
covered funds. Commencing January 1, 2021, Citi no longer deducts permitted market-making positions in third-party covered funds from Tier 1 Capital, in accordance with the revised Volcker Rule 2.0 issued by the
U.S. agencies in November 2019. Upon the removal of the capital deduction, permitted market-making positions in third-party covered funds are included in risk-weighted assets.
(7) Represents the amount of non-grandfathered trust preferred securities that were previously eligible for inclusion in Tier 2 Capital under the U.S. Basel III rules. Commencing January 1, 2022, non-grandfathered trust
preferred securities have been fully phased out of Tier 2 Capital.
(8) Under the Standardized Approach, the allowance for credit losses is eligible for inclusion in Tier 2 Capital up to 1.25% of credit risk-weighted assets, with any excess allowance for credit losses being deducted in
arriving at credit risk-weighted assets, which differs from the Advanced Approaches framework, in which eligible credit reserves that exceed expected credit losses are eligible for inclusion in Tier 2 Capital to the extent
that the excess reserves do not exceed 0.6% of credit risk-weighted assets. The total amount of eligible credit reserves in excess of expected credit losses that were eligible for inclusion in Tier 2 Capital, subject to
limitation, under the Advanced Approaches framework was $4.4 billion and $5.2 billion at December 30, 2021 and December 31, 2020, respectively.

33
Citigroup Capital Rollforward

Three months ended Twelve months ended

In millions of dollars December 31, 2021 December 31, 2021
Common Equity Tier 1 Capital, beginning of period $149,631 $147,274
Net income 3,173 21,952
Common and preferred dividends declared (1,249) (5,236)
Net change in treasury stock 6 (7,111)
Net increase in common stock and additional paid-in capital 87 132
Net change in foreign currency translation adjustment net of hedges, net of tax (462) (2,525)
Net change in unrealized gains (losses) on debt securities AFS, net of tax (1,396) (3,934)
Net decrease in defined benefit plans liability adjustment, net of tax 76 1,012
Net change in adjustment related to change in fair value of financial liabilities
attributable to own creditworthiness, net of tax (3) 19
Net decrease in excluded component of fair value hedges 12 —
Net decrease in goodwill, net of related DTLs 70 505
Net decrease in identifiable intangible assets other than MSRs, net of related DTLs 99 366
Net increase in defined benefit pension plan net assets (133) (936)
Net change in DTAs arising from net operating loss, foreign tax credit and
general business credit carry-forwards (373) 368
Net decrease in CECL 25% provision deferral (361) (2,320)
Other 128 (261)
Net change in Common Equity Tier 1 Capital $ (326) $ 2,031
Common Equity Tier 1 Capital, end of period
(Standardized Approach and Advanced Approaches) $149,305 $149,305

Additional Tier 1 Capital, beginning of period $ 19,271 $ 19,779

Net change in qualifying perpetual preferred stock 994 (460)
Net increase in qualifying trust preferred securities 1 6
Net decrease in permitted ownership interests in covered funds — 917
Other (3) 21
Net increase in Additional Tier 1 Capital $ 992 $ 484
Tier 1 Capital, end of period
(Standardized Approach and Advanced Approaches) $169,568 $169,568

Tier 2 Capital, beginning of period (Standardized Approach) $ 35,386 $ 37,949

Net decrease in qualifying subordinated debt (392) (3,417)
Net change in eligible allowance for credit losses (651) 82
Other (73) (344)
Net decrease in Tier 2 Capital (Standardized Approach) $ (1,116) $ (3,679)
Tier 2 Capital, end of period (Standardized Approach) $ 34,270 $ 34,270
Total Capital, end of period (Standardized Approach) $203,838 $203,838

Tier 2 Capital, beginning of period (Advanced Approaches) $ 25,521 $ 28,998

Net decrease in qualifying subordinated debt (392) (3,417)
Net decrease in excess of eligible credit reserves over expected credit losses (618) (799)
Other (73) (344)
Net decrease in Tier 2 Capital (Advanced Approaches) $ (1,083) $ (4,560)
Tier 2 Capital, end of period (Advanced Approaches) $ 24,438 $ 24,438
Total Capital, end of period (Advanced Approaches) $194,006 $194,006

34
Citigroup Risk-Weighted Assets Rollforward (Basel III Standardized Approach)

Three months ended Twelve months ended

In millions of dollars December 31, 2021 December 31, 2021
Total Risk-Weighted Assets, beginning of period $1,284,316 $1,242,381
Changes in Credit Risk-Weighted Assets
General credit risk exposures (1,475) (1,775)
Repo-style transactions(1) (15,160) (9,737)
Securitization exposures(2) (1,306) 3,593
Equity exposures (340) 494
Over-the-counter (OTC) derivatives(3) (22,954) 3,224
Other exposures(4) (7,167) 15,112
Off-balance sheet exposures (3,208) 3,124
Net change in Credit Risk-Weighted Assets $ (51,610) $ 14,035
Changes in Market Risk-Weighted Assets
Risk levels $ (4,108) $ (21,499)
Model and methodology updates (9,423) (15,742)
Net decrease in Market Risk-Weighted Assets(5) $ (13,531) $ (37,241)
Total Risk-Weighted Assets, end of period $1,219,175 $1,219,175

(1) Repo-style transactions include repurchase and reverse repurchase transactions as well as securities borrowing and securities lending transactions. Repo-style transactions decreased during the three months and
12 months ended December 31, 2021, primarily due to exposure-driven decreases.
(2) Securitization exposures increased during the 12 months ended December 31, 2021, primarily due to increases in new deals.
(3) OTC derivatives decreased during the three months ended December 31, 2021, primarily due to decreases in mark-to-market and notional movement. OTC derivatives increased during the 12 months ended
December 31, 2021, primarily due to increases in mark-to-market for bilateral derivatives.
(4) Other exposures include cleared transactions, unsettled transactions, and other assets. Other exposures decreased during the three months ended December 31, 2021 primarily due to decreases in cleared
transactions. Other exposures increased during the 12 months ended December 31, 2021 primarily due to increases in various other assets.
(5) Market risk-weighted assets decreased during the three months and 12 months ended December 31, 2021, primarily due to exposure changes.

35
Citigroup Risk-Weighted Assets Rollforward (Basel III Advanced Approaches)

Three months ended Twelve months ended

In millions of dollars December 31, 2021 December 31, 2021
Total Risk-Weighted Assets, beginning of period $1,265,297 $1,278,977
Changes in Credit Risk-Weighted Assets
Retail exposures(1) (8,043) (13,426)
Wholesale exposures(2) (8,408) (10,630)
Repo-style transactions 2,516 (3,861)
Securitization exposures(3) 528 5,816
Equity exposures (253) 206
Over-the-counter (OTC) derivatives(4) (8,465) (510)
Derivatives CVA(5) (5,988) (2,715)
Other exposures(6) (1,646) 7,003
Supervisory 6% multiplier (1,426) (1,098)
Net decrease in Credit Risk-Weighted Assets $ (31,185) $ (19,215)
Changes in Market Risk-Weighted Assets
Risk levels $ (5,320) $ (21,805)
Model and methodology updates (9,422) (15,742)
Net decrease in Market Risk-Weighted Assets(7) $ (14,742) $ (37,547)
Net decrease in Operational Risk-Weighted Assets(8) $ (9,996) $ (12,841)
Total Risk-Weighted Assets, end of period $1,209,374 $1,209,374

(1) Retail exposures decreased during the three months ended December 31, 2021, primarily driven by model recalibrations. Retail exposures decreased during the 12 months ended December 31, 2021, primarily driven
by seasonal holiday spending repayments, less spending on qualifying revolving (card) exposures and model recalibrations.
(2) Wholesale exposures decreased during the three months and 12 months ended December 31, 2021, primarily due to reductions in commercial loans and wholesale loan commitments.
(3) Securitization exposures increased during the 12 months ended December 31, 2021, primarily due to increases in new deals.
(4) OTC derivatives decreased during the three months ended December 31,2021, primarily due to decreases in mark-to-market and notional movement.
(5) Derivatives CVA decreased during the three months ended December 31, 2021, primarily due to decreases in exposure and volatility, as well as lower credit spreads and sensitivity.
(6) Other exposures increased during the 12 months ended December 31, 2021, primarily due to increases in various other assets.
(7) Market risk-weighted assets decreased during the three months and 12 months ended December 31, 2021, primarily due to exposure changes.
(8) Operational risk-weighted assets decreased during the three months and 12 months ended December 31, 2021, primarily due to changes in operational loss severity and frequency.

36
Supplementary Leverage Ratio
The following table sets forth Citi’s Supplementary Leverage ratio and related components as of December 31, 2021, September 30, 2021 and December 31, 2020:

December 31, September 30, December 31,

In millions of dollars, except ratios 2021 2021 2020
Tier 1 Capital $ 169,568 $ 168,902 $ 167,053
Total Leverage Exposure
On-balance sheet assets(1)(2)(3) $2,389,237 $2,349,414 $1,864,374
Certain off-balance sheet exposures:(4)
Potential future exposure on derivative contracts 222,241 222,157 186,959
Effective notional of sold credit derivatives, net(5) 23,788 21,987 32,640
Counterparty credit risk for repo-style transactions(6) 25,775 21,174 20,965
Unconditionally cancelable commitments 70,196 70,541 71,163
Other off-balance sheet exposures 264,330 263,361 253,754
Total of certain off-balance sheet exposures $ 606,330 $ 599,220 $ 565,481
Less: Tier 1 Capital deductions 37,803 37,584 38,822
Total Leverage Exposure(3) $2,957,764 $2,911,050 $2,391,033
Supplementary Leverage ratio 5.73% 5.80% 6.99%

(1) Represents the daily average of on-balance sheet assets for the quarter.
(2) Citi has elected to apply the modified transition provision related to the impact of the CECL accounting standard on regulatory capital, as provided by the U.S. banking agencies’ September 2020 final rule. Under the
modified CECL transition provision, the changes in DTAs arising from temporary differences and the ACL upon the January 1, 2020 CECL adoption date were deferred and commenced phase-in to regulatory capital
at 25% per year beginning January 1, 2022. For the ongoing impact of CECL, Citigroup was allowed to adjust the ACL in an amount equal to 25% of the change in the ACL (pretax) for each period between January 1,
2020 and December 31, 2021. The cumulative adjustments to the ACL between January 1, 2020 and December 31, 2021 have also commenced phase in to regulatory capital at 25% per year beginning January 1,
2022, along with the deferred impacts related to the January 1, 2020 CECL adoption date. Corresponding adjustments to average on-balance sheet assets are reflected in Total Leverage Exposure.
(3) Commencing with the second quarter of 2020 and continuing through the first quarter of 2021, Citigroup’s Total Leverage Exposure temporarily excluded U.S. Treasuries and deposits at Federal Reserve Banks. For
additional information, see “Temporary Supplementary Leverage Ratio Relief” above.
(4) Represents the average of certain off-balance sheet exposures calculated as of the last day of each month in the quarter.
(5) Under the U.S. Basel III rules, banking organizations are required to include in Total Leverage Exposure the effective notional amount of sold credit derivatives, with netting of exposures permitted if certain conditions
are met.
(6) Repo-style transactions include repurchase or reverse repurchase transactions as well as securities borrowing or securities lending transactions.

As set forth in the table above, Citigroup’s Supplementary Leverage ratio

was 5.7% at December 31, 2021, compared to 5.8% at September 30, 2021 and
7.0% at December 31, 2020. The quarter-over-quarter decrease was primarily
driven by an increase in Total Leverage Exposure, primarily driven by an
increase in average on-balance sheet assets, as well as adverse net movements
in AOCI, partially offset by net income in the quarter. The year-over-year
decrease was primarily driven by an increase in Total Leverage Exposure,
largely due to an approximate 100 basis point impact from the expiration of
the Federal Reserve Board’s temporary Supplementary Leverage ratio relief.
For additional information, see “Temporary Supplementary Leverage Ratio
Relief” above.

37
Capital Resources of Citigroup’s Subsidiary U.S. The following tables set forth the capital components and ratios
Depository Institutions for Citibank, Citi’s primary subsidiary U.S. depository institution, as of
Citigroup’s subsidiary U.S. depository institutions are also subject to December 31, 2021, September 30, 2021 and December 31, 2020:
regulatory capital standards issued by their respective primary bank
regulatory agencies, which are similar to the standards of the Federal
Reserve Board.

Effective Advanced Approaches(8) Standardized Approach(8)

Minimum December 31, September 30, December 31, December 31, September 30, December 31,
In millions of dollars, except ratios Requirement(1) 2021 2021 2020 2021 2021 2020
Common Equity Tier 1 Capital(2) $ 148,548 $ 147,459 $ 142,854 $ 148,548 $ 147,459 $ 142,854
Tier 1 Capital 150,679 149,588 144,962 150,679 149,588 144,962
Total Capital (Tier 1 Capital + Tier 2 Capital)(2)(3) 166,921 166,196 161,447 175,427 174,745 169,449
Total Risk-Weighted Assets 1,017,774 1,067,406 1,047,088 1,066,015 1,107,021 1,054,056
Credit Risk(2) $ 737,802 $ 761,259 $ 737,953 $1,016,293 $1,048,581 $ 989,222
Market Risk 48,089 55,566 63,984 49,722 58,440 64,834
Operational Risk 231,883 250,581 245,151 — — —
Common Equity Tier 1 Capital ratio(4)(5) 7.0% 14.60% 13.81% 13.64% 13.93% 13.32% 13.55%
Tier 1 Capital ratio(4)(5) 8.5 14.80 14.01 13.84 14.13 13.51 13.75
Total Capital ratio(4)(5) 10.5 16.40 15.57 15.42 16.46 15.79 16.08

Effective
Minimum December 31, September 30, December 31,
In millions of dollars, except ratios Requirement 2021 2021 2020
Quarterly Adjusted Average Total Assets(2)(6) $1,716,596 $1,682,993 $1,667,105
Total Leverage Exposure(2)(7) 2,236,839 2,205,471 2,172,052
Tier 1 Leverage ratio(5) 5.0% 8.78% 8.89% 8.70%
Supplementary Leverage ratio(5) 6.0 6.74 6.78 6.67

(1) For all periods presented, Citibank’s effective minimum risk-based capital requirements are inclusive of the 2.5% Capital Conservation Buffer (all of which must be composed of Common Equity Tier 1 Capital).
(2) Citibank has elected to apply the modified transition provision related to the impact of the CECL accounting standard on regulatory capital, as provided by the U.S. banking agencies’ September 2020 final rule. Under
the modified CECL transition provision, the changes in retained earnings (after-tax), deferred tax assets (DTAs) arising from temporary differences, and the ACL upon the January 1, 2020 CECL adoption date were
deferred and have commenced phase-in to regulatory capital at 25% per year beginning on January 1, 2022. For the ongoing impact of CECL, Citibank was allowed to adjust retained earnings and the ACL in an
amount equal to 25% of the change in the ACL (pretax) for each period between January 1, 2020 and December 31, 2021. The cumulative adjustments to retained earnings and the ACL between January 1, 2020
and December 31, 2021 have also commenced phase-in to regulatory capital at 25% per year beginning January 1, 2022, along with the deferred impacts related to the January 1, 2020 CECL adoption date.
Corresponding adjustments to average on-balance sheet assets are reflected in quarterly adjusted average total assets and Total Leverage Exposure. Additionally, the increase in DTAs arising from temporary
differences upon the January 1, 2020 adoption date were deducted from risk-weighted assets (RWA) and commenced phase-in to RWA at 25% per year beginning January 1, 2022.
(3) Under the Advanced Approaches framework, eligible credit reserves that exceed expected credit losses are eligible for inclusion in Tier 2 Capital to the extent that the excess reserves do not exceed 0.6% of credit
risk-weighted assets, which differs from the Standardized Approach in which the ACL is eligible for inclusion in Tier 2 Capital up to 1.25% of credit risk-weighted assets, with any excess ACL being deducted in arriving
at credit risk-weighted assets.
(4) Citibank’s reportable Common Equity Tier 1 Capital and Tier 1 Capital ratios were the lower derived under the Basel III Standardized Approach, whereas Total Capital ratio was derived under the Basel III Advanced
Approaches framework for all periods presented.
(5) Citibank must maintain minimum Common Equity Tier 1 Capital, Tier 1 Capital, Total Capital and Tier 1 Leverage ratios of 6.5%, 8.0%, 10.0% and 5.0%, respectively, to be considered “well capitalized” under the
revised Prompt Corrective Action (PCA) regulations applicable to insured depository institutions as established by the U.S. Basel III rules. Citibank must also maintain a minimum Supplementary Leverage ratio of 6.0%
to be considered “well capitalized.”
(6) Tier 1 Leverage ratio denominator. Represents quarterly average total assets less amounts deducted from Tier 1 Capital.
(7) Supplementary Leverage ratio denominator.
(8) Certain of the above prior-period amounts have been revised to conform with enhancements made in the current period.

As indicated in the table above, Citibank’s capital ratios at December 31,

2021 were in excess of the stated and effective minimum requirements under
the U.S. Basel III rules. In addition, Citibank was also “well capitalized” as of
December 31, 2021.

38
Impact of Changes on Citigroup and Citibank Capital Ratios provided for the purpose of analyzing the impact that a change in Citigroup’s
The following tables present the estimated sensitivity of Citigroup’s and or Citibank’s financial position or results of operations could have on these
Citibank’s capital ratios to changes of $100 million in Common Equity ratios. These sensitivities only consider a single change to either a component
Tier 1 Capital, Tier 1 Capital and Total Capital (numerator), and changes of of capital, risk-weighted assets, quarterly adjusted average total assets or Total
$1 billion in Advanced Approaches and Standardized Approach risk-weighted Leverage Exposure. Accordingly, an event that affects more than one factor
assets and quarterly adjusted average total assets, as well as Total Leverage may have a larger basis point impact than is reflected in these tables.
Exposure (denominator), as of December 31, 2021. This information is

Common Equity
Tier 1 Capital ratio Tier 1 Capital ratio Total Capital ratio
Impact of
$100 million Impact of
change in Impact of Impact of $1 billion Impact of Impact of
Common $1 billion $100 million change in $100 million $1 billion
Equity change in change risk- change change in
Tier 1 risk-weighted in Tier 1 weighted in Total risk-weighted
In basis points Capital assets Capital assets Capital assets
Citigroup
Advanced Approaches 0.8 1.0 0.8 1.2 0.8 1.3
Standardized Approach 0.8 1.0 0.8 1.1 0.8 1.4
Citibank
Advanced Approaches 1.0 1.4 1.0 1.5 1.0 1.6
Standardized Approach 0.9 1.3 0.9 1.3 0.9 1.5

Tier 1 Leverage ratio Supplementary Leverage ratio

Impact of
$1 billion
Impact of change in Impact of Impact of
$100 million quarterly $100 million $1 billion
change in adjusted change in change in
Tier 1 average total Tier 1 Total Leverage
In basis points Capital assets Capital Exposure
Citigroup 0.4 0.3 0.3 0.2
Citibank 0.6 0.5 0.4 0.3

Citigroup Broker-Dealer Subsidiaries In addition, certain of Citi’s other broker-dealer subsidiaries are subject
At December 31, 2021, Citigroup Global Markets Inc., a U.S. broker-dealer to regulation in the countries in which they operate, including requirements
registered with the SEC that is an indirect wholly owned subsidiary of to maintain specified levels of net capital or its equivalent. Citigroup’s other
Citigroup, had net capital, computed in accordance with the SEC’s net capital principal broker-dealer subsidiaries were in compliance with their regulatory
rule, of $13 billion, which exceeded the minimum requirement by $8 billion. capital requirements at December 31, 2021.
Moreover, Citigroup Global Markets Limited, a broker-dealer registered
with the United Kingdom’s Prudential Regulation Authority (PRA) that
is also an indirect wholly owned subsidiary of Citigroup, had total capital
of $28 billion at December 31, 2021, which exceeded the PRA’s minimum
regulatory capital requirements.

39
Total Loss-Absorbing Capacity (TLAC) The table below details Citi’s eligible external TLAC and LTD amounts and
U.S. GSIBs, including Citi, are required to maintain minimum levels of ratios, and each effective minimum TLAC and LTD ratio requirement, as well
TLAC and eligible long-term debt (LTD), each set by reference to the GSIB’s as the surplus amount in dollars in excess of each requirement.
consolidated risk-weighted assets (RWA) and total leverage exposure.
December 31, 2021
Minimum External TLAC Requirement
External
The minimum external TLAC requirement is the greater of (i) 18% of the In billions of dollars, except ratios TLAC LTD
GSIB’s RWA plus the then-applicable RWA-based TLAC buffer (see below) and
Total eligible amount $ 318 $ 143
(ii) 7.5% of the GSIB’s total leverage exposure plus a leverage-based TLAC % of Standardized Approach risk-weighted assets 26.1% 11.7%
buffer of 2% (i.e., 9.5%). Effective minimum requirement(1)(2) 22.5 9.0
The RWA-based TLAC buffer equals the 2.5% capital conservation buffer, Surplus amount $ 44 $ 33
plus any applicable countercyclical capital buffer (currently 0%), plus % of Total Leverage Exposure 10.8% 4.8%
the GSIB’s capital surcharge as determined under method 1 of the GSIB Effective minimum requirement 9.5 4.5
surcharge rule (2.0% for Citi for 2021). Accordingly, Citi’s total current Surplus amount $ 37 $ 10
minimum TLAC requirement was 22.5% of RWA for 2021. (1) External TLAC includes Method 1 GSIB surcharge of 2.0%.
(2) LTD includes Method 2 GSIB surcharge of 3.0%.
Minimum LTD Requirement
The minimum LTD requirement is the greater of (i) 6% of the GSIB’s As of December 31, 2021, Citi exceeded each of the minimum TLAC and
RWA plus its capital surcharge as determined under method 2 of the GSIB LTD requirements, resulting in a $10 billion surplus above its binding TLAC
surcharge rule (3.0% for Citi for 2021), for a total current requirement of 9% requirement of LTD as a percentage of Total Leverage Exposure.
of RWA for Citi, and (ii) 4.5% of the GSIB’s total leverage exposure. For additional information on Citi’s TLAC-related requirements, see “Risk
Factors—Compliance Risks” and “Liquidity Risk—Total Loss-Absorbing
Capacity (TLAC)” below.

Capital Resources (Full Adoption of CECL)(1)

The following tables set forth Citigroup’s and Citibank’s capital components and ratios had the full impact of CECL been adopted as of December 31, 2021:

Citigroup Citibank
Effective Effective
Minimum Minimum
Requirement, Requirement, Effective
Advanced Standardized Advanced Standardized Minimum Advanced Standardized
Approaches Approach(2) Approaches Approach Requirement(3) Approaches Approach
Common Equity Tier 1 Capital ratio 10.0% 10.5% 12.10% 12.01% 7.0% 14.32% 13.68%
Tier 1 Capital ratio 11.5 12.0 13.78 13.68 8.5 14.53 13.88
Total Capital ratio 13.5 14.0 15.86 16.49 10.5 16.15 16.21

Effective Minimum Effective Minimum

Requirement Citigroup Requirement Citibank
Tier 1 Leverage ratio 4.0% 7.09% 5.0% 8.62%
Supplementary Leverage ratio 5.0 5.64 6.0 6.61

(1) See footnote 2 on the “Components of Citigroup Capital” table above.

(2) The effective minimum requirements were applicable as of December 31, 2021. See “Stress Capital Buffer” above for additional information.
(3) Citibank’s effective minimum requirements were the same under the Standardized Approach and the Advanced Approaches Framework.

40
Adoption of the Standardized Approach for Counterparty Adoption of SA-CCR also increased Citigroup’s Advanced RWA by
Credit Risk approximately $29 billion, which resulted in a 29 bps decrease to Citigroup’s
In January 2020, the U.S. banking agencies issued a final rule to introduce Common Equity Tier 1 Capital ratio under the Advanced Approaches on
the Standardized Approach for Counterparty Credit Risk (SA-CCR). SA-CCR January 1, 2022. Citigroup’s reported CET1 Capital ratio under the Advanced
replaced the Current Exposure Method (CEM), which was the previous Approaches as of December 31, 2021 was 12.35%, 85 bps above its 11.5%
methodology used to calculate exposure for all derivative contracts under CET1 Capital target, and 235 bps above its 10.0% effective regulatory
the Standardized Approach, as well as RWA for derivative contracts under minimum CET1 Capital requirement under the Advanced Approaches.
the Advanced Approaches in cases where internal models are not used. In Citigroup voluntarily suspended share repurchases during the fourth
addition, SA-CCR replaced CEM in numerous other instances throughout quarter of 2021, in anticipation of the adverse impact resulting from SA-CCR
the regulatory framework, including but not limited to the Supplementary adoption. Citi resumed common share repurchases in January 2022.
Leverage Ratio, certain components of the GSIB score, single counterparty
credit limits and legal lending limits. Regulatory Capital Standards Developments
Under SA-CCR, a banking organization calculates the exposure amount Basel III Revisions
of its derivative contracts at the netting set level. Multiple derivative As previously disclosed, the Basel Committee on Banking Supervision (Basel
contracts are generally considered to be under the same netting set as long Committee) has finalized certain Basel III post-crisis regulatory reforms.
as each derivative contract is subject to the same qualifying master netting The reforms relate to the methodologies in deriving credit, market and
agreement. SA-CCR also introduced the concept of hedging sets, which operational risk-weighted assets, the imposition of a new aggregate output
allows a banking organization to fully or partially net derivative contracts floor for risk-weighted assets, and revisions to the leverage ratio framework.
within the same netting set that share similar risk factors. Moreover, SA-CCR The U.S. banking agencies may revise the U.S. Basel III rules in the
incorporated updated supervisory and maturity factors to calculate the future, in response to the Basel Committee’s Basel III post-crisis regulatory
potential future exposure of a derivative contract, and provides for improved reforms. For information about risks related to changes in regulatory capital
recognition of collateral. Under the final rule, the exposure amount of a requirements, see “Risk Factors—Strategic Risks.” below.
netting set is equal to an alpha factor of 1.4 multiplied by the sum of the
replacement cost and potential future exposure of the netting set.
Citi adopted SA-CCR as of the mandatory compliance date of January 1,
2022. Adoption of SA-CCR increased Citigroup’s Standardized RWA by
approximately $51 billion, which resulted in a 49 bps decrease to Citigroup’s
Common Equity Tier 1 Capital ratio under the Standardized Approaches
on January 1, 2022. Citigroup’s reported CET1 Capital ratio under the
Standardized Approach as of December 31, 2021 was 12.25%, 75 bps above its
11.5% CET1 Capital target, and 175 bps above its 10.5% effective regulatory
minimum CET1 Capital requirement under the Standardized Approach.

41
Tangible Common Equity, Book Value Per Share, Tangible
Book Value Per Share and Return on Equity
Tangible common equity (TCE) represents common stockholders’ equity
less goodwill and identifiable intangible assets (other than mortgage
servicing rights (MSRs)). RoTCE represents net income available to common
shareholders as a percentage of average TCE. Tangible book value (TBV)
per share represents TCE divided by common shares outstanding. These
measures are non-GAAP financial measures. Other companies may calculate
these measures in a different manner. Citi believes TCE, TBV and RoTCE
provide alternate measures of capital strength and performance for investors,
industry analysts and others.

At December 31,
In millions of dollars or shares, except per share amounts 2021 2020 2019 2018 2017
Total Citigroup stockholders’ equity $201,972 $199,442 $193,242 $196,220 $ 200,740
Less: Preferred stock 18,995 19,480 17,980 18,460 19,253
Common stockholders’ equity $182,977 $179,962 $175,262 $177,760 $ 181,487
Less:
Goodwill 21,299 22,162 22,126 22,046 22,256
Identifiable intangible assets (other than MSRs) 4,091 4,411 4,327 4,636 4,588
Goodwill and identifiable intangible assets (other than MSRs) related to assets held-for-sale (HFS) 510 — — — 32
Tangible common equity (TCE) $157,077 $153,389 $148,809 $151,078 $ 154,611
Common shares outstanding (CSO) 1,984.4 2,082.1 2,114.1 2,368.5 2,569.9
Book value per share (common stockholders’ equity/CSO) $ 92.21 $ 86.43 $ 82.90 $ 75.05 $ 70.62
Tangible book value per share (TCE/CSO) 79.16 73.67 70.39 63.79 60.16

For the year ended December 31,

In millions of dollars 2021 2020 2019 2018 2017(1)
Net income available to common shareholders $ 20,912 $ 9,952 $ 18,292 $ 16,871 $ 14,583
Average common stockholders’ equity 182,421 175,508 177,363 179,497 207,747
Average TCE 156,253 149,892 150,994 153,343 180,458
Return on average common stockholders’ equity 11.5% 5.7% 10.3% 9.4% 7.0%
Return on average TCE (RoTCE) 13.4 6.6 12.1 11.0 8.1

(1) Year ended December 31, 2017 excludes the one-time impact of Tax Reform. For a reconciliation of these amounts, see “Significant Accounting Policies and Significant Estimates—Income Taxes” below.

42
RISK FACTORS
The following discussion sets forth what management currently believes Additionally, governmental fiscal and monetary actions, or expected
could be the material risks and uncertainties that could impact Citi’s actions, such as changes in interest rate policies and any program
businesses, results of operations and financial condition. Other risks implemented by a central bank to change the size of its balance sheet, could
and uncertainties, including those not currently known to Citi or its significantly impact interest rates, economic growth rates, the volatility of
management, could also negatively impact Citi’s businesses, results of global financial markets, foreign exchange rates and global capital flows.
operations and financial condition. Thus, the following should not be Further, it remains uncertain to what extent central banks may keep interest
considered a complete discussion of all of the risks and uncertainties that rates low or whether central banks might raise interest rates or reduce the
Citi may face. For additional information about risks and uncertainties size of their balance sheets, particularly as inflationary pressures continue
that could impact Citi, see “Executive Summary” and each respective and the U.S. and global economies continue to improve. While earlier in
business’ results of operations above and “Managing Global Risk” below. the pandemic the Federal Reserve Board (FRB) and other central banks
The following risk factors are categorized to improve the readability and took actions to support the global economy, including by further reducing
usefulness of the risk factor disclosure, and, while the headings and risk their benchmark interest rates, mismatches between supply and demand of
factors generally align with Citi’s risk categorization, in certain instances goods and services contributed to a rise in inflation in 2021, prompting the
the risk factors may not directly correspond with how Citi categorizes or FRB to announce the approaching end of the period of extraordinarily low
manages its risks. interest rates.
Interest rates on loans Citi makes are typically based off or set at a
MARKET-RELATED RISKS spread over a benchmark interest rate, and would likely decline or rise as
Macroeconomic, Geopolitical and Other Challenges and benchmark rates decline or rise, respectively. While the interest rates at which
Uncertainties Globally Could Have a Negative Impact on Citi pays depositors are already low and unlikely to decline much further,
Citi’s Businesses and Results of Operations. declining or continued low interest rates for loans could further compress
In addition to the significant macroeconomic challenges posed by the Citi’s net interest income. Citi’s net interest income could also be adversely
pandemic (see the pandemic-related risk factor below), Citi has experienced, affected due to a flattening of the interest rate yield curve (e.g., a lower spread
and could experience in the future, negative impacts to its businesses and between shorter-term versus longer-term interest rates), as Citi, similar to
results of operations as a result of other macroeconomic, geopolitical and other banks, typically pays interest on deposits based on shorter-term interest
other challenges, uncertainties and volatility. rates and earns money on loans based on longer-term interest rates.
For example, the recent action of Russian military forces and support In contrast, an abrupt and sustained increase in interest rates could
personnel in Ukraine has escalated tensions between Russia and the U.S., interfere with the global macroeconomic recovery, whether due to continued
NATO, the EU and the U.K. The U.S. has imposed, and is likely to impose or increased inflationary pressures or otherwise. And while Citi estimates
material additional, financial and economic sanctions and export controls its overall net interest income would generally increase due to higher
against certain Russian organizations and/or individuals, with similar interest rates, higher rates could adversely affect Citi’s funding costs, levels of
actions either implemented or planned by the EU and the U.K. and other deposits in its consumer and institutional businesses and certain business or
jurisdictions. During the week of February 21, 2022, the U.S., the U.K., and product revenues. For additional information on Citi’s interest rate risk, see
the EU each imposed packages of financial and economic sanctions that, “Managing Global Risk—Market Risk—Net Interest Income at Risk” below.
in various ways, constrain transactions with numerous Russian entities Additional areas of uncertainty include, among others, an elevated level of
and individuals; transactions in Russian sovereign debt; and investment, inflation resulting in adverse spill-over effects; the ability of Congress to raise
trade, and financing to, from, or in certain regions of Ukraine. Citi’s ability the federal debt ceiling; slowing of the Chinese economy, including negative
to engage in activity with certain consumer and institutional businesses in economic impacts associated with such slowdown or any policy actions;
Russia and Ukraine or involving certain Russian or Ukrainian businesses significant disruptions and volatility in financial markets; other geopolitical
and customers is dependent in part upon whether such engagement is tensions and conflicts; protracted or widespread trade tensions; financial
restricted under any current or expected U.S., EU and other countries or U.K. market, other economic and political disruption driven by anti-establishment
sanctions and laws. Sanctions and export controls, as well as any actions movements; natural disasters; other pandemics; and election outcomes. For
by Russia, could adversely affect Citi’s business activities and customers example, Citi’s market-making businesses can suffer losses resulting from
in and from Russia and Ukraine. Moreover, actions by Russia, and any the widening of credit spreads due to unanticipated changes in financial
further measures taken by the U.S. or its allies, could have negative impacts markets. In addition, adverse developments or downturns in one or more
on regional and global financial markets and economic conditions. of the world’s larger economies would likely have a significant impact on
For additional information about these and other related risks, see the the global economy or the economies of other countries because of global
operational processes and systems, cybersecurity and emerging markets risk financial and economic linkages.
factors below. For additional information about Citi’s exposures in Russia, see These and additional global macroeconomic, geopolitical and other
“Managing Global Risk—Other Risks—Country Risk—Russia” below. challenges, uncertainties and volatilities have negatively impacted, and could

43
continue to negatively impact, Citi’s businesses, results of operations and increase Citi’s credit and other costs; and may result in impairment of
financial condition, including its credit costs, revenues across ICG and GCB long-lived assets or goodwill. These factors could also cause an increase
and AOCI (which would in turn negatively impact Citi’s book and tangible in Citi’s balance sheet, risk-weighted assets and ACL, resulting in a decline
book value). in regulatory capital ratios or liquidity measures, as well as regulatory
demands for higher capital levels and/or limitations or reductions in capital
STRATEGIC RISKS distributions (such as common share repurchases and dividends). Moreover,
Rapidly Evolving Challenges and Uncertainties Related to any disruption or failure of Citi’s performance of, or its ability to perform,
the COVID-19 Pandemic in the U.S. and Globally Will Likely key business functions, as a result of the continued spread of COVID-19 or
Continue to Have Negative Impacts on Citi’s Businesses and otherwise, could adversely affect Citi’s operations.
Results of Operations and Financial Condition. The impact of the pandemic on Citi’s consumer and corporate borrowers
The COVID-19 pandemic has affected all of the countries and jurisdictions will vary by sector or industry, with some borrowers experiencing greater
in which Citi operates, including severely impacting global health, financial stress levels, particularly as credit and customer assistance support further
markets, consumer and business spending and economic conditions. The winds down, which could lead to increased pressure on their results of
extent of the future pandemic impacts remain uncertain and will likely operations and financial condition, increased borrowings or credit ratings
evolve by region, country or state, largely depending on the duration and downgrades, thus likely leading to higher credit costs for Citi. These
severity of the public health consequences, including the duration and borrowers include, among others, businesses that are more directly impacted
further spread of the coronavirus as well as any variants becoming more by the institution of social distancing, the movement of the public and store
prevalent and impactful; further production, distribution, acceptance and closures. In addition, stress levels ultimately experienced by Citi’s borrowers
effectiveness of vaccines; availability and efficiency of testing; the public may be different from and more intense than assumptions made in prior
response; and government actions. The future impacts to global economic estimates or models used by Citi, resulting in an increase in Citi’s ACL or net
conditions may include, among others: credit losses, particularly as the benefits of fiscal stimulus and government
• further disruption of global supply chains; support programs diminish.
• higher inflation; Ongoing legislative and regulatory changes in the U.S. and globally
to address the economic impact from the pandemic could further affect
• higher interest rates; Citi’s businesses, operations and financial performance. Citi could also face
• significant disruption and volatility in financial markets; challenges, including legal and reputational, and scrutiny in its efforts to
• additional closures, reduced activity and failures of many businesses, provide relief measures. Such efforts have resulted in, and may continue to
leading to loss of revenues and net losses; result in, litigation, including class actions, and regulatory and government
• further institution of social distancing and restrictions on businesses actions and proceedings. Such actions may result in judgments, settlements,
and the movement of the public in and among the U.S. and other penalties and fines adverse to Citi. In addition, the different types of
countries; and government actions could vary in scale and duration across jurisdictions and
• reduced U.S. and global economic output. regions with varying degrees of effectiveness.
Citi has taken measures to maintain the health and safety of its
The pandemic has had, and may continue to have, negative impacts on colleagues; however, these measures could result in additional expenses,
Citi’s businesses and overall results of operations and financial condition, and illness of employees could negatively affect staffing for a period of
which could be material. The extent of the impact on Citi’s operations and time. In addition, Citi’s ability to recruit, hire and onboard colleagues in
financial performance, including its ability to execute its business strategies key areas could be negatively impacted by pandemic restrictions as well as
and initiatives, will continue to depend significantly on future developments Citi’s COVID-19 vaccination requirement (see the qualified colleagues risk
in the U.S. and globally. Such developments are uncertain and cannot be factor below).
predicted, including the course of the coronavirus, as well as any weakness or Further, it is unclear how the macroeconomic or business environment
slowing in the economic recovery or a further economic downturn, whether or societal norms may be impacted after the pandemic. The post-pandemic
due to further supply chain disruptions, inflation trends, higher interest rates environment may undergo unexpected developments or changes in financial
or otherwise. markets, fiscal, monetary, tax and regulatory environments and consumer
The pandemic may not be sufficiently contained for an extended period of customer and corporate client behavior. These developments and changes
time. A prolonged health crisis could reduce economic activity in the U.S. and could have an adverse impact on Citi’s results of operations and financial
other countries, resulting in additional declines or weakness in employment condition. Ongoing business and regulatory uncertainties and changes may
trends and business and consumer confidence. These factors could negatively make Citi’s longer-term business, balance sheet and strategic and budget
impact global economic activity and markets; cause a continued decline planning more difficult or costly. Citi and its management and businesses
in the demand for Citi’s products and services and in its revenues; further may also experience increased or different competitive and other challenges

44
in this environment. To the extent that it is not able to adapt or compete to return capital may be adversely impacted if such an evaluation of Citi
effectively, Citi could experience loss of business and its results of operations resulted in negative findings. In addition, Citi’s ability to accurately predict,
and financial condition could suffer (see the competitive challenges risk interpret or explain to stakeholders the results of the CCAR process, and
factor below). thus to address any market or investor perceptions, may be limited as the
FRB’s assessment of Citi’s capital adequacy is conducted using the FRB’s
Citi’s Ability to Return Capital to Common Shareholders proprietary stress test models. For additional information on limitations on
Consistent with Its Capital Planning Efforts and Targets Citi’s ability to return capital to common shareholders, as well as the CCAR
Substantially Depends on Regulatory Capital Requirements, process, supervisory stress test requirements and GSIB surcharge, see “Capital
Including the Results of the CCAR Process and Regulatory Resources—Overview” and “Capital Resources—Stress Testing Component
Stress Tests. of Capital Planning” above and the risk management risk factor below.
Citi’s ability to return capital to its common shareholders consistent with The FRB has stated that it expects leading capital adequacy practices to
its capital planning efforts and targets, whether through its common stock continue to evolve and to likely be determined by the FRB each year as a
dividend or through a share repurchase program, substantially depends, result of its cross-firm review of capital plan submissions. Similarly, the FRB
among other things, on regulatory capital requirements, including the Stress has indicated that, as part of its stated goal to continually evolve its annual
Capital Buffer (SCB), which is based upon the results of the CCAR process stress testing requirements, several parameters of the annual stress testing
required by the FRB as well as the supervisory stress tests required under the process may continue to be altered, including the severity of the stress test
Dodd- Frank Act (as described in more detail below). scenario, the FRB modeling of Citi’s balance sheet, pre-provision net revenue
Citi’s ability to return capital also depends on its results of operations (PPNR) and stress losses, and the addition of components deemed important
and financial condition, the capital impact related to divestitures, forecasts by the FRB.
of macroeconomic conditions, its implementation and maintenance of Beginning January 1, 2022, Citi was required to phase into regulatory
an effective capital planning process and management framework, and capital at 25% per year the changes in retained earnings, deferred tax assets
effectiveness in planning, managing and calculating its level of risk-weighted and ACL determined upon the January 1, 2020 CECL adoption date, as well
assets under both the Advanced Approaches and the Standardized Approach, as subsequent changes in the ACL between January 1, 2020 and December
Supplementary Leverage Ratio (SLR) and global systemically important 31, 2021. The FRB has stated that it plans to maintain its current framework
bank holding company (GSIB) surcharge, which has been made more for calculating allowances on loans in the supervisory stress test through the
challenging due to elevated levels of liquidity in the financial system related 2023 supervisory stress test cycle, while continuing to evaluate appropriate
to the pandemic (see the macroeconomic challenges and uncertainties risk future enhancements to this framework. The impacts on Citi’s capital
factor above). adequacy of the FRB’s incorporation of CECL in its supervisory stress tests
Changes in regulatory capital rules, requirements or interpretations on an ongoing basis, and of other potential regulatory changes in the FRB’s
could have a material impact on Citi’s regulatory capital, both as a result of stress testing methodologies, remain unclear. For additional information
changes in Citi’s reported regulatory capital and integration into the CCAR regarding the CECL methodology, including the transition provisions
process and regulatory stress tests. For example, Citi was required to adopt related to the adverse regulatory capital effects resulting from adoption
the Standardized Approach for Counterparty Credit Risk (SA-CCR) as of of the CECL methodology, see “Capital Resources—Current Regulatory
January 1, 2022, which resulted in an approximate $51 billion increase in Capital Standards—Regulatory Capital Treatment—Modified Transition
Citi’s risk-weighted assets under the Standardized Approach. Citi voluntarily of the Current Expected Credit Losses Methodology” above and Note 1 to the
suspended common share repurchases during the fourth quarter of 2021, in Consolidated Financial Statements.
anticipation of the adverse impact resulting from the adoption of SA-CCR. In addition, the FRB has integrated the annual stress testing requirements
Citi will be required to adopt SA-CCR for purposes of the supervisory stress with ongoing regulatory capital requirements. For Citigroup, the SCB equals
test during the 2023 cycle and SA-CCR may be considered by management the maximum decline in Citi’s Common Equity Tier 1 Capital ratio under the
during the 2022 cycle for purposes of management’s own capital adequacy supervisory severely adverse scenario over a nine-quarter CCAR measurement
assessment. In addition, the U.S. banking agencies may potentially period, plus four quarters of planned common stock dividends, subject
consider a number of changes to the U.S. regulatory capital framework to a minimum requirement of 2.5%. Effective October 1, 2021, Citi’s SCB
in the future, including, but not limited to, revisions to the U.S. Basel III was 3.0%. The SCB is calculated by the FRB using its proprietary data and
rules, recalibration of the GSIB surcharge and SLR, and enactment of the modeling of each firm’s results. Accordingly, Citi’s SCB may change annually,
discretionary Countercyclical Capital Buffer. All of these potential changes or possibly more frequently, based on the supervisory stress test results, thus
could negatively impact Citi’s regulatory capital position or increase Citi’s potentially resulting in volatility in the calculation of the SCB. Similar to
regulatory capital requirements. the other regulatory capital buffers, a breach of the SCB would result in
All CCAR firms, including Citi, will continue to be subject to a rigorous graduated limitations on capital distributions. For additional information
regulatory evaluation of capital planning practices, including, but not on the SCB, including its calculation, see “Capital Resources—Regulatory
limited to, governance, risk management and internal controls. Citi’s ability Capital Buffers” above.

45
 Although various uncertainties exist regarding the extent of, and require ongoing assessment by management as to the impact to Citi, its
the ultimate impact to Citi from, these changes to the FRB’s regulatory businesses and business planning. For example, while the Basel III post-crisis
capital, stress testing and CCAR regimes, these changes could increase the regulatory reforms and revised market risk framework have been finalized at
level of capital Citi is required or elects to hold, including as part of Citi’s the international level, there remain significant uncertainties with respect to
management buffer, thus potentially impacting the extent to which Citi is the integration of these revisions into the U.S. regulatory capital framework.
able to return capital to shareholders. Business planning is required to be based on possible or proposed rules
or outcomes, which can change dramatically upon finalization, or upon
Citi, Its Management and Its Businesses Must Continually implementation or interpretive guidance from numerous regulatory bodies
Review, Analyze and Successfully Adapt to Ongoing worldwide, and such guidance can change.
Regulatory and Legislative Uncertainties and Changes in the Regulatory and legislative changes have also significantly increased
U.S. and Globally. Citi’s compliance risks and costs (see the implementation and interpretation
Despite the adoption of final regulations and laws in numerous areas of regulatory changes risk factor below) and can adversely affect Citi’s
impacting Citi and its businesses over the past several years, Citi, its businesses, results of operations and financial condition.
management and its businesses continually face ongoing regulatory and
legislative uncertainties and changes, both in the U.S. and globally. While Citi’s Continued Investment and Other Initiatives as Part
the areas of ongoing regulatory and legislative uncertainties and changes of Its Transformation and Strategic Refresh May Not Be as
facing Citi are too numerous to list completely, various examples include, Successful as It Projects or Expects.
but are not limited to (i) potential fiscal, monetary, regulatory, tax and other As part of its transformation initiatives, Citi continues to make significant
changes arising from the U.S. federal government and other governments, investments to improve its infrastructure, risk management and controls
including as a result of the differing priorities of the current U.S. presidential and further enhance safety and soundness (for additional information, see
administration, changes in regulatory leadership or focus and actions of the legal and regulatory proceedings risk factor below). Citi also continues
Congress or in response to the pandemic; (ii) potential changes to various to execute on its strategic refresh that includes, among other things, its exit
aspects of the regulatory capital framework and requirements applicable to of certain consumer banking businesses (see below) and its investments to
Citi (see the capital return risk factor and “Capital Resources—Regulatory deepen client relationships and enhance client offerings and capabilities in
Capital Standards Developments” above); and (iii) future legislative and order to simplify the Company and enhance its allocation of resources.
regulatory requirements in the U.S. and globally related to climate change, For example, Citi continues to invest in its technology and digital
including any new disclosure requirements (see the climate change risk capabilities across the franchise, including digital platforms and mobile and
factor below). When referring to “regulatory,” Citi is including both cloud-based solutions. In addition, Citi has been making other investments
formal regulation and the views and expectations of its regulators in their across the Company, such as in Citi’s wealth management business,
supervisory roles. commercial banking business, treasury and trade solutions, securities
U.S. and international regulatory and legislative initiatives have not services and other businesses, including implementing new capabilities and
always been undertaken or implemented on a coordinated basis, and areas partnerships. Citi has also been pursuing productivity improvements through
of divergence have developed and continue to develop with respect to the various technology and digital initiatives, organizational simplification and
scope, interpretation, timing, structure or approach, leading to inconsistent location strategies. Failure to properly invest in and upgrade Citi’s technology
or even conflicting requirements, including within a single jurisdiction. and processes could result in an inability to be sufficiently competitive, serve
For example, in May 2019, the European Commission adopted, as part of clients effectively and avoid operational errors (for additional information,
Capital Requirements Directive V (CRD V), a new requirement for major see the operational processes and systems risk factor below). There is no
banking groups headquartered outside the EU (which would include Citi) guarantee that these or other initiatives Citi may pursue will be as productive
to establish an intermediate EU holding company where the foreign bank or effective as Citi expects, or at all.
has two or more institutions (broadly meaning banks, broker-dealers and Furthermore, Citi’s strategic refresh necessitates further changes in and
similar financial firms) established in the EU. While in some respects exits of certain businesses, which involve significant execution complexity,
the requirement mirrors an existing U.S. requirement for non-U.S. and could result in additional losses, charges or other negative financial
banking organizations to form U.S. intermediate holding companies, the impacts. For example, Citi may not be able to achieve its objectives related to
implementation of the EU holding company requirement could lead to its exits of 13 consumer markets in Asia and EMEA or exit of the consumer,
additional complexity with respect to Citi’s resolution planning, capital and small business and middle-market banking operations in Mexico. These
liquidity allocation and efficiency in various jurisdictions. exits may not be as productive, effective or timely as Citi expects and may
Moreover, ongoing regulatory and legislative uncertainties and changes result in additional foreign currency translation adjustments (CTA) or other
make Citi’s and its management’s long-term business, balance sheet and losses, charges or other negative financial or strategic impacts, which could
strategic budget planning difficult, subject to change and potentially more be material. For additional information on CTA losses, see the incorrect
costly. U.S. and other regulators globally have implemented and continue assumptions or estimates risk factor below.
to discuss various changes to certain regulatory requirements, which would

46
 Citi’s investment and other initiatives may continue to evolve as its Citi’s Interpretation or Application of the Complex Tax Laws
business strategies, the market environment and regulatory expectations to Which It Is Subject Could Differ from Those of the Relevant
change, which could make the initiatives more costly and more challenging Governmental Authorities, Which Could Result in Litigation or
to implement, and limit their effectiveness. Moreover, Citi’s ability to achieve Examinations and the Payment of Additional Taxes, Penalties
expected returns on its investments and costs savings depends, in part, or Interest.
on factors that it cannot control, including, among others, interest rates; Citi is subject to various income-based tax laws of the U.S. and its states
inflation; impacts related to the pandemic; customer, client and competitor and municipalities, as well as the numerous non-U.S. jurisdictions in
actions; and ongoing regulatory changes. which it operates. These tax laws are inherently complex and Citi must
make judgments and interpretations about the application of these laws,
Citi’s Ability to Utilize Its DTAs, and Thus Reduce the Negative including the Tax Cuts and Jobs Act (Tax Reform), to its entities, operations
Impact of the DTAs on Citi’s Regulatory Capital, Will Be Driven and businesses. In addition, Citi is subject to litigation or examinations with
by Its Ability to Generate U.S. Taxable Income. U.S. and non-U.S. tax authorities regarding non-income-based tax matters.
At December 31, 2021, Citi’s net DTAs were $24.8 billion, net of a valuation Citi’s interpretations or application of the tax laws, including with respect
allowance of $4.2 billion, of which $9.5 billion was deducted from Citi’s to Tax Reform, withholding, stamp, service and other non-income taxes,
Common Equity Tier 1 Capital under the U.S. Basel III rules, primarily could differ from that of the relevant governmental taxing authority, which
relating to net operating losses, foreign tax credit and general business could result in the requirement to pay additional taxes, penalties or interest,
credit carry-forwards (for additional information, see “Capital Resources— which could be material. For additional information on the litigation
Components of Citigroup Capital” above). and examinations involving non-U.S. tax authorities, see Note 27 to the
Of the net DTAs at December 31, 2021, $2.8 billion related to foreign tax Consolidated Financial Statements.
credit (FTC) carry-forwards, net of a valuation allowance. The carry-forward
utilization period for FTCs is 10 years and represents the most time-sensitive A Deterioration in or Failure to Maintain Citi’s Co-Branding
component of Citi’s DTAs. The FTC carry-forwards at December 31, 2021 or Private Label Credit Card Relationships, Including as a
expire over the period of 2022–2029. Citi must utilize any FTCs generated in Result of Early Termination, Bankruptcy or Liquidation,
the then-current-year tax return prior to utilizing any carry-forward FTCs. Could Have a Negative Impact on Citi’s Results of Operations
The accounting treatment for realization of DTAs, including FTCs, is or Financial Condition.
complex and requires significant judgment and estimates regarding future Citi has co-branding and private label relationships through its branded
taxable earnings in the jurisdictions in which the DTAs arise and available cards and retail services credit card businesses with various retailers and
tax planning strategies. Forecasts of future taxable earnings will depend merchants globally, whereby in the ordinary course of business Citi issues
upon various factors, including, among others, the continued impact of the credit cards to customers of the retailers or merchants. The five largest
pandemic and other macroeconomic conditions. In addition, any future relationships across both businesses in North America GCB constituted an
increase in U.S. corporate tax rates could result in an increase in Citi’s DTA, aggregate of approximately 9% of Citi’s revenues in 2021 (for additional
which may subject more of Citi’s existing DTA to exclusion from regulatory information, see “Global Consumer Banking—North America GCB”
capital while improving Citi’s ability to utilize its FTC carry-forwards. above). Citi’s co-branding and private label agreements provide for shared
Citi’s overall ability to realize its DTAs will primarily be dependent upon economics between the parties and generally have a fixed term.
its ability to generate U.S. taxable income in the relevant tax carry-forward Over the last several years, a number of U.S. retailers have continued
periods. Although utilization of FTCs in any year is generally limited to 21% to experience declining sales due to the pandemic or otherwise, which has
of foreign source taxable income in that year, overall domestic losses (ODL) resulted in significant numbers of store closures and, in a number of cases,
that Citi has incurred in the past allow it to reclassify domestic source income bankruptcies, as retailers attempt to cut costs and reorganize. In addition, as
as foreign source. Failure to realize any portion of the net DTAs would have a has been widely reported, competition among card issuers, including Citi, for
corresponding negative impact on Citi’s net income and financial returns. these relationships is significant, and it has become increasingly difficult in
Citi has not been and does not expect to be subject to the Base Erosion recent years to maintain such relationships on the same terms or at all.
Anti-Abuse Tax (BEAT), which, if applicable to Citi in any given year, Citi’s co-branding and private label relationships could be negatively
would have a significantly adverse effect on both Citi’s net income and impacted by, among other things, the general economic environment;
regulatory capital. changes in consumer sentiment, spending patterns and credit card usage
For additional information on Citi’s DTAs, including FTCs, see behaviors; a decline in sales and revenues, partner store closures, government
“Significant Accounting Policies and Significant Estimates—Income Taxes” imposed restrictions, reduced air and business travel, or other operational
below and Notes 1 and 9 to the Consolidated Financial Statements. difficulties of the retailer or merchant; early termination due to a contractual
breach or exercise of other early termination right; or other factors, including
bankruptcies, liquidations, restructurings, consolidations or other similar
events, whether due to the ongoing impact of the pandemic or otherwise
(see the pandemic-related risk factor above).

47
 While various mitigating factors could be available to Citi if any of the If Citi is unable to continue to attract, retain and motivate the most
above events were to occur—such as by replacing the retailer or merchant highly qualified colleagues, Citi’s performance, including its competitive
or offering other card products—these events, particularly early termination position, the execution of its strategy and its results of operations could be
and bankruptcies or liquidations, could negatively impact the results of negatively impacted.
operations or financial condition of branded cards, retail services or Citi Citi’s ability to attract, retain and motivate colleagues depends on
as a whole, including as a result of loss of revenues, increased expenses, numerous factors, some of which are outside of its control. For example,
higher cost of credit, impairment of purchased credit card relationships the competition for talent recently has been particularly intense because
and contract-related intangibles or other losses (for information on Citi’s of economic conditions associated with the pandemic. Also, the banking
credit card related intangibles generally, see Note 16 to the Consolidated industry generally is subject to more comprehensive regulation of employee
Financial Statements). compensation than other industries, including deferral and clawback
requirements for incentive compensation, which can make it unusually
Citi’s Inability in Its Resolution Plan Submissions to Address challenging for Citi to compete in labor markets against businesses that
Any Shortcomings or Deficiencies Identified or Guidance are not subject to such regulation. Citi often competes for talent with such
Provided by the FRB and FDIC Could Subject Citi to More businesses, including, among others, technology companies. Further,
Stringent Capital, Leverage or Liquidity Requirements, or Citi’s vaccination requirement for its U.S.-based employees could make
Restrictions on Its Growth, Activities or Operations, and it more difficult to compete for or retain colleagues. Other factors that
Could Eventually Require Citi to Divest Assets or Operations. could impact its ability to attract, retain and motivate colleagues include,
Title I of the Dodd-Frank Act requires Citi to prepare and submit a plan to the among other things, Citi’s presence in a particular market or region, the
FRB and the FDIC for the orderly resolution of Citigroup (the bank holding professional opportunities it offers and its reputation. For information on
company) and its significant legal entities under the U.S. Bankruptcy Code in Citi’s colleagues and workforce management, see “Human Capital Resources
the event of future material financial distress or failure. The eight U.S. GSIBs, and Management” below.
including Citi, filed their most recent resolution plans with the FRB and
FDIC on July 1, 2021. For additional information on Citi’s resolution plan Financial Services Companies and Others as well as Emerging
submissions, see “Managing Global Risk—Liquidity Risk” below. Technologies Pose Increasingly Competitive Challenges to Citi.
Under Title I, if the FRB and the FDIC jointly determine that Citi’s Citi operates in an increasingly evolving and competitive business
resolution plan is not “credible” (which, although not defined, is generally environment, which includes both financial and non-financial services firms,
believed to mean the regulators do not believe the plan is feasible or would such as traditional banks, online banks, financial technology companies and
otherwise allow Citi to be resolved in a way that protects systemically others. These companies compete on the basis of, among other factors, size,
important functions without severe systemic disruption), or would not reach, quality and type of products and services offered, price, technology
facilitate an orderly resolution of Citi under the U.S. Bankruptcy Code, and reputation. Certain competitors may be subject to different and, in some
and Citi fails to resubmit a resolution plan that remedies any identified cases, less stringent legal and regulatory requirements, placing Citi at a
deficiencies, Citi could be subjected to more stringent capital, leverage or competitive disadvantage.
liquidity requirements, or restrictions on its growth, activities or operations. Citi competes with financial services companies in the U.S. and globally
If within two years from the imposition of any such requirements or that continue to develop and introduce new products and services. In recent
restrictions Citi has still not remediated any identified deficiencies, then Citi years, non-financial services firms, such as financial technology companies,
could eventually be required to divest certain assets or operations. Any such have begun to offer services traditionally provided by financial institutions,
restrictions or actions would negatively impact Citi’s reputation, market and such as Citi, and have sought bank charters to provide these services. These
investor perception, operations and strategy. firms attempt to use technology and mobile platforms to enhance the ability
of companies and individuals to borrow, save and invest money.
Citi’s Performance and the Performance of Its Individual Moreover, emerging technologies have the potential to intensify
Businesses Could Be Negatively Impacted if Citi Is Not Able competition and accelerate disruption in the financial services industry. For
to Effectively Compete for, Retain and Motivate Highly example, there is increasing interest from clients and investors in digital
Qualified Colleagues. assets such as cryptocurrencies. Financial services firms and other market
Recent employment conditions have made the competition to hire and retain participants have begun to offer services related to those assets such as
qualified employees significantly more challenging. Citi’s performance and custody and trading. However, Citi may not be able to provide the same or
the performance of its individual businesses largely depend on the talents similar services for legal or regulatory reasons and such services increase
and efforts of its diverse and highly qualified colleagues. Specifically, Citi’s compliance risk. In addition, changes in the payments space (e.g., instant
continued ability to compete in each of its lines of business, to manage its and 24x7 payments) are accelerating, and, as a result, certain of Citi’s
businesses effectively and to execute its global strategy depends on its ability products and services could become less competitive.
to attract new colleagues and to retain and motivate its existing colleagues.

48
 In addition, as discussed above, it is unclear how the macroeconomic of employees or third parties; accidental system or technological failure;
business environment or societal norms may be impacted as a result of the electrical or telecommunication outages; failures of or cyber incidents
pandemic. Citi may experience increased or different competitive and other involving computer servers or infrastructure; or other similar losses or
challenges in a post-pandemic environment. Increased competition and damage to Citi’s property or assets (see also the climate change risk factor
emerging technologies have required and could require Citi to change or below). For example, Citi has experienced and could experience further
adapt its products and services to attract and retain customers or clients or to losses associated with manual transaction processing errors (for additional
compete more effectively with competitors, including new market entrants. information, see “Revlon-Related Wire Transfer Litigation” in Note 27 to the
Simultaneously, as Citi develops new products and services leveraging Consolidated Financial Statements).
emerging technologies, new risks may emerge that, if not designed and Irrespective of the sophistication of the technology utilized by Citi, there
governed adequately, may result in control gaps and in Citi operating outside will always be some room for human error. In view of the large transactions
of its risk appetite. For example, instant and 24x7 payments products could in which Citi engages, such errors could result in significant loss.
be accompanied by challenges to forecasting and managing liquidity, as well Operational incidents can also arise as a result of failures by third parties
as increased operational and compliance risks. with which Citi does business, such as failures by internet, mobile technology
To the extent that Citi is not able to compete effectively with financial and cloud service providers or other vendors to adequately follow procedures
technology companies and other firms, Citi could be placed at a competitive or processes, safeguard their systems or prevent system disruptions or
disadvantage, which could result in loss of customers and market share, and cyber attacks.
its businesses, results of operations and financial condition could suffer. For Incidents that impact information security and/or technology operations
additional information on Citi’s competitors, see the co-brand and private may cause disruptions and/or malfunctions within Citi’s businesses (e.g.,
label cards and qualified colleagues risk factors above and “Supervision, the temporary loss of availability of Citi’s online banking system or mobile
Regulation and Other—Competition” below. banking platform), as well as the operations of its clients, customers or other
third parties. In addition, operational incidents could involve the failure or
OPERATIONAL RISKS ineffectiveness of internal processes or controls.
A Failure or Disruption of Citi’s Operational Processes Given Citi’s global footprint and the high volume of transactions
or Systems Could Negatively Impact Citi’s Reputation, processed by Citi, certain failures, errors or actions may be repeated or
Customers, Clients, Businesses or Results of Operations compounded before they are discovered and rectified, which would further
and Financial Condition. increase the consequences and costs. Operational incidents could result in
Citi’s global operations rely heavily on its technology, including the accurate, financial losses as well as misappropriation, corruption or loss of confidential
timely and secure processing, management, storage and transmission and other information or assets, which could significantly negatively impact
of confidential transactions, data and other information as well as the Citi’s reputation, customers, clients, businesses or results of operations and
monitoring of a substantial amount of data and complex transactions in real financial condition. Cyber-related and other operational incidents can also
time. For example, Citi obtains and stores an extensive amount of personal result in legal and regulatory proceedings, fines and other costs (see the legal
and client-specific information for its consumer and institutional customers and regulatory proceedings risk factor below).
and clients, and must accurately record and reflect their extensive account For information on Citi’s management of operational risk, see “Managing
transactions. Citi’s operations must also comply with complex and evolving Global Risk—Operational Risk” below.
laws and regulations in the countries in which it operates.
With the evolving proliferation of new technologies and the increasing use Citi’s and Third Parties’ Computer Systems and Networks Have
of the internet, mobile devices and cloud technologies to conduct financial Been, and Will Continue to Be, Susceptible to an Increasing
transactions, large global financial institutions such as Citi have been, and Risk of Continually Evolving, Sophisticated Cybersecurity
will continue to be, subject to an ever-increasing risk of operational loss, Activities That Could Result in the Theft, Loss, Misuse or
failure or disruption, including as a result of cyber or information security Disclosure of Confidential Client or Customer Information,
incidents. These risks have been exacerbated during the pandemic, when a Damage to Citi’s Reputation, Additional Costs to Citi,
substantial portion of Citi’s colleagues have worked remotely and customers Regulatory Penalties, Legal Exposure and Financial Losses.
and clients have increased their use of online banking and other platforms Citi’s computer systems, software and networks are subject to ongoing cyber
(for additional information, see the pandemic-related risk factor above and incidents such as unauthorized access, loss or destruction of data (including
the cybersecurity risk factor below). confidential client information), account takeovers, unavailability of
Although Citi has continued to upgrade its technology, including systems service, computer viruses or other malicious code, cyber attacks and other
to automate processes and enhance efficiencies, operational incidents are similar events. These threats can arise from external parties, including
unpredictable and can arise from numerous sources, not all of which are cyber criminals, cyber terrorists, hacktivists and nation-state actors, as well
fully within Citi’s control. These include, among others, human error, as insiders who knowingly or unknowingly engage in or enable malicious
such as manual transaction processing errors; fraud or malice on the part cyber activities.

49
 Third parties with which Citi does business, as well as retailers and other Cyber incidents can result in the disclosure of personal, confidential or
third parties with which Citi’s customers do business, may also be sources of proprietary customer or client information, damage to Citi’s reputation with
cybersecurity risks, particularly where activities of customers are beyond Citi’s its clients and the market, customer dissatisfaction and additional costs
security and control systems. For example, Citi outsources certain functions, to Citi, including expenses such as repairing systems, replacing customer
such as processing customer credit card transactions, uploading content payment cards, credit monitoring or adding new personnel or protection
on customer-facing websites and developing software for new products and technologies. Regulatory penalties, loss of revenues, exposure to litigation
services. These relationships allow for the storage and processing of customer and other financial losses, including loss of funds, to both Citi and its clients
information by third-party hosting of or access to Citi websites, which could and customers and disruption to Citi’s operational systems could also result
lead to compromise or the potential to introduce vulnerable or malicious from cyber incidents (for additional information on the potential impact
code, resulting in security breaches impacting Citi customers. Furthermore, of operational disruptions, see the operational processes and systems risk
because financial institutions are becoming increasingly interconnected factor above). Moreover, the increasing risk of cyber incidents has resulted in
with central agents, exchanges and clearing houses, including as a result increased legislative and regulatory scrutiny of firms’ cybersecurity protection
of derivatives reforms over the last few years, Citi has increased exposure to services and calls for additional laws and regulations to further enhance
cyber attacks through third parties. While many of Citi’s agreements with protection of consumers’ personal data.
third parties include indemnification provisions, Citi may not be able to While Citi maintains insurance coverage that may, subject to policy terms
recover sufficiently, or at all, under the provisions to adequately offset any and conditions including significant self- insured deductibles, cover certain
losses Citi may incur from third-party cyber incidents. aspects of cyber risks, such insurance coverage may be insufficient to cover
Citi has been subject to attempted and sometimes successful cyber attacks all losses and may not take into account reputational harm, the cost of which
from external sources over the last several years, including (i) denial of could be immeasurable.
service attacks, which attempt to interrupt service to clients and customers, For additional information about Citi’s management of cybersecurity risk,
(ii) hacking and malicious software installations, intended to gain see “Managing Global Risk—Operational Risk—Cybersecurity Risk” below.
unauthorized access to information systems or to disrupt those systems,
(iii) data breaches due to unauthorized access to customer account data Changes to or the Application of Incorrect Assumptions,
and (iv) malicious software attacks on client systems, in an attempt to gain Judgments or Estimates in Citi’s Financial Statements Could
unauthorized access to Citi systems or client data under the guise of normal Cause Significant Unexpected Losses or Impacts in the Future.
client transactions. While Citi’s monitoring and protection services were U.S. GAAP requires Citi to use certain assumptions, judgments and estimates
able to detect and respond to the incidents targeting its systems before they in preparing its financial statements, including, among other items,
became significant, they still resulted in limited losses in some instances as the estimate of the ACL; reserves related to litigation, regulatory and tax
well as increases in expenditures to monitor against the threat of similar matters exposures; valuation of DTAs; the fair values of certain assets and
future cyber incidents. There can be no assurance that such cyber incidents liabilities; and the assessment of goodwill or other assets for impairment.
will not occur again, and they could occur more frequently and on a more If Citi’s assumptions, judgments or estimates underlying its financial
significant scale. statements are incorrect or differ from actual or subsequent events, Citi could
Further, although Citi devotes significant resources to implement, experience unexpected losses or other adverse impacts, some of which could
maintain, monitor and regularly upgrade its systems and networks with be significant.
measures such as intrusion detection and prevention and firewalls to For example, the CECL methodology requires that Citi provide reserves for
safeguard critical business applications, there is no guarantee that these a current estimate of lifetime expected credit losses for its loan portfolios and
measures or any other measures can provide absolute security. Because the other financial assets, as applicable, at the time those assets are originated
methods used to cause cyber attacks change frequently or, in some cases, are or acquired. This estimate is adjusted each period for changes in expected
not recognized until launched or even later, Citi may be unable to implement lifetime credit losses. Citi’s ACL estimate depends upon its CECL models and
effective preventive measures or proactively address these methods until they assumptions, forecasted macroeconomic conditions, including, among other
are discovered. In addition, given the evolving nature of cyber threat actors things, U.S. unemployment rate and U.S. Real GDP, and the credit indicators,
and the frequency and sophistication of the cyber activities they carry out, composition and other characteristics of Citi’s loan and other applicable
the determination of the severity and potential impact of a cyber incident financial assets. These model assumptions and forecasted macroeconomic
may not become apparent for a substantial period of time following discovery conditions will change over time, whether due to the pandemic or otherwise,
of the incident. Also, while Citi engages in certain actions to reduce the resulting in greater variability in Citi’s ACL compared to its provision for loan
exposure resulting from outsourcing, such as performing security control losses under the previous GAAP methodology, and, thus, impact its results of
assessments of third-party vendors and limiting third-party access to the operations and financial condition, as well as regulatory capital due to the
least privileged level necessary to perform job functions, these actions cannot CECL phase-in beginning January 1, 2022.
prevent all third-party-related cyber attacks or data breaches.

50
 Moreover, Citi has incurred losses related to its foreign operations that In addition, in October 2020, Citigroup and Citibank entered into consent
are reported in the CTA components of Accumulated other comprehensive orders with the FRB and OCC that require Citigroup and Citibank to make
income (loss) (AOCI). In accordance with U.S. GAAP, a sale, substantial improvements in various aspects of enterprise-wide risk management,
liquidation or any other deconsolidation event of any foreign operations, compliance, data quality management and governance and internal controls
such as those related to Citi’s legacy or exit businesses, would result in (see “Citi’s Consent Order Compliance” above and the legal and regulatory
reclassification of any foreign CTA component of AOCI related to that proceedings risk factor below).
foreign operation, including related hedges and taxes, into Citi’s earnings. Citi’s risk management processes, strategies and models are inherently
For example, Citi incurred a pretax loss of approximately $680 million limited because they involve techniques, including the use of historical data
($580 million after-tax) in the third quarter of 2021 related to the sale of in many circumstances, assumptions and judgments that cannot anticipate
Citi’s Australia consumer banking business in Asia GCB, primarily reflecting every economic and financial outcome in the markets in which Citi operates,
the impact of a CTA loss. For additional information on Citi’s accounting nor can they anticipate the specifics and timing of such outcomes. Citi could
policy for foreign currency translation and its foreign CTA components incur significant losses, and its regulatory capital and capital ratios could be
of AOCI, see Notes 1 and 19 to the Consolidated Financial Statements. For negatively impacted, if Citi’s risk management processes, including its ability
additional information on the key areas for which assumptions and estimates to manage and aggregate data in a timely and accurate manner, strategies or
are used in preparing Citi’s financial statements, including those related to models are deficient or ineffective. Such deficiencies or ineffectiveness could
Citi’s ACL, see “Significant Accounting Policies and Significant Estimates” also result in inaccurate financial, regulatory or risk reporting.
below and Notes 1 and 27 to the Consolidated Financial Statements. Moreover, Citi’s Basel III regulatory capital models, including its
credit, market and operational risk models, currently remain subject to
Changes to Financial Accounting and Reporting Standards ongoing regulatory review and approval, which may result in refinements,
or Interpretations Could Have a Material Impact on How Citi modifications or enhancements (required or otherwise) to these models.
Records and Reports Its Financial Condition and Results Modifications or requirements resulting from these ongoing reviews, as well
of Operations. as any future changes or guidance provided by the U.S. banking agencies
Periodically, the Financial Accounting Standards Board (FASB) issues regarding the regulatory capital framework applicable to Citi, have resulted
financial accounting and reporting standards that govern key aspects of Citi’s in, and could continue to result in, significant changes to Citi’s risk-
financial statements or interpretations thereof when those standards become weighted assets. These changes can negatively impact Citi’s capital ratios and
effective, including those areas where Citi is required to make assumptions its ability to achieve its regulatory capital requirements.
or estimates. Changes to financial accounting or reporting standards or
interpretations, whether promulgated or required by the FASB or other CREDIT RISKS
regulators, could present operational challenges and could also require Credit Risk and Concentrations of Risk Can Increase
Citi to change certain of the assumptions or estimates it previously used in the Potential for Citi to Incur Significant Losses.
preparing its financial statements, which could negatively impact how it Credit risk primarily arises from Citi’s lending and other businesses in
records and reports its financial condition and results of operations generally both ICG and GCB. Citi has credit exposures to consumer, corporate and
and/or with respect to particular businesses. For additional information on public sector borrowers and other counterparties in the U.S. and various
Citi’s accounting policies and changes in accounting, including the expected countries and jurisdictions globally, including end-of-period consumer
impacts on Citi’s results of operations and financial condition, see Note 1 to loans of $271 billion and end-of-period corporate loans of $397 billion at
the Consolidated Financial Statements. year-end 2021.
A default by a borrower or other counterparty, or a decline in the credit
If Citi’s Risk Management Processes, Strategies or Models Are quality or value of any underlying collateral, exposes Citi to credit risk.
Deficient or Ineffective, Citi May Incur Significant Losses Despite Citi’s target client strategy, various macroeconomic, geopolitical
and Its Regulatory Capital and Capital Ratios Could Be and other factors, among other things, can increase Citi’s credit risk and
Negatively Impacted. credit costs, particularly for certain sectors, industries or countries (for
Citi utilizes a broad and diversified set of risk management and mitigation additional information, see the pandemic-related, co-branding and private
processes and strategies, including use of models in enacting processes label credit card and macroeconomic challenges and uncertainties risk
and strategies as well as in analyzing and monitoring the various risks factors above and the emerging markets risk factor below). For example, a
Citi assumes in conducting its activities. For example, Citi uses models as weakening of economic conditions, including higher unemployment levels,
part of its comprehensive stress testing initiatives across the Company. Citi can adversely affect borrowers’ ability to repay their obligations. In addition,
also relies on data to aggregate, assess and manage various risk exposures. weakening economic conditions may result in Citi being unable to liquidate
Management of these risks is made even more challenging within a global its collateral, as well as disputes with counterparties regarding the valuation
financial institution such as Citi, particularly given the complex, diverse and of collateral Citi holds and Citi being unable to realize the fair value of
rapidly changing financial markets and conditions in which Citi operates as such collateral.
well as that losses can occur unintentionally from untimely, inaccurate or
incomplete processes.

51
 While Citi provides reserves for expected losses for its credit exposures, as LIQUIDITY RISKS
applicable, such reserves are subject to judgments and estimates that could The Maintenance of Adequate Liquidity and Funding Depends
be incorrect or differ from actual future events. Under the CECL accounting on Numerous Factors, Including Those Outside of Citi’s
standard, the ACL reflects expected losses, rather than incurred losses, which Control, Such as Market Disruptions and Increases in Citi’s
has resulted in and could lead to additional volatility in the allowance and Credit Spreads.
the provision for credit losses as forecasts of economic conditions change. As a large, global financial institution, adequate liquidity and sources of
In addition, Citi’s future allowance may be affected by seasonality of its funding are essential to Citi’s businesses. Citi’s liquidity and sources of
cards portfolio balances based on historical evidence showing that (i) credit funding can be significantly and negatively impacted by factors it cannot
card balances typically decrease during the first and second quarters, as control, such as general disruptions in the financial markets, governmental
borrowers use tax refunds to pay down balances; and (ii) balances increase fiscal and monetary policies, regulatory changes or negative investor
during the third and fourth quarters each year as payments are no longer perceptions of Citi’s creditworthiness, unexpected increases in cash or
impacted by tax refunds and the holiday season approaches. However, these collateral requirements and the inability to monetize available liquidity
seasonal trends could be affected in 2022 due to the impacts of the pandemic, resources, whether due to the pandemic or otherwise. Citi competes with
government stimulus and expiration of consumer and small business relief other banks and financial institutions for both institutional and consumer
programs. For additional information, see the incorrect assumptions or deposits, which represent Citi’s most stable and lowest cost source of
estimates and changes to financial accounting and reporting standards long-term funding. The competition for deposits has continued to increase
risk factors above. For additional information on Citi’s ACL, see “Significant in recent years, including, among others, as a result of online banks and
Accounting Policies and Significant Estimates” below and Notes 1 and 15 to digital banking. Furthermore, although Citi has had robust deposit growth
the Consolidated Financial Statements. For additional information on Citi’s since the onset of the pandemic, it remains unclear how “sticky” (likely
credit and country risk, see each respective business’s results of operations to remain at Citi) those deposits may be, particularly in a less monetarily
above and “Managing Global Risk—Credit Risk” and “Managing Global accommodative environment.
Risk—Other Risks—Country Risk” below and Notes 14 and 15 to the Moreover, Citi’s costs to obtain and access secured funding and
Consolidated Financial Statements. long-term unsecured funding are directly related to its credit spreads
Concentrations of risk to clients or counterparties engaged in the same and changes in interest and currency exchange rates. Changes in credit
or related industries or doing business in a particular geography, especially spreads are driven by both external market factors and factors specific to
credit and market risks, can also increase Citi’s risk of significant losses. As Citi, such as negative views by investors of the financial services industry
of year-end 2021, Citi’s most significant concentration of credit risk was with or Citi’s financial prospects, and can be highly volatile. For additional
the U.S. government and its agencies, which primarily results from trading information on Citi’s primary sources of funding, see “Managing Global
assets and investments issued by the U.S. government and its agencies (for Risk—Liquidity Risk” below.
additional information, including concentrations of credit risk to other Citi’s ability to obtain funding may be impaired and its cost of funding
public sector entities, see Note 23 to the Consolidated Financial Statements). could increase if other market participants are seeking to access the markets
In addition, Citi routinely executes a high volume of securities, trading, at the same time, or if market appetite declines, as is likely to occur in a
derivative and foreign exchange transactions with non-U.S. sovereigns and liquidity stress event or other market crisis. A sudden drop in market liquidity
with counterparties in the financial services industry, including banks, could also cause a temporary or lengthier dislocation of underwriting and
insurance companies, investment banks, governments, central banks and capital markets activity. In addition, clearing organizations, central banks,
other financial institutions. Moreover, Citi has indemnification obligations in clients and financial institutions with which Citi interacts may exercise the
connection with various transactions that expose it to concentrations of risk, right to require additional collateral based on their perceptions or the market
including credit risk from hedging or reinsurance arrangements related to conditions, which could further impair Citi’s access to and cost of funding.
those obligations (for additional information about these exposures, see Note In addition, as a holding company, Citi relies on interest, dividends,
26 to the Consolidated Financial Statements). A rapid deterioration of a large distributions and other payments from its subsidiaries to fund dividends
borrower or other counterparty or within a sector or country in which Citi has as well as to satisfy its debt and other obligations. Several of Citi’s U.S. and
large exposures or indemnifications or unexpected market dislocations could non-U.S. subsidiaries are or may be subject to capital adequacy or other
cause Citi to incur significant losses. liquidity, regulatory or contractual restrictions on their ability to provide
such payments, including any local regulatory stress test requirements.
Citi’s broker-dealer and bank subsidiaries are subject to restrictions on
their ability to lend or transact with affiliates, as well as restrictions on their
ability to use funds deposited with them in brokerage or bank accounts to
fund their businesses. Limitations on the payments that Citi receives from
its subsidiaries could also impact its liquidity. A bank holding company is

52
required by law to act as a source of financial and managerial strength for its COMPLIANCE RISKS
subsidiary banks. As a result, the FRB may require Citi to commit resources Ongoing Interpretation and Implementation of Regulatory
to its subsidiary banks even if doing so is not otherwise in the interests of Citi and Legislative Requirements and Changes and Heightened
or its shareholders or creditors, reducing the amount of funds available to Regulatory Scrutiny and Expectations in the U.S. and Globally
meet its obligations. In addition, in the event of a subsidiary’s liquidation or Have Increased Citi’s Compliance, Regulatory and Other Risks
reorganization, Citi’s right to participate in a distribution of such subsidiary’s and Costs.
assets is subject to the prior claims of the subsidiary’s creditors. Citi is continually required to interpret and implement extensive and
frequently changing regulatory and legislative requirements in the U.S.
The Credit Rating Agencies Continuously Review the Credit and other jurisdictions in which it does business, resulting in substantial
Ratings of Citi and Certain of Its Subsidiaries, and a Ratings compliance, regulatory and other risks and costs. In addition, there are
Downgrade Could Have a Negative Impact on Citi’s Funding heightened regulatory scrutiny and expectations in the U.S. and globally
and Liquidity Due to Reduced Funding Capacity and for large financial institutions, as well as their employees and agents, with
Increased Funding Costs, Including Derivatives Triggers That respect to governance, infrastructure, data and risk management practices
Could Require Cash Obligations or Collateral Requirements. and controls. These requirements and expectations also include, among
The credit rating agencies, such as Fitch, Moody’s and S&P Global Ratings, other things, those related to customer and client protection, market
continuously evaluate Citi and certain of its subsidiaries. Their ratings of Citi practices, anti-money laundering and sanctions. A failure to comply with
and its more significant subsidiaries’ long-term/ senior debt and short-term/ these requirements and expectations or resolve any identified deficiencies
commercial paper are based on a number of factors, including standalone could result in increased regulatory oversight and restrictions, enforcement
financial strength, as well as factors that are not entirely within the proceedings, penalties and fines (for additional information, see the legal
control of Citi and its subsidiaries, such as the agencies’ proprietary rating and regulatory proceedings risk factor below).
methodologies and assumptions, and conditions affecting the financial Over the past several years, Citi has been required to implement a
services industry and markets generally. significant number of regulatory and legislative changes across all of
Citi and its subsidiaries may not be able to maintain their current its businesses and functions, and these changes continue. The changes
respective ratings. A ratings downgrade could negatively impact Citi’s ability themselves may be complex and subject to interpretation, and will
to access the capital markets and other sources of funds as well as the costs of require continued investments in Citi’s global operations and technology
those funds, and its ability to maintain certain deposits. A ratings downgrade solutions. In some cases, Citi’s implementation of a regulatory or legislative
could also have a negative impact on Citi’s funding and liquidity due to requirement is occurring simultaneously with changing or conflicting
reduced funding capacity and the impact from derivative triggers, which regulatory guidance, legal challenges or legislative action to modify or repeal
could require Citi to meet cash obligations and collateral requirements. existing rules or enact new rules. Moreover, in some cases, there have been
In addition, a ratings downgrade could have a negative impact on other entirely new regulatory or legislative requirements or regimes, resulting in
funding sources such as secured financing and other margined transactions large volumes of regulation and potential uncertainty regarding regulatory
for which there may be no explicit triggers, and on contractual provisions expectations for compliance.
and other credit requirements of Citi’s counterparties and clients that may Examples of regulatory or legislative changes that have resulted in
contain minimum ratings thresholds in order for Citi to hold third-party increased compliance risks and costs include (i) various laws relating to
funds. Some entities could have ratings limitations on their permissible the limitation of cross-border data movement and/or collection and use
counterparties, of which Citi may or may not be aware. of customer information, including data localization and protection and
Furthermore, a credit ratings downgrade could have impacts that may privacy laws, which also can conflict with or increase compliance complexity
not be currently known to Citi or are not possible to quantify. Certain of with respect to other laws, including anti-money laundering laws; (ii) the
Citi’s corporate customers and trading counterparties, among other clients, FRB’s “total loss absorbing capacity” (TLAC) requirements; and (iii) the
could re-evaluate their business relationships with Citi and limit the trading U.S. banking agencies’ regulatory capital rules and requirements, which
of certain contracts or market instruments with Citi in response to ratings have continued to evolve (for additional information, see the capital return
downgrades. Changes in customer and counterparty behavior could impact risk factor and “Capital Resources” above). In addition, the U.S. banking
not only Citi’s funding and liquidity but also the results of operations of agencies have prioritized issues of social, economic and racial justice, and
certain Citi businesses. For additional information on the potential impact are in the process of considering ways in which these issues can be mitigated,
of a reduction in Citi’s or Citibank’s credit ratings, see “Managing Global including through rulemaking, supervision and other means.
Risk—Liquidity Risk” below. Increased and ongoing compliance and regulatory requirements,
uncertainties, scrutiny and expectations have resulted in higher compliance
costs for Citi, in part due to an increase in risk, regulatory and compliance
staff over the last several years. Extensive and changing compliance

53
requirements can also result in increased reputational and legal risks for Citi, U.S. and non-U.S. regulators have been increasingly focused on “conduct
as failure to comply with regulations and requirements, or failure to comply risk,” a term used to describe the risks associated with behavior by employees
with regulatory expectations, can result in enforcement and/or regulatory and agents, including third parties, that could harm clients, customers,
proceedings, penalties and fines. employees or the integrity of the markets, such as improperly creating,
selling, marketing or managing products and services or improper incentive
Citi Is Subject to Extensive Legal and Regulatory Proceedings, compensation programs with respect thereto, failures to safeguard a party’s
Examinations, Investigations, Consent Orders and Related personal information, or failures to identify and manage conflicts of interest.
Compliance Efforts and Other Inquiries That Could Result in In addition to the greater focus on conduct risk, the general heightened
Significant Monetary Penalties, Supervisory or Enforcement scrutiny and expectations from regulators could lead to investigations and
Orders, Business Restrictions, Limitations on Dividends, other inquiries, as well as remediation requirements, more regulatory or
Changes to Directors and/or Officers and Collateral other enforcement proceedings, civil litigation and higher compliance and
Consequences Arising from Such Outcomes. other risks and costs.
At any given time, Citi is a party to a significant number of legal and Further, while Citi takes numerous steps to prevent and detect conduct
regulatory proceedings and is subject to numerous governmental and by employees and agents that could potentially harm clients, customers,
regulatory examinations, investigations, consent orders and related employees or the integrity of the markets, such behavior may not always be
compliance efforts, and other inquiries. Citi can also be subject to deterred or prevented. Banking regulators have also focused on the overall
enforcement proceedings not only because of violations of laws and culture of financial services firms, including Citi.
regulations, but also due to failures, as determined by its regulators, to have In addition to regulatory restrictions or structural changes that could
adequate policies and procedures, or to remedy deficiencies on a timely basis. result from perceived deficiencies in Citi’s culture, such focus could also
The October 2020 FRB and OCC consent orders require Citigroup and lead to additional regulatory proceedings. Furthermore, the severity of
Citibank to implement targeted action plans and quarterly progress reports the remedies sought in legal and regulatory proceedings to which Citi is
detailing the results and status of improvements relating principally subject has remained elevated. U.S. and certain non-U.S. governmental
to various aspects of enterprise-wide risk management, compliance, entities have increasingly brought criminal actions against, or have sought
data quality management and governance and internal controls. These criminal convictions from, financial institutions and individual employees,
improvements will result in continued significant investments by Citi during and criminal prosecutors in the U.S. have increasingly sought and
2022 and beyond, as an essential part of Citi’s broader transformation efforts obtained criminal guilty pleas or deferred prosecution agreements against
to enhance its infrastructure, governance, processes and risk and controls. corporate entities and individuals and other criminal sanctions for those
Although there are no restrictions on Citi’s ability to serve its clients, institutions and individuals. These types of actions by U.S. and international
the OCC consent order requires Citibank to obtain prior approval of any governmental entities may, in the future, have significant collateral
significant new acquisition, including any portfolio or business acquisition, consequences for a financial institution, including loss of customers and
excluding ordinary course transactions. Moreover, the OCC consent order business, and the inability to offer certain products or services and/or operate
provides that the OCC has the right to assess future civil money penalties certain businesses. Citi may be required to accept or be subject to similar
or take other supervisory and/or enforcement actions, including where the types of criminal remedies, consent orders, sanctions, substantial fines and
OCC determines Citibank has not made sufficient and sustainable progress penalties, remediation and other financial costs or other requirements in the
to address the required improvements. Such actions by the OCC could future, including for matters or practices not yet known to Citi, any of which
include imposing business restrictions, including possible limitations on could materially and negatively affect Citi’s businesses, business practices,
the declaration or payment of dividends and changes in directors and/or financial condition or results of operations, require material changes in Citi’s
senior executive officers. More generally, the OCC and/or the FRB could take operations or cause Citi reputational harm.
additional enforcement or other actions if the regulatory agency believes Further, many large claims—both private civil and regulatory—asserted
that Citi has not met regulatory expectations regarding compliance with the against Citi are highly complex, slow to develop and may involve novel
consent orders. For additional information regarding the consent orders, see or untested legal theories. The outcome of such proceedings is difficult to
“Citi’s Consent Order Compliance” above. predict or estimate until late in the proceedings. Although Citi establishes
The global judicial, regulatory and political environment has generally accruals for its legal and regulatory matters according to accounting
been challenging for large financial institutions. The complexity of the requirements, Citi’s estimates of, and changes to, these accruals involve
federal and state regulatory and enforcement regimes in the U.S., coupled significant judgment and may be subject to significant uncertainty, and
with the global scope of Citi’s operations, also means that a single event the amount of loss ultimately incurred in relation to those matters may
or issue may give rise to a large number of overlapping investigations and be substantially higher than the amounts accrued (see the incorrect
regulatory proceedings, either by multiple federal and state agencies and assumptions or estimates risk factor above). In addition, certain settlements
authorities in the U.S. or by multiple regulators and other governmental are subject to court approval and may not be approved.
entities in different jurisdictions, as well as multiple civil litigation claims in
multiple jurisdictions.

54
OTHER RISKS Climate risks can arise from both physical risks (those risks related to
Citi’s Presence in the Emerging Markets Subjects It to Various the physical effects of climate change) and transition risks (risks related to
Risks as well as Increased Compliance and Regulatory Risks regulatory, compliance, technological, stakeholder and legal changes from
and Costs. a transition to a low-carbon economy). The physical and transition risks
During 2021, emerging markets revenues accounted for approximately 35% can manifest themselves differently across Citi’s risk categories in the short,
of Citi’s total revenues (Citi generally defines emerging markets as countries medium and long terms.
in Latin America, Asia (other than Japan, Australia and New Zealand), and The physical risk from climate change could result from increased
central and Eastern Europe, the Middle East and Africa in EMEA). frequency and/or severity of adverse weather events. For example, adverse
Although Citi continues to pursue its target client strategy, Citi’s presence weather events could damage or destroy Citi’s or its counterparties’ properties
in the emerging markets subjects it to various risks, such as limitations or and other assets and disrupt operations, making it more difficult for
unavailability of hedges on foreign investments; foreign currency volatility, counterparties to repay their obligations, whether due to reduced profitability,
including devaluations, sovereign volatility, election outcomes, regulatory asset devaluations or otherwise. These events could also increase the volatility
changes and political events; foreign exchange controls, including inability in financial markets affecting Citi’s trading businesses and increase its
to access indirect foreign exchange mechanisms; macroeconomic volatility counterparty exposures and other financial risks, which may result in lower
and disruptions, including with respect to commodity prices; limitations on revenues and higher cost of credit.
foreign investment; sociopolitical instability (including from hyperinflation); Transition risks may arise from changes in regulations or market
fraud; nationalization or loss of licenses; business restrictions; sanctions or preferences toward a low-carbon economy, which in turn could have negative
asset freezes; potential criminal charges; closure of branches or subsidiaries; impacts on asset values, results of operations or the reputations of Citi and
and confiscation of assets, whether related to geopolitical conflicts or its customers and clients. For example, Citi’s corporate credit exposures
otherwise; and these risks can be exacerbated in the event of a deterioration include oil and gas, power and other industries that may experience reduced
in relationships between the U.S. and an emerging market country. For demand for carbon-intensive products due to the transition to a low-carbon
example, Citi operates in several countries that have, or have had in the past, economy. Moreover, U.S. and non-U.S. banking regulators and others are
strict capital and currency controls, such as Argentina, that limit its ability increasingly focusing on the issue of climate risk at financial institutions,
to convert local currency into U.S. dollars and/or transfer funds outside of both directly and with respect to their clients. As an example, on December
those countries. Among other things, Citi faces a risk of devaluation on its 16, 2021, the OCC requested feedback on draft principles designed to support
unhedged Argentine peso-denominated assets, which continue to increase the identification and management of climate-related financial risks at
(for further information on this and other risks, see “Managing Global institutions with more than $100 billion in total consolidated assets.
Risk—Other Risks—Country Risk—Argentina” below). Even as regulators begin to mandate additional disclosure of climate-
Moreover, if the economic situation in an emerging markets country in related information by companies across sectors, there may continue to be a
which Citi operates were to deteriorate below a certain level, U.S. regulators lack of information for more robust climate-related risk analyses. Third party
may impose mandatory loan loss or other reserve requirements on Citi, exposures to climate-related risks and other data generally are limited in
which would increase its credit costs and decrease its earnings (for further availability and variable in quality. Modeling capabilities to analyze climate-
information, see “Managing Global Risk—Other Risks—Country Risk— related risks and interconnections are improving but remain incomplete.
Argentina” below). Legislative or regulatory uncertainties and changes regarding climate-related
In addition, political turmoil and instability have occurred in various risk management and disclosures are likely to result in higher regulatory,
regions and emerging market countries across the globe which have compliance, credit, reputational and other risks and costs (for additional
required, and may continue to require, management time and attention information, see the ongoing regulatory and legislative uncertainties and
and other resources (such as monitoring the impact of sanctions on certain changes risk factor above). In addition, Citi could face increased regulatory,
emerging markets economies as well as impacting Citi’s businesses and reputational and legal scrutiny as a result of its climate risk, sustainability
results of operations in affected countries). and other ESG related commitments.
For information on Citi’s climate and other sustainability initiatives, see
Climate Change Could Have a Negative Impact on Citi’s Results “Sustainability and Other ESG Matters” below. For additional information
of Operations and Financial Condition. on Citi’s management of climate risk, see “Managing Global Risk—Other
Citi operates in countries, states and regions in which many of its businesses, Risks—Climate Risk” below.
and the activities of many of its customers and clients, are exposed to
the adverse impacts of climate change, as well as uncertainties related to
the transition to a low-carbon economy. Climate change presents both
immediate and long-term risks to Citi and its customers and clients, with the
risks expected to increase over time.

55
The Transition Away from and Discontinuance of the London used (including, without limitation, as a representation of the unsecured
Inter-Bank Offered Rate (LIBOR) and Any Other Interest Rate short-term funding costs of banks), which may, in turn, reduce their
Benchmark Could Have Adverse Consequences for Market market acceptance. Any failure of the alternative rates to gain broad market
Participants, Including Citi. acceptance could adversely affect market demand for Citi’s products or
For decades, LIBOR and other rates or indices deemed to be benchmarks securities linked to such alternative rates and thus market prices of such
have been widely used across financial products and markets globally. These instruments. As part of its transition, Citi is relying or has relied on guidance
benchmarks have been the subject of ongoing national and international provided by the accounting standard setters related to the transition away
regulatory scrutiny and reform, resulting in regulators generally expecting from LIBOR. In the event that such guidance is insufficient or otherwise
or requiring banks, including Citi, to cease entering into new contracts that unable to be implemented as intended, LIBOR transition could disrupt Citi’s
reference USD LIBOR as a benchmark by December 31, 2021. The LIBOR hedge accounting relationships and/or lead to increased costs in connection
administrator ceased publication of non-USD LIBOR and one-week and with determining whether contract amendments result in a modification or
two-month USD LIBOR on a representative basis on December 31, 2021, with an extinguishment from an accounting perspective. Changes in observability
plans to cease publication of all other USD LIBOR tenors on June 30, 2023. of the alternative reference rates could impact the fair value hierarchy
As a result, Citi ceased entering into new contracts referencing USD LIBOR classification of financial instruments and contracts.
as of January 1, 2022, other than for limited purposes as permitted by Moreover, the LIBOR transition presents challenges related to contractual
regulatory guidance. mechanics of existing financial instruments and contracts that reference
LIBOR and other benchmarks have been used in a substantial number such benchmarks that mature after discontinuance of the relevant
of Citi’s outstanding securities and products, including, among others, benchmark. Certain of these legacy instruments and contracts do not provide
derivatives, corporate loans, commercial and residential mortgages, credit for fallbacks to alternative reference rates, which makes it unclear what the
cards, securitized products and other structured securities. Despite ongoing applicable future replacement benchmark rates and associated payments
actions to prepare for the transition away from LIBOR (see “Managing might be after the current benchmark’s cessation. Citi may not be able
Global Risk—Other Risks—LIBOR Transition Risk” below), market to amend certain instruments and contracts due to an inability to obtain
participants, including Citi, may not be adequately prepared for uncertainties sufficient levels of consent from counterparties or security holders. Although
associated with these benchmarks’ discontinuance or, as necessary, be this will depend on the precise contractual terms of the instrument, such
able to successfully modify their outstanding contracts or products that consent requirements are often conditions of securities, such as floating
reference these benchmarks. For example, the transition away from and rate notes.
discontinuance of LIBOR or any other benchmark rate presents various Even if the instruments and contracts provide for a transition to an
uncertainties and operational, legal, reputational or compliance, financial alternative reference rate, the new rate may, particularly in times of financial
and other risks and challenges to holders of these contracts and products, stress, significantly differ from the prior rates. As a result, Citi may need
as well as financial markets and institutions, including Citi. These include, to consider proactively addressing any contractual uncertainties or rate
among others, the pricing, liquidity, observability, value of, return on and differences in such instruments and contracts, which would likely be both
market for financial instruments and contracts that reference LIBOR or any time consuming and costly, and may not ultimately be successful. While
other benchmark rate. statutory solutions have been enacted in certain jurisdictions to address
While Citi has adopted alternative reference rates for new contracts to these contractual concerns (for example, the State of New York and the EU),
replace these outgoing benchmarks, in some instances, it is possible that the availability and effectiveness of these statutory mechanisms to cover
the characteristics of these new rates may not be sufficiently similar to, all impacted financial instruments and products to which Citi is a party
or produce the economic equivalent of, the benchmark rates that they is uncertain.
are intended to replace. Alternative reference rates, such as the Secured In addition, the transition away from and discontinuance of LIBOR and
Overnight Financing Rate (SOFR), are calculated using components other benchmark rates have subjected financial institutions, including Citi,
different from those used in the calculation of LIBOR and may fluctuate to heightened scrutiny from regulators. Failure to successfully transition
differently than, and not be representative of, LIBOR. In order to compensate away from LIBOR and other benchmark rates could result in adverse
for these differences, certain of Citi’s financial instruments and commercial regulatory actions, disputes, including potential litigation involving holders
agreements allow for a benchmark replacement adjustment. However, of outstanding products and contracts that reference LIBOR, and other
there can be no assurance that any benchmark replacement adjustment benchmark rates and reputational harm to Citi. Citi may also need to further
will be sufficient to produce the economic equivalent of LIBOR, either invest in and develop internal systems and infrastructure to transition to
at the benchmark replacement date or over the life of such instruments alternative benchmark rates to manage its businesses and support its clients.
and agreements.
Further, investors, counterparties and other market participants may not
consider the new alternative rates to be a suitable substitute or successor
for all of the purposes for which these benchmarks have historically been

56
SUSTAINABILITY AND OTHER
ESG MATTERS
Introduction • The first pillar, “Low-Carbon Transition,” focuses on financing and
Citi has progressively developed its understanding of environmental, social facilitating low-carbon solutions and supporting Citi’s clients in their
and governance (ESG) issues for more than 20 years and has a demonstrated decarbonization and transition strategies.
record of ESG progress, including participating in the creation and adoption • The second pillar, “Climate Risk,” focuses on Citi’s efforts to measure,
of ESG-related principles and standards. This section summarizes some of manage and reduce the climate risk and impact of its client portfolio.
Citi’s key ESG initiatives, including its Sustainable Progress Strategy and net Areas of activity include, portfolio analysis and stakeholder engagement as
zero and Action for Racial Equity commitments. well as enhancing TCFD implementation and disclosure.
In January 2022, Citi published its 2021 Task Force on Climate-Related
• The third pillar, “Sustainable Operations,” focuses on Citi’s efforts to
Financial Disclosures (TCFD) Report to provide its stakeholders with
reduce the environmental footprint of its facilities and strengthen its
information on Citi’s continued progress to address climate risk and to
sustainability culture. This includes minimizing the impact of its global
fulfill its commitment to publish an initial net zero plan within one year
operations through operational footprint goals and further integrates
of announcing the net zero commitment. This represents Citi’s fourth
sustainable practices across all countries in which Citi operates.
TCFD Report.
For information regarding Citi’s management of climate risk, see Net Zero Emissions by 2050
“Managing Global Risk—Other Risks—Climate Risk” below. In March 2021, Citi announced its commitment to achieving net zero
ESG and Climate-Related Governance
greenhouse gas (GHG) emissions associated with its financing by 2050,
and net zero GHG emissions for its operations by 2030; both are significant
ESG Governance targets given the size and breadth of Citi’s lending portfolios and businesses.
Citi’s Board of Directors (Board) provides oversight of Citi’s management Citi made this commitment as part of its ongoing work to reduce its
activities to ensure responsible business practices (for additional information, climate impact and help address the challenges that climate change poses
see “Managing Global Risk—Risk Governance” below). For example, to the global economy and broader society. Citi’s net zero commitment
the Nomination, Governance and Public Affairs Committee of the Board demonstrates how identifying, assessing and managing climate-related risks
oversees many of Citi’s ESG activities, including reviewing Citi’s policies and opportunities remains a top business priority for Citi.
and programs for environmental and social sustainability, climate change, While many financial institutions, including Citi, face increasing
human rights, diversity and other ESG issues, as well as advising on public pressure to divest from carbon-intensive sectors, Citi believes it has
engagement with external stakeholders. an important role to play in advising and financing the transition to net
The Risk Management Committee of the Board provides oversight of Citi’s zero, and it plans to work closely with clients in this effort. Citi recognizes
Independent Risk Management function and reviews Citi’s risk policies and that large-scale, rapid divestment could result in an abrupt and disorderly
frameworks, including receiving climate risk-related updates. transition to a low-carbon economy, creating both economic and social
In 2021, Citi formed a Global ESG Council consisting of senior members upheaval on a global scale. Citi believes that an orderly, responsible and
of its management in order to provide enhanced oversight of Citi’s ESG equitable transition, which accounts for the immediate economic needs
goals and activities. In addition, a number of teams and senior managers of communities, workers, environmental justice and broader economic
contribute to the oversight of different areas such as sustainability; development concerns, is essential for the retention of political and social
community investing; talent and diversity; ethics and business practices; support to move to a low-carbon economy.
and remuneration. Citi’s 2021 TCFD Report discusses its initial 2050 net zero plan, including
2030 emissions targets for its Energy and Power loan portfolios that
Climate Change Governance
were developed in line with the Net Zero Banking Alliance Guidelines for
Citi’s oversight of climate risk has continued to evolve with its expanding
Climate Target Setting for Banks. Citi’s net zero plan incorporates a twofold
climate commitments. In 2021, Citi established its ESG Council, expanded
approach: (i) assessment of climate-related factors affecting its clients, and
its Climate Risk team and enhanced its climate risk and net zero-related
(ii) engagement to understand their transition opportunities.
governance through creation of a Net Zero Task Force. The Task Force, led by
Citi’s net zero approach includes the following areas of activity:
Citi’s Chief Sustainability Officer and including leaders from various business
units, was established to support the development and launch of Citi’s net • Client Transition Assessment, Advisory and Finance: Seek to
zero plan. understand clients’ GHG emissions and work with them to develop their
transition plans and advise on capacity building
Key ESG Initiatives
• Clean Tech Finance: Support clients and expedite the commercialization
Sustainable Progress Strategy and adoption of climate technology globally through transition and
Citi’s Sustainable Progress Strategy is summarized in its Environmental environmental finance as well as public-private partnerships
and Social Policy Framework. The three pillars of the strategy each
• Public Policy Engagement: Support enabling public policy and
have climate-related elements and serve as the foundation for Citi’s regulation in the U.S. and other countries, including through trade
climate commitments. associations and other industry groups

57
• Risk Management: Assess climate risk exposure across Citi’s lending In line with Citi’s continued commitment to expand access to banking
portfolios and review client carbon reduction progress, with ongoing products and services that can help advance economic progress—especially
review and refining of Citi’s ESRM Policy as needed for underbanked and unbanked communities—on February 24, 2022, Citi
• Portfolio Management: Active portfolio management to align with announced plans to eliminate overdraft fees, returned item fees and overdraft
net zero targets, including considerations of transition measures taken protection fees by mid 2022. In addition to eliminating these fees, Citi will
by clients continue to offer a robust suite of free overdraft protection services for its
consumers. See Note 5 to the Consolidated Financial Statements for details of
The 2050 net zero commitment includes the following framework, Citi’s Commissions and fees revenues.
delineating the key areas required to achieve its commitment:
Additional Information
• Calculate Emissions: Calculate baseline financed emissions for each For additional information on Citi’s environmental and social policies and
carbon-intensive sector priorities, see Citi’s website at www.citigroup.com. Click on “About Us” and
• Transition Pathway: Identify the appropriate climate scenario then “Environmental, Social and Governance.” For information on Citi’s
transition pathway ESG and Sustainability (including climate change) governance, see Citi’s
• Target Setting: Establish emissions reduction targets for 2030 and beyond 2021 Annual Meeting Proxy Statement available at www.citigroup.com. Click
• Implementation Strategy: Engage with and assess clients to determine on “Investors” and then “Annual Reports & Proxy Statements.”
transition opportunities The 2021 TCFD Report and any other ESG-related reports and
• External Engagement: Solicit feedback from clients, investors and other information included elsewhere on Citi’s investor relations website are
stakeholders, as the work continues to evolve and the parties collectively not incorporated by reference into, and do not form any part of this
define net zero for the banking sector 2021 Annual Report on Form 10-K.

In 2021, Citi continued to expand its participation in the financial

industry’s net zero leadership initiatives. Citi is a member of key industry
initiatives that enhance its understanding of climate-related issues, improve
its access to data and promote efficient communication and coordination
across various climate efforts. These initiatives include the Partnership
for Carbon Accounting Financials, the Net Zero Banking Alliance and the
Glasgow Financial Alliance for Net Zero.

Action for Racial Equity

Effectively responding to the needs of communities of color in the U.S.
represents a strategic imperative for the private sector. A wide range of data
and studies have found that many major gaps in economic opportunity,
education, income, housing and wealth run along racial lines, particularly
between Black and white households. These gaps have not only had
implications for Black Americans and other people of color but the broader
economy as well.
Accordingly, in September 2020, Citi and the Citi Foundation announced
Action for Racial Equity to help provide greater access to banking and credit
in communities of color, increase investment in Black-owned businesses,
expand affordable housing and homeownership among Black Americans
and advance anti-racist practices within Citi and across the financial services
industry. As part of Action for Racial Equity, Citi and the Citi Foundation
have invested more than $1 billion in strategic initiatives to help close the
racial wealth gap and increase economic mobility in the U.S. Action for
Racial Equity builds on Citi’s longstanding focus on advancing financial
inclusion and economic opportunity for communities of color in the U.S. and
accelerates its efforts in a time of increased calls for racial equity and shifting
population demographics in a changing economy.

58
HUMAN CAPITAL RESOURCES
AND MANAGEMENT
Attracting and retaining a highly qualified and motivated workforce is a
strategic priority for Citi. Citi seeks to enhance the competitive strength of its
workforce through the following efforts:
• Continuous innovation in recruiting, training, compensation, promotion
and engagement of colleagues.
• Actively seeking and listening to diverse perspectives at all levels of the
organization.
• Optimizing transparency concerning workforce goals, to promote
accountability, credibility and effectiveness in achieving those goals.

Workforce Size and Distribution

As of December 31, 2021, Citi employed approximately 223,400 colleagues in nearly 100 countries. The Company’s workforce is constantly evolving and
developing, benefiting from a strong mix of internal and external hiring into new and existing positions. In 2021, Citi welcomed 46,907 new colleagues in
addition to the roles filled by colleagues through internal mobility. The following table shows the geographic distribution of those colleagues by segment,
region and gender:
North Latin
Segment or business(1) America EMEA America Asia Total(2) Women Men Unspecified
Institutional Clients Group 19,029 18,096 7,909 25,458 70,492 44.1% 55.9% —%
Global Consumer Banking 33,898 — 33,453 32,950 100,301 57.4 42.5 0.1
Corporate/Other 23,218 10,364 7,012 12,057 52,651 46.3 53.6 0.1
Total 76,145 28,460 48,374 70,465 223,444 50.6% 49.3% 0.1%

(1) Colleague distribution is based on assigned business and region, which may not reflect where the colleague physically resides.
(2) Part-time colleagues represented less than 1.5% of Citi’s global workforce.

Board Oversight Diversity, Equity and Inclusion

Citi devotes substantial resources to managing its workforce, guided by a Citigroup’s Board is committed to ensuring that the Board and Citi’s
culture of accountability and excellence. Citigroup’s Board of Directors (the Executive Management Team (see “Managing Global Risk—Risk
Board) provides strategic oversight and direction to management regarding Governance” below) are composed of individuals whose backgrounds reflect
workforce policies and includes many members with experience in overseeing the diversity represented by Citi’s employees, customers and stakeholders. In
workforce issues. addition, over the past several years, Citi has increased efforts to diversify its
In addition, the Board’s Personnel and Compensation Committee workforce, including, among other things, taking actions with respect to pay
regularly reviews management’s achievements against human capital equity, representation goals and use of diverse slates in recruiting.
management goals, such as addressing representation of women and U.S.
Pay Equity
minorities in assistant vice president (AVP) to managing director (MD) levels,
Citi has focused on measuring and addressing pay equity within
as well as talent recruitment and development initiatives.
the organization:
The Board works with the Nomination, Governance and Public
Affairs Committee to evaluate potential successors to the Chief Executive • In 2018, Citi was the first major U.S. financial institution to publicly
Officer (CEO). With respect to regular succession of the CEO and senior release the results of a pay equity review comparing its compensation
management, Citi’s Board evaluates internal, and, when appropriate, of women to men and U.S. minorities to U.S. non-minorities. Since
external candidates. To find external candidates, Citi seeks input from 2018, Citi has continued to be transparent about pay equity, including
members of the Board, senior management and recruiting firms. To disclosing its unadjusted or “raw” pay gap for both women and
develop internal candidates, Citi engages in a number of practices, formal U.S. minorities.
and informal, designed to familiarize the Board with Citi’s talent pool. • Citi’s 2021 pay equity review determined that, on an adjusted basis,
The formal process involves an annual talent review conducted by senior women globally are paid on average more than 99% of what men are
management at which the Board studies the most promising members of paid at Citi. In addition, the review determined there was no statistically
senior management. The Board learns about each person’s experience, skills, significant difference in adjusted compensation between U.S. minorities
areas of expertise, accomplishments, goals and risk and control assessments. and non-minorities. Following the review, appropriate pay adjustments
This review is conducted at a regularly scheduled Board meeting on an were made as part of Citi’s 2021 compensation cycle.
annual basis.

59
• Citi’s 2021 raw gap analysis showed that the median pay for women • Citi has a focus on internal talent development and aims to provide
globally is 74% of the median for men, similar to 2020, and up from colleagues with career growth opportunities, with 37% of open positions
73% in 2019 and 71% in 2018. The median pay for U.S. minorities is filled internally in 2021. These opportunities are particularly important
more than 96% of the median for non-minorities, which is up from as Citi focuses on providing career paths for its internal talent base as
just under 94% in 2020, 94% in 2019 and 93% in 2018. part of its efforts to increase organic growth and promotions within
the organization.
Representation Goals
Increasing the number of women globally and U.S. Black employees into Moreover, in 2021, a diverse group of human resources and business
senior AVP to MD levels will position Citi to further close the raw pay gap stakeholders collaborated to provide input on the current state and
and increase the diversity of the Company. At the AVP to MD levels, Citi target future state for promotions at Citi. Their analysis resulted in the
established representation goals of 40% for women globally and 8% for identification of opportunities for improvement to create greater transparency
U.S. Black employees by the end of 2021. As of December 31, 2021, Citi and alignment of the promotion process across Citi’s businesses, functions
exceeded its goals for AVP to MD levels for women globally (at 40.6%) and and regions.
U.S. Black employees (at 8.1%). Wellness
Citi is the first major Wall Street bank to participate in Management During the past two years, the pandemic’s impact has been substantial on
Leadership for Tomorrow’s Black Equity at Work Certification, to help the mental and physical health of Citi colleagues and their families. As the
measure internal progress toward Black equity in the workplace. Company transforms and the future of work evolves, colleague wellness is
In addition, consistent with its ongoing support of measurement and a central component of Citi’s focus. Coming out of the pandemic, Citi has
transparency, Citi will conduct a third-party racial equity audit to help assess announced three working models: colleagues will be designated as hybrid,
the true impact of Citi’s Action for Racial Equity initiatives (for additional resident or remote, based on job-specific requirements.
information, see “Sustainability and Other ESG Matters—Action for Racial As colleagues pivoted to remote work during their respective country
Equity” above). lockdowns, Citi’s health plans also expanded to keep colleagues at home
Diverse Slates in Recruitment and safe. In the U.S., Citi offered free virtual care visits, home delivery of
In 2021, Citi expanded the use of diverse slates in its recruiting efforts to have prescriptions, enhanced bereavement leave and no-cost COVID testing.
at least two women or U.S. minorities interview for U.S.-based roles and at In addition to providing access to COVID vaccinations, which included
least two women interview for global hire roles at the AVP to MD levels. several onsite locations in Asia and the U.S., Citi organized drive-through
Since implementation, Citi has increased the share of diverse candidates flu vaccination programs in the U.S. for thousands of colleagues and
on slates by 26% and more than doubled the total number of diverse slates their family members. All colleagues globally were provided time off for
between March and December 2021. Candidate slates were as follows: vaccinations and boosters and to recover from any side effects, if needed.
To support the ongoing health of its workforce, on October 28, 2021 Citi
• 74.4% of roles included a diverse slate with at least two women globally announced a COVID-19 vaccination policy requiring all U.S. colleagues and
and/or U.S. underrepresented minorities for U.S. hires; and new hires to be fully vaccinated or receive an approved accommodation
• 92.2% of roles included a diverse slate with at least one woman globally or state-permitted exemption, as a condition of employment. As of the
and/or U.S. underrepresented minority for U.S. hires compared to 86% January 14, 2022 deadline, over 99% of U.S. colleagues were in compliance
in 2020. with the vaccine policy.
Citi also took actions to support the emotional well-being of its colleagues.
In 2021, women representation in Citi’s full-time global campus
Citi significantly enhanced free mental well-being programs in our largest
programs surpassed its goal of 50%, increasing to 51% from 49% in 2020. In
region by doubling the number of free counseling sessions for colleagues and
addition, Black and Hispanic/Latino representation within Citi’s full-time
their family members and adding real-time text, video and message-based
U.S. campus programs increased to 28% from 24% in 2020.
counseling. Citi also debuted a new online tool so that all colleagues
Workforce Development around the globe could easily find their local Employee Assistance programs
Citi highly values a workplace environment where colleagues can bring and resources. Citi also expanded live, town hall-style mental well-being
their authentic selves to work and where diverse perspectives and ideas are programming to include targeted events with subject matter experts aimed at
embraced. Citi encourages career growth and development by offering broad parents, caregivers and other at-risk groups.
and diverse opportunities to colleagues. Highlights of these opportunities Citi’s wellness vision is not simply a reaction to its external environment.
include the following: It has consistently been about nurturing colleagues and their families,
however their families are grown. Citi continues to broaden gender
• Citi provides a range of internal development and rotational programs to affirmation medical coverage and incorporate it in its basic medical plan
colleagues at all levels, including various training programs and events coverage around the world. Citi also enhanced its fertility coverage and
to assist high-performing colleagues in building the skills needed to support. In North America, Citi’s new Adoption and Surrogacy Assistance
transition to manager and supervisory roles. Program provides reimbursement to help with certain expenses in the
adoption of a child or surrogacy parenting arrangement.

60
 In early 2020, Citi expanded its Paid Parental Leave Policy to include Citi
colleagues around the world. At a minimum, all Citi colleagues are eligible
for 16 weeks of paid pregnancy leave or four weeks of paid parental bonding
leave. Colleagues working in countries that require leave policies above the
global minimum continue to maintain even longer periods of paid time off.
For information about Citi’s reliance on a highly qualified and motivated
workforce, see “Risk Factors” above. For additional information about Citi’s
human capital management initiatives and goals, see Citi’s upcoming
2022 proxy statement to be filed with the SEC in March 2022, as well as its
2020 ESG report available at www.citigroup.com. The 2020 ESG report and
other information included elsewhere on Citi’s investor relations website
are not incorporated by reference into, and do not form any part of, this
2021 Annual Report on Form 10-K.

61
This page intentionally left blank.

62
 Managing Global Risk Table of Contents

MANAGING GLOBAL RISK 64 MARKET RISK(1) 99

Overview 64 Overview 99
Market Risk of Non-Trading Portfolios 99
CREDIT RISK(1) 67
Net Interest Income at Risk 99
Overview 67
Interest Rate Risk of Investment Portfolios—
Consumer Credit 68 Impact on AOCI 99
Corporate Credit 75 Changes in Foreign Exchange Rates—
Additional Consumer and Corporate Credit Details 81 Impacts on AOCI and Capital 101
Loans Outstanding 81 Interest Revenue/Expense and
Net Interest Margin (NIM) 102
Details of Credit Loss Experience 82
Additional Interest Rate Details 104
Allowance for Credit Losses on Loans (ACLL) 84
Market Risk of Trading Portfolios 108
Non-Accrual Loans and Assets and Renegotiated Loans 86
Factor Sensitivities 109
Forgone Interest Revenue on Loans 89
Value at Risk (VAR) 109
LIQUIDITY RISK 90 Stress Testing 112
Overview 90
OPERATIONAL RISK 113
Liquidity Monitoring and Measurement 90
Overview 113
High-Quality Liquid Assets (HQLA) 91
Cybersecurity Risk 113
Loans 92
Deposits 92 COMPLIANCE RISK 114
Long-Term Debt 93
REPUTATION RISK 115
Secured Funding Transactions and Short-Term Borrowings 96
Credit Ratings 97 STRATEGIC RISK 115
OTHER RISKS 116
LIBOR Transition Risk 116
Climate Risk 116
Country Risk 118
Top 25 Country Exposures 118
Argentina 119
Russia 119
FFIEC—Cross-Border Claims on Third Parties and Local
Country Assets 120

(1) For additional information regarding certain credit risk, market risk and other quantitative and qualitative information, refer to Citi’s Pillar 3 Basel III Advanced Approaches Disclosures, as required by the rules of the
Federal Reserve Board, on Citi’s Investor Relations website.

63
MANAGING GLOBAL RISK
Overview Each of these pillars is underpinned by Supporting Capabilities, which
For Citi, effective risk management is of primary importance to its overall are the infrastructure, people, technology and data, and modelling and
operations. Accordingly, Citi’s risk management process has been designed to analytical capabilities that are in place to enable the execution of the ERM
monitor, evaluate and manage the principal risks it assumes in conducting Framework.
its activities. Specifically, the activities that Citi engages in, and the risks Citi’s approach to risk management requires that its risk-taking be
those activities generate, must be consistent with Citi’s Mission and Value consistent with its risk appetite. Risk appetite is the aggregate type and level
Proposition and the key principles that guide it, as well as Citi’s risk appetite. of risk Citi is willing to take in order to meet its strategic objectives and
As discussed above, Citi is continuing its efforts to comply with the FRB business plan. Citi’s Risk Appetite Framework sets boundaries for risk-taking
and OCC consent orders, relating principally to various aspects of risk and consists of a set of risk appetite statements as well as the governance
management, compliance, data quality management and governance, processes through which the risk appetite is established, communicated,
and internal controls (see “Citi’s Consent Order Compliance” and “Risk cascaded and monitored.
Factors—Compliance Risks” above). Citi’s risks are generally categorized and summarized as follows:
Risk management must be built on a foundation of ethical culture.
Under Citi’s Mission and Value Proposition, which was developed by its senior
• Credit risk is the risk of loss resulting from the decline in credit quality
(or downgrade risk) or failure of a borrower, counterparty, third party or
leadership and distributed throughout the Company, Citi strives to serve its
issuer to honor its financial or contractual obligations.
clients as a trusted partner by responsibly providing financial services that
enable growth and economic progress while earning and maintaining the • Liquidity risk is the risk that Citi will not be able to efficiently meet both
public’s trust by constantly adhering to the highest ethical standards. As expected and unexpected current and future cash flow and collateral
such, Citi asks all colleagues to ensure that their decisions pass three tests: needs without adversely affecting either daily operations or financial
they are in Citi’s clients’ interests, create economic value and are always conditions of Citi.
systemically responsible. In addition, Citi evaluates colleagues’ performance • Market risk (Trading and Non-Trading): Market risk of trading
against behavioral expectations set out in Citi’s Leadership Principles, which portfolios is the risk of loss arising from changes in the value of Citi’s
were designed in part to effectuate Citi’s Mission and Value Proposition. Other assets and liabilities resulting from changes in market variables, such as
culture-related efforts in connection with conduct risk, ethics and leadership, equity and commodity prices or credit spreads. Market risk of non-trading
escalation and treating customers fairly help Citi to execute its Mission and portfolios is the risk to current or projected financial condition and
Value Proposition. resilience arising from movements in interest rates and resulting from
Citi has established an Enterprise Risk Management (ERM) Framework repricing risk, basis risk, yield curve risk and options risk.
to ensure that all of Citi’s risks are managed appropriately and consistently • Operational risk is the risk of loss resulting from inadequate or failed
across Citi and at an aggregate, enterprise-wide level. The ERM Framework internal processes, people and systems, or from external events. It includes
details the principles used to support effective enterprise-wide risk legal risk, which is the risk of loss (including litigation costs, settlements
management across the end-to-end risk management lifecycle. The ERM and regulatory fines) resulting from the failure of Citi to comply with
Framework also provides clarity on the expected activities in relation to risk laws, regulations, prudent ethical standards and contractual obligations
management of the Citigroup Board of Directors (the Board), Citi’s Executive in any aspect of Citi’s business, but excludes strategic and reputation risks
Management Team (See “Risk Governance—Executive Management Team” (see below).
below) and employees across the lines of defense. The underlying pillars of • Compliance risk is the risk to current or projected financial condition
the framework encompass: and resilience arising from violations of laws, rules or regulations, or
• Culture—the core principles and behaviors that underpin a strong from non-conformance with prescribed practices, internal policies and
culture of risk awareness, in line with Citi’s Mission and Value procedures or ethical standards.
Proposition, and Leadership Principles; • Reputation risk is the risk to current or projected financial conditions
• Governance—the committee structure and reporting arrangements that and resilience arising from negative public opinion.
support the appropriate oversight of risk management activities at the • Strategic risk is the risk of a sustained impact (not episodic impact) to
Board and Executive Management Team levels; Citi’s core strategic objectives as measured by impacts on anticipated
• Risk Management—the end-to-end risk management cycle including earnings, market capitalization, or capital, arising from the external
the identification, measurement, monitoring, controlling and reporting of factors affecting the Company’s operating environment; as well as the
all risks including emerging, growing, idiosyncratic or otherwise material risks associated with defining the strategy and executing the strategy,
risks, and aggregated to an enterprise-wide level; and which are identified, measured and managed as part of the Strategic Risk
Framework at the Enterprise Level.
• Enterprise Programs—the key risk management programs performed
across the risk management lifecycle for all risk categories; these
programs also outline the specific roles played by each of the lines of
defense in these processes.

64
 Citi uses a lines of defense model as a key component of its ERM Independent Risk Management
Framework to manage its risks. The lines of defense model brings together The IRM organization sets risk and control standards for the first line of
risk-taking, risk oversight and risk assurance under one umbrella and defense and actively manages and oversees aggregate credit, market (trading
provides an avenue for risk accountability of first line of defense, a construct and non-trading), liquidity, strategic, operational and reputation risks across
for effective challenge by the second line of defense (Independent Risk Citi, including risks that span categories, such as concentration risk, country
Management and Independent Compliance Risk Management), and risk and climate risk.
empowers independent risk assurance by the third line of defense (Internal IRM is organized to align to risk categories, legal entities/regions and
Audit). In addition, Citi has enterprise support functions that support safety Company-wide, cross-risk functions or processes (i.e., foundational areas).
and soundness across Citi. Each of the lines of defense and enterprise support There are teams that report to an independent CRO for various risk categories
functions, along with the Board, are empowered to perform relevant risk and legal entities/regions. In addition, there are foundational teams that
management processes and responsibilities in order to manage Citi’s risks in report to Foundational Risk Management heads. The Risk Category, Legal
a consistent and effective manner. Entity/Regional CROs and Foundational Risk Management Heads report to
the Citigroup CRO.
First Line of Defense: Front Line Units and Front Line
Unit Activities Independent Compliance Risk Management
Citi’s first line of defense owns the risks inherent in or arising from their The ICRM organization actively oversees compliance risk across Citi, sets
business and is responsible for identifying, measuring, monitoring, compliance risk and control standards for the first line of defense to manage
controlling and reporting those risks consistent with Citi’s strategy, Mission compliance risk and promotes business conduct and activity that is consistent
and Value Proposition, Leadership Principles and risk appetite. with Citi’s Mission and Value Proposition and the compliance risk appetite.
Front line units are responsible and held accountable for managing the Citi’s objective is to embed an enterprise-wide compliance risk management
risks associated with their activities within the boundaries set by independent framework and culture that identifies, measures, monitors, controls and
risk management. They are also responsible for designing and implementing escalates compliance risk across Citi.
effective internal controls and maintaining processes for managing their risk ICRM is aligned by product line, function and geography to provide
profile, including through risk mitigation, so that it remains consistent with compliance risk management advice and credible challenge on day-to-day
Citi’s established risk appetite. matters and strategic decision-making for key initiatives. ICRM also has
Front line unit activities are considered part of the first line of defense and program-level Enterprise Compliance units responsible for setting standards
are subject to the oversight and challenge of independent risk management. and establishing priorities for program-related compliance efforts. These
The first line of defense is composed of Citi’s Business Management, Compliance Risk Management heads report directly to the CCO.
Regional and Country Management, certain Corporate Functions (Enterprise
Operations and Technology, Chief Administrative Office, Global Public Affairs, Third Line of Defense: Internal Audit
Office of the Citibank Chief Executive Officer (CEO) and Finance), as well as Internal Audit is independent of front line units and independent risk
other front line unit activities. Front line units may also include enterprise management units. The role of Internal Audit is to provide independent,
support units and activities—see “Enterprise Support Functions” below. objective, reliable, valued and timely assurance to the Citigroup Board of
Directors, its Audit Committee, Citi senior management and regulators over
Second Line of Defense: Independent Risk Management the effectiveness of governance, risk management and controls that mitigate
Independent risk management units are independent of front line units. current and evolving risks and enhance the control culture within Citi.
They are responsible for overseeing the risk-taking activities of the first Internal Audit reports to a chief audit executive (i.e., Citi’s Chief Auditor)
line of defense and challenging the first line of defense in the execution who has unrestricted access to the Board and the board of directors of certain
of their risk management responsibilities. They are also responsible for subsidiaries or their respective audit committees to facilitate the ability to
independently identifying, measuring, monitoring, controlling and reporting execute specific responsibilities pertaining to escalation of risks and issues.
aggregate risks and for setting standards for the management and oversight The Internal Audit function has designated Chief Auditors responsible for
of risk. Independent risk management is comprised of Independent Risk assessing the design and effectiveness of controls within the various business
Management (IRM) and Independent Compliance Risk Management units, functions, geographies and legal entities in which Citi operates.
(ICRM) and are led by chief risk executives (i.e., Chief Risk Officer (CRO)
and Chief Compliance Officer (CCO)) who have unrestricted access to
the Citigroup Board of Directors and its Risk Management Committee to
facilitate the ability to execute their specific responsibilities pertaining to
escalation to the Citigroup Board of Directors.

65
Enterprise Support Functions • Audit Committee: provides oversight of Citi’s financial reporting
Enterprise support functions engage in activities that support safety and and internal control risk, as well as Internal Audit and Citi’s external
soundness across Citi. These functions provide advisory services and/or independent accountants.
design, implement, maintain and oversee Company-wide programs that • Personnel and Compensation Committee: provides oversight of
support Citi in maintaining an effective control environment. incentive compensation plans and risk related to compensation.
Enterprise support functions are comprised of Human Resources,
• Ethics, Conduct and Culture Committee: provides oversight of Citi’s
International Franchise Management, Legal (including Citi Security and
Conduct Risk Management Program.
Investigative Services).
Enterprise support functions, units and activities are subject to the • Nomination, Governance and Public Affairs Committee: provides
relevant Company-wide independent oversight processes specific to the oversight of reputational issues, Environmental, Social and Governance
risk category that they generate (e.g., operational risk, compliance risk, (ESG) and sustainability matters, and legal and regulatory compliance
reputation risk). risks as they relate to corporate governance matters.
In addition to the above, the Board has established the following ad
Risk Governance
hoc committee:
Citi’s ERM Framework encompasses risk management processes to address
risks undertaken by Citi through identification, measurement, monitoring, • Transformation Oversight Committee: provides oversight of the
controlling and reporting of all risks. The ERM Framework integrates these actions of Citi’s management to develop and execute a transformation
processes with appropriate governance to complement Citi’s commitment to of Citi’s risk and control environment pursuant to the recent regulatory
maintaining strong and consistent risk management practices. consent orders (for additional information see “Citi’s Consent Order
Compliance” above).
Board Oversight
The Board is responsible for oversight of risk management and holds the The Executive Management Team has established five standing committees
Executive Management Team accountable for implementing the ERM that cover the primary risks to which Citi (i.e., Group) is exposed. These
Framework and meeting strategic objectives within Citi’s risk appetite. consist of:

Executive Management Team • Group Strategic Risk Committee (GSRC): provides governance oversight
The Board delegates authority to an Executive Management Team for of Citi’s management actions to adequately identify, monitor, report,
directing and overseeing day-to-day management of Citi. The Executive manage and escalate all material strategic risks facing Citi.
Management Team is led by the Citigroup CEO and provides oversight of • Citigroup Asset and Liability Committee (ALCO): responsible for
group activities, both directly and through authority delegated to committees governance over management’s Liquidity Risk and Market Risk
it has established to oversee the management of risk, to ensure continued (non-trading) management and for monitoring and influencing the
alignment with Citi’s strategy and risk appetite. balance sheet, investment securities and capital management activities
of Citigroup.
Board and Executive Management Committees
• Group Risk Management Committee (GRMC): provides governance
The Board executes its responsibilities either directly or through its oversight of Credit Risk and Market Risk (trading) management in the
committees. The Board has delegated authorities to the following Board Trading Book.
standing committees to help fulfill its oversight and risk management
responsibilities: • Group Business Risk and Control Committee (GBRCC): provides
governance oversight of Citi’s Compliance and Operational Risks.
• Risk Management Committee (RMC): assists the Board in fulfilling • Group Reputation Risk Committee (GRRC): provides governance
its responsibility with respect to (i) oversight of Citi’s risk management oversight for Reputation Risk management across Citi.
framework, including the significant policies and practices used in
managing credit, market, liquidity, strategic, operational, compliance, In addition to the Executive Management committees listed above, the Board
reputation and certain other risks, including those pertaining to capital may establish ad-hoc committees in response to regulatory feedback or to
management, and (ii) performance oversight of the Global Risk manage additional activities where deemed necessary.
Review—credit, capital and collateral review functions.

66
The figure below illustrates the reporting lines between the Board and Executive Management committees:

Citigroup Board
Nomination,
Risk Personnel and Ethics, Conduct
Board Committees Audit Governance and
Management Compensation and Culture
Public Affairs

Citigroup Asset Group Risk Group Business Group

Group Strategic
Group Executive and Liability Management Risk and Control Reputation Risk
Risk Committee
Management Committees Committee Committee Committee Committee
(GSRC)
(ALCO) (GRMC) (GBRCC) (GRRC)

CREDIT RISK To manage concentration of risk within credit risk, Citi has in place
a framework consisting of industry limits, an idiosyncratic framework
Overview consisting of single name concentrations for each business and across
Credit risk is the risk of loss resulting from the decline in credit quality Citigroup and a specialized framework consisting of product limits.
of a client, customer or counterparty (or downgrade risk) or the failure Credit exposures are generally reported in notional terms for accrual
of a borrower, counterparty, third party or issuer to honor its financial or loans, reflecting the value at which the loans as well as other off-balance
contractual obligations. Credit risk arises in many of Citigroup’s business sheet commitments are carried on the Consolidated Balance Sheet. Credit
activities, including: exposure arising from capital markets activities is generally expressed as the
current mark-to-market, net of margin, reflecting the net value owed to Citi
• consumer, commercial and corporate lending; by a given counterparty.
• capital markets derivative transactions; The credit risk associated with these credit exposures is a function of
• structured finance; and the idiosyncratic creditworthiness of the obligor, as well as the terms and
• securities financing transactions (repurchase and reverse repurchase conditions of the specific obligation. Citi assesses the credit risk associated
agreements, and securities loaned and borrowed). with its credit exposures on a regular basis through its Allowance for Credit
Losses (ACL) process (see “Significant Accounting Policies and Significant
Credit risk also arises from clearing and settlement activities, when Citi Estimates—Allowance for Credit Losses” below and Notes 1 and 15 to the
transfers an asset in advance of receiving its counter-value or advances funds Consolidated Financial Statements), as well as through regular stress testing
to settle a transaction on behalf of a client. Concentration risk, within credit at the company, business, geography and product levels. These stress-testing
risk, is the risk associated with having credit exposure concentrated within a processes typically estimate potential incremental credit costs that would
specific client, industry, region or other category. occur as a result of either downgrades in the credit quality or defaults of the
Credit risk is one of the most significant risks Citi faces as an institution. obligors or counterparties. For additional information on Citi’s credit risk
For additional information, see “Risk Factors—Credit Risk” above. As a management, see Note 14 to the Consolidated Financial Statements.
result, Citi has an established framework in place for managing credit risk
across all businesses that includes a defined risk appetite, credit limits and
credit policies. Citi’s credit risk management also includes processes and
policies with respect to problem recognition, including “watch lists,” portfolio
reviews, stress tests, updated risk ratings and classification triggers.
With respect to Citi’s clearing and settlement activities, intraday client
usage of clearing lines is monitored against limits, as well as against usage
patterns with settlement activity monitored daily and intraday for select
products. To the extent that a problem develops, Citi typically moves the
client to a secured (collateralized) operating model. Generally, Citi’s intraday
clearing and settlement lines are uncommitted and cancelable at any time.

67
CONSUMER CREDIT
Citi fulfills a broad spectrum of customers’ financial needs with activities
spanning retail banking, wealth management, credit card, personal loan,
mortgage and small business banking through North America GCB. During
2021, Citi also provided such activities in 18 countries in Latin America
GCB and Asia GCB (for information on Citi’s consumer market exits in
Latin America GCB and Asia GCB, see “Strategic Refresh—Market Exits
and Planned Revision to Reporting Structure” above). The retail banking
products include consumer mortgages, home equity, personal and small
business loans and lines of credit and similar related products building a
generally prime portfolio through well-defined lending parameters. Citi uses
its risk appetite framework to define its lending parameters.

Consumer Credit Portfolio

The following table shows Citi’s quarterly end-of-period consumer loans:(1)

In billions of dollars 4Q’20 1Q’21 2Q’21 3Q’21(2) 4Q’21(2)

Retail banking:
Mortgages $ 88.9 $ 86.7 $ 86.3 $ 79.8 $ 79.5
Personal, small business and other 40.1 39.1 39.0 37.0 36.1
Total retail banking $129.0 $125.8 $125.3 $116.8 $115.6
Cards:
Branded cards $106.7 $ 99.6 $102.9 $100.6 $105.7
Retail services 46.4 42.5 42.7 42.7 46.0
Total cards $153.1 $142.1 $145.6 $143.3 $151.7
Total GCB $282.1 $267.9 $270.9 $260.1 $267.3
GCB regional distribution:
North America 65% 64% 64% 67% 68%
Latin America 5 5 5 5 5
Asia (3) 30 31 31 28 27
Total GCB 100% 100% 100% 100% 100%
Corporate/Other (4) $ 6.7 $ 6.1 $ 5.0 $ 4.2 $ 3.9
Total consumer loans $288.8 $274.0 $275.9 $264.3 $271.2

(1) End-of-period loans include interest and fees on credit cards.

(2) As a result of Citi’s entry into agreements to sell its consumer banking businesses in Australia and the Philippines, the businesses were reclassified as held-for-sale and their assets and liabilities were included in
Other assets and Other liabilities, respectively, on Citi’s Consolidated Balance Sheet and excluded from loans and related credit measures, of GCB and Asia GCB beginning in the third quarter of 2021 for Australia and
the fourth quarter of 2021 for the Philippines. For additional information, see Note 2 to the Consolidated Financial Statements.
(3) Asia includes loans and leases in certain EMEA countries for all periods presented.
(4) Primarily consists of legacy assets, principally North America consumer mortgages.

For information on changes to Citi’s consumer loans, see “Liquidity

Risk—Loans” below.

68
Overall Consumer Credit Trends As shown in the chart above, the net credit loss rate in North America
GCB for the fourth quarter of 2021 decreased quarter-over-quarter and year-
Global Consumer Banking over-year, primarily reflecting the continued impact of high payment rates in
NCL cards, driven by government stimulus.
90+ DPD Year-over-year, the payment rates were also impacted by unemployment
benefits and consumer relief programs.
The 90+ days past due delinquency rate in North America GCB increased
2.68% 2.73%
2.33% 2.36%
modestly quarter-over-quarter, primarily due to seasonality in cards, while
the 90+ days past due delinquency rate decreased year-over-year, primarily
1.83% 1.87%
reflecting the continued impact of high payment rates in cards, driven by
1.42%
1.22% government stimulus.

0.93% 0.91% 0.89% 0.81% Latin America GCB

0.73% 0.66% 0.57% 0.57%
NCL
1Q’20 2Q’20 3Q’20 4Q’20 1Q’21 2Q’21 3Q’21 4Q’21
90+ DPD 10.65%

As shown in the chart above, GCB’s net credit loss rate decreased quarter- 7.43%
over-quarter and year-over-year for the fourth quarter of 2021, primarily 6.53% 6.67%
6.15%
reflecting the continued impact of government stimulus, unemployment 4.51% 5.26%
benefits and consumer relief programs in North America GCB, and a decline 3.97%
following the peak charge-offs in Asia GCB and Latin America GCB in
recent quarters. 2.49%
2.13% 2.35%
GCB’s 90+ days past due delinquency rate remained unchanged quarter- 1.54% 1.56% 1.84% 1.52% 1.38%
over-quarter. The 90+days past due delinquency rate decreased year-over- 1Q’20 2Q’20 3Q’20 4Q’20 1Q’21 2Q’21 3Q’21 4Q’21
year, primarily due to the continued impacts of government stimulus,
unemployment benefits and consumer relief programs in North America
GCB, as well as lower delinquencies in Asia GCB and Latin America GCB, Latin America GCB operates in Mexico through Citibanamex and
following the charge-off of peak delinquencies in recent quarters. provides credit cards, consumer mortgages and small business and personal
loans. Latin America GCB serves a more mass-market segment in Mexico
North America GCB and focuses on developing multiproduct relationships with customers.
NCL As shown in the chart above, the net credit loss rate in Latin America
90+ DPD GCB for the fourth quarter of 2021 decreased quarter-over-quarter and year-
3.22% over-year. The impact of charge-offs of delinquent loans in prior quarters
3.10%
resulted in lower delinquencies that led to lower net credit losses in the
2.63%
current quarter.
2.21%
1.93% 1.91%
The 90+ days past due delinquency rate decreased quarter-over-quarter
1.41%
and year-over-year. The impact of charge-offs of delinquent loans in prior
1.24% quarters and higher payment rates resulted in a lower 90+ days past due
delinquency rate in the current quarter.
1.07% 0.98% 0.89% 0.84%
0.75% 0.66% 0.58% 0.60%
Asia (1) GCB
1Q’20 2Q’20 3Q’20 4Q’20 1Q’21 2Q’21 3Q’21 4Q’21
NCL
90+ DPD

North America GCB provides mortgage, home equity, small business 1.29%
1.16%
and personal loans through Citi’s retail banking network and card products 0.99% 0.94%
through branded cards and retail services businesses. The retail bank is 0.87% 0.90%
0.79%
concentrated in six major metropolitan cities in the U.S. (for additional 0.67%
information on the U.S. retail bank, see “North America GCB” above).
As of December 31, 2021, approximately 74% of North America GCB 0.61%
0.49% 0.52% 0.53% 0.50%
consumer loans consisted of branded and retail services cards, which 0.46%
0.39%
0.33%
generally drives the overall credit performance of North America GCB (for
additional information on North America GCB’s cards portfolios, including 1Q’20 2Q’20 3Q’20 4Q’20 1Q’21 2Q’21 3Q’21 4Q’21
delinquency and net credit loss rates, see “Credit Card Trends” below).
(1) Asia includes GCB activities in certain EMEA countries for all periods presented.
69
 During 2021, Asia GCB operated in 17 countries and jurisdictions in North America GCB’s branded cards portfolio includes proprietary and
Asia and EMEA and provided credit cards, consumer mortgages and small co-branded cards.
business and personal loans. As shown in the chart above, the net credit loss rate in North America
As shown in the chart above, the fourth quarter of 2021 net credit loss branded cards for the fourth quarter of 2021 decreased quarter-over-quarter
rate in Asia GCB decreased quarter-over-quarter, driven by the charge-off of and year-over-year, primarily reflecting the continued impact of high
peak delinquencies in recent quarters. Year-over-year, the net credit loss rate payment rates, driven by government stimulus. Year-over-year, the payment
decreased, as elevated losses during the prior year returned to pre-pandemic rates were also impacted by unemployment benefits and consumer relief
levels. The decrease was also driven by the reclassification of approximately programs.
$10 billion of loans to held-for-sale as a result of Citi’s entry into agreements The 90+ days past due delinquency rate remained unchanged quarter-
to sell its consumer banking businesses in Australia and the Philippines (Asia over-quarter and decreased year-over-year, primarily reflecting the continued
HFS reclass). impact of high payment rates, driven by government stimulus. Year-over-
The 90+ days past due delinquency rate decreased quarter-over-quarter year, the payment rates were also impacted by unemployment benefits and
and year-over-year, driven by the charge-off of peak delinquencies in recent consumer relief programs.
quarters, as elevated losses returned to pre-pandemic levels, as well as the
impact of the Asia HFS reclass. North America Retail Services
The performance of Asia GCB’s portfolios continues to reflect the strong NCL
credit profiles in the region’s target customer segments. Regulatory changes 90+ DPD
in many markets in Asia over the past few years have also resulted in 5.53%
5.35%
improved credit quality.
4.51%
For additional information on cost of credit, loan delinquency and other
information for Citi’s consumer loan portfolios, see each respective business’s 3.00%
3.45%
3.09%
results of operations above and Notes 13 and 14 to the Consolidated Financial
2.23% 2.10%
Statements.
Credit Card Trends 1.96% 1.79%
1.25% 1.39% 1.39% 1.08% 0.99% 1.05%
Global Cards 1Q’20 2Q’20 3Q’20 4Q’20 1Q’21 2Q’21 3Q’21 4Q’21
NCL
90+ DPD

4.41% Retail services partners directly with more than 20 retailers and dealers to
4.10% offer private label and co-branded cards. Retail services’ target market focuses
3.82%
3.67%
on select industry segments such as home improvement, specialty retail,
2.91% 2.98% consumer electronics and fuel.
2.17%
1.77%
Retail services continually evaluates opportunities to add partners within
target industries that have strong loyalty, lending or payment programs and
growth potential.
1.37% 1.32% 1.22%
1.01% 1.11% 0.84% As shown in the chart above, the net credit loss rate in retail services for
0.70% 0.70%
1Q’20 2Q’20 3Q’20 4Q’20 1Q’21 2Q’21 3Q’21 4Q’21
the fourth quarter of 2021 decreased quarter-over-quarter and year-over-year,
primarily reflecting the continued impact of high payment rates, driven by
government stimulus. Year-over-year, the payment rates were also impacted
North America Branded Cards by unemployment benefits and consumer relief programs.
NCL The 90+ days past due delinquency rate increased quarter-over-quarter
90+ DPD due to seasonality, and decreased year-over-year, primarily reflecting the
3.80% continued impact of high payment rates, driven by government stimulus.
3.40% Year-over-year, the payment rates were also impacted by unemployment
3.17%
2.84% benefits and consumer relief programs.
2.43% 2.36%
1.73%
1.33%

1.01% 0.95%
0.71% 0.82% 0.75%
0.56% 0.44% 0.44%
1Q’20 2Q’20 3Q’20 4Q’20 1Q’21 2Q’21 3Q’21 4Q’21

70
Latin America Branded Cards North America Cards FICO Distribution
The following tables show the current FICO score distributions for Citi’s
NCL
90+ DPD North America cards portfolios based on end-of-period receivables. FICO
17.75% scores are updated monthly for a substantial share of the portfolio and
quarterly for the remaining portfolio.
14.09%
12.77%
Branded Cards
10.34% 10.57% 7.96% 9.04%

5.64% Dec. 31, Sept. 30, Dec. 31,

FICO distribution(1) 2021 2021 2020

4.85% > 760 49% 48% 46%

3.81% 4.02% 680–760 38 39 39
2.69% 2.47% 2.77%
1.88% 1.62% < 680 13 13 15
1Q’20 2Q’20 3Q’20 4Q’20 1Q’21 2Q’21 3Q’21 4Q’21
Total 100% 100% 100%

Latin America GCB issues proprietary and co-branded cards. Retail Services
As shown in the chart above, the fourth quarter of 2021 net credit loss rate
in Latin America branded cards decreased quarter-over-quarter and year- Dec. 31, Sept. 30, Dec. 31,
FICO distribution(1) 2021 2021 2020
over-year. The impact of charge-offs of delinquent loans in prior quarters
resulted in lower delinquencies that led to lower net credit losses in the > 760 28% 27% 27%
680–760 44 45 44
current quarter. < 680 28 28 29
The 90+ days past due delinquency rate decreased quarter-over-quarter
Total 100% 100% 100%
and year-over-year. The impact of charge-offs of delinquent loans in prior
quarters and higher payment rates resulted in a lower 90+ days past due (1) The FICO bands in the tables are consistent with general industry peer presentations.
delinquency rate.
The FICO distribution of both cards portfolios remained largely stable
Asia Branded Cards (1) compared to the prior quarter and improved compared to the prior year,
NCL demonstrating strong underlying credit quality and a benefit from the
90+ DPD impacts of government stimulus, unemployment benefits and customer relief
4.34% programs, as well as lower credit utilization. For additional information on
3.56% FICO scores, see Note 14 to the Consolidated Financial Statements.
2.76% 2.82% 2.80%
2.50%
2.29% 2.19%

1.74%
1.27% 1.44% 1.33%
1.18% 1.15% 1.07%
1.85%
1Q’20 2Q’20 3Q’20 4Q’20 1Q’21 2Q’21 3Q’21 4Q’21

(1) Asia includes loans and leases in certain EMEA countries for all periods presented.

As shown in the chart above, the net credit loss rate in Asia branded cards
for the fourth quarter of 2021 decreased quarter-over-quarter and year-over-
year, driven by the charge-off of peak delinquencies in recent quarters, as
elevated losses returned to pre-pandemic levels, as well as the impact of the
Asia HFS reclass.
The 90+ days past due delinquency rate decreased quarter-over-quarter
and year-over-year, driven by the charge-off of peak delinquencies in recent
quarters, as elevated losses returned to pre-pandemic levels, as well as the
Asia HFS reclass.

For additional information on cost of credit, delinquency and other

information for Citi’s cards portfolios, see each respective business’s results of
operations above and Note 14 to the Consolidated Financial Statements.

71
Additional Consumer Credit Details

Consumer Loan Delinquencies Amounts and Ratios

EOP loans(1) 90+ days past due(2) 30–89 days past due(2)
December 31, December 31, December 31,
In millions of dollars, except EOP loan amounts in billions 2021 2021 2020 2019 2021 2020 2019
Global Consumer Banking (3)(4)
Total $267.3 $ 1,521 $ 2,507 $ 2,737 $ 1,661 $ 2,517 $ 3,001
Ratio 0.57% 0.89% 0.91% 0.62% 0.89% 1.00%
Retail banking
Total $115.6 $ 462 $ 632 $ 438 $ 522 $ 860 $ 816
Ratio 0.40% 0.49% 0.35% 0.45% 0.67% 0.66%
North America 48.1 228 299 146 219 328 334
Ratio 0.49% 0.58% 0.29% 0.47% 0.63% 0.67%
Latin America 8.6 107 130 106 106 220 180
Ratio 1.24% 1.33% 0.91% 1.23% 2.24% 1.54%
Asia (5)(6) 58.9 127 203 186 197 312 302
Ratio 0.22% 0.31% 0.30% 0.33% 0.47% 0.48%
Cards
Total $151.7 $ 1,059 $ 1,875 $ 2,299 $ 1,139 $ 1,657 $ 2,185
Ratio 0.70% 1.22% 1.31% 0.75% 1.08% 1.25%
North America—branded 87.9 389 686 915 408 589 814
Ratio 0.44% 0.82% 0.95% 0.46% 0.70% 0.85%
North America—retail services 46.0 482 644 1,012 539 639 945
Ratio 1.05% 1.39% 1.91% 1.17% 1.38% 1.79%
Latin America 4.7 76 233 165 67 170 159
Ratio 1.62% 4.85% 2.75% 1.43% 3.54% 2.65%
Asia (5)(6) 13.1 112 312 207 125 259 267
Ratio 0.85% 1.74% 1.04% 0.95% 1.45% 1.34%
Corporate/Other—Consumer(7)
Total $ 3.9 $ 221 $ 313 $ 278 $ 88 $ 179 $ 295
Ratio 6.14% 5.13% 3.02% 2.44% 2.93% 3.21%
Total Citigroup $271.2 $ 1,742 $ 2,820 $ 3,015 $ 1,749 $ 2,696 $ 3,296
Ratio 0.65% 0.98% 0.98% 0.65% 0.94% 1.07%

(1) End-of-period (EOP) loans include interest and fees on credit cards.
(2) The ratios of 90+ days past due and 30–89 days past due are calculated based on EOP loans, net of unearned income.
(3) The 90+ days past due balances for North America—branded and North America—retail services are generally still accruing interest. Citigroup’s policy is generally to accrue interest on credit card loans until 180 days
past due, unless notification of bankruptcy filing has been received earlier.
(4) The 90+ days past due and 30–89 days past due and related ratios for North America GCB exclude loans guaranteed by U.S. government-sponsored agencies since the potential loss predominantly resides with the
U.S. government-sponsored agencies. The amounts excluded for loans 90+ days past due and (EOP loans) were $185 million ($1.1 billion), $171 million ($0.7 billion) and $135 million ($0.5 billion) at December 31,
2021, 2020 and 2019, respectively. The amounts excluded for loans 30–89 days past due (the 30–89 days past due EOP loans have the same adjustments as the 90+ days past due EOP loans) were $74 million,
$98 million and $72 million at December 31, 2021, 2020 and 2019, respectively.
(5) Asia includes delinquencies and loans in certain EMEA countries for all periods presented.
(6) During 2021, Citi’s Australia and the Philippines consumer banking businesses were reclassified as HFS, due to Citi’s entry into agreements to sell the businesses. Accordingly, Australia and the Philippines consumer
loans are recorded in Other assets on the Consolidated Balance Sheet, and hence the loans and related delinquencies and ratios are not included in this table. See Note 2 to the Consolidated Financial Statements for
additional information.
(7) The 90+ days past due and 30–89 days past due and related ratios exclude U.S. mortgage loans that are primarily related to U.S. mortgages guaranteed by U.S. government-sponsored agencies since the potential
loss predominantly resides with the U.S. agencies. The amounts excluded for 90+ days past due EOP loans were $138 million ($0.4 billion), $183 million ($0.5 billion) and $172 million ($0.4 billion) at December 31,
2021, 2020 and 2019, respectively. The amounts excluded for loans 30–89 days past due (the 30–89 days past due EOP loans have the same adjustments as the 90+ days past due EOP loans) were $35 million,
$73 million and $55 million at December 31, 2021, 2020 and 2019, respectively.

72
Consumer Loan Net Credit Losses and Ratios
Average
loans(1) Net credit losses(2)
In millions of dollars, except average loan amounts in billions 2021 2021 2020 2019
Global Consumer Banking
Total $266.3 $4,582 $6,646 $7,382
Ratio 1.72% 2.39% 2.60%
Retail banking
Total $122.3 $ 779 $ 805 $ 910
Ratio 0.64% 0.65% 0.76%
North America 50.0 109 132 161
Ratio 0.22% 0.25% 0.33%
Latin America 9.0 410 377 494
Ratio 4.56% 3.85% 4.30%
Asia (3)(4) 63.3 260 296 255
Ratio 0.41% 0.47% 0.43%
Cards
Total $144.0 $3,803 $5,841 $6,472
Ratio 2.64% 3.82% 3.94%
North America—branded 81.1 1,659 2,708 2,864
Ratio 2.05% 3.20% 3.19%
North America—retail services 43.1 1,169 2,150 2,558
Ratio 2.71% 4.62% 5.13%
Latin America 4.4 510 489 615
Ratio 11.59% 10.40% 10.79%
Asia (3)(4) 15.4 465 494 435
Ratio 3.02% 2.84% 2.29%
Corporate/Other—Consumer
Total $ 5.3 $ (82) $ (21) $ (6)
Ratio (1.55)% 0.25% 0.14%
Total Citigroup $271.6 $4,500 $6,625 $7,376
Ratio 1.66% 2.32% 2.49%

(1) Average loans include interest and fees on credit cards.

(2) The ratios of net credit losses are calculated based on average loans, net of unearned income.
(3) Asia includes NCLs and average loans in certain EMEA countries for all periods presented.
(4) As a result of Citi’s entry into agreements to sell its consumer banking businesses in Australia and the Philippines during 2021, these businesses were reclassified as HFS beginning in 2021. As a result of HFS
accounting treatment, approximately $6 million of net credit losses (NCLs) was recorded as a reduction in revenue (Other revenue) in 2021. Accordingly, these NCLs are not included in this table, as well as Loans HFS
that are recorded in Other assets on the Consolidated Balance Sheet. See Note 2 to the Consolidated Financial Statements for additional information.

73
Loan Maturities and Fixed/Variable Pricing of Consumer Loans
Loan Maturities
Greater Greater
Due than 1 year than 5 years Greater
within but within but within than
In millions of dollars at December 31, 2021 1 year 5 years 15 years 15 years Total
In North America offices
Residential first mortgages $ 15 $ 109 $2,573 $41,116 $ 43,813
Home equity loans 65 56 1,484 3,496 5,101
Credit cards 133,868 — — — 133,868
Personal, small business and other 1,092 1,678 237 151 3,158
Total $135,040 $1,843 $4,294 $44,763 $185,940

In offices outside North America

Residential mortgages $ 2,022 $ 651 $6,667 $25,261 $ 34,601
Credit cards 17,808 — — — 17,808
Personal, small business and other 23,323 8,180 1,124 260 32,887
Total $ 43,153 $8,831 $7,791 $25,521 $ 85,296

Fixed/Variable Pricing
Greater Greater
Due than 1 year than 5 years Greater
within but within but within than
In millions of dollars at December 31, 2021 1 year 5 years 15 years 15 years Total
Loans at fixed interest rates
Residential first mortgages $ 225 $ 183 $1,990 $31,581 $ 33,979
Home equity loans 65 51 223 336 675
Credit cards 42,117 — — — 42,117
Personal, small business and other 11,883 6,407 37 83 18,410
Total $ 54,290 $6,641 $2,250 $32,000 $ 95,181

Loans at floating or adjustable interest rates

Residential first mortgages $ 1,812 $ 577 $7,250 $34,796 $ 44,435
Home equity loans — 5 1,261 3,160 4,426
Credit cards 109,559 — — — 109,559
Personal, small business and other 12,532 3,451 1,324 328 17,635
Total $123,903 $4,033 $9,835 $38,284 $176,055

74
CORPORATE CREDIT
Consistent with its overall strategy, Citi’s corporate clients are typically
corporations that value the depth and breadth of Citi’s global network. Citi
aims to establish relationships with these clients that, consistent with client
needs, encompass multiple products, including cash management and trade
services, foreign exchange, lending, capital markets and M&A advisory.
During 2021, Citi’s corporate credit exposures also included exposures in the
private bank, excluding certain loans managed on a delinquency basis. For
information on Citi’s planned revision to its reporting structure effective for
the first quarter of 2022, including the reporting of the private bank as part
of a new reporting segment, Personal Banking and Wealth Management,
see “Strategic Refresh—Market Exits and Planned Revision to Reporting
Structure” above.

Corporate Credit Portfolio

The following table details Citi’s corporate credit portfolio within ICG
(excluding certain loans in the private bank, which are managed on a
delinquency basis, as well as loans carried at fair value and held-for-sale),
and before consideration of collateral or hedges, by remaining tenor for
the periods indicated:

December 31, 2021 September 30, 2021 December 31, 2020

Greater Greater Greater
Due than 1 year Greater Due than 1 year Greater Due than 1 year Greater
within but within than Total within but within than Total within but within than Total
In billions of dollars 1 year 5 years 5 years exposure 1 year 5 years 5 years exposure 1 year 5 years 5 years exposure
Direct outstandings (on-balance sheet)(1) $187  $ 136  $ 21  $ 344  $192  $134  $ 21  $ 347  $175  $138  $ 25  $338 
Unfunded lending commitments (off-balance sheet)(2) 159  278  13  450  164  286  11  461  158  272  11  441 
Total exposure $346  $ 414  $ 34  $ 794  $356  $420  $ 32  $ 808  $333  $410  $ 36  $779 

(1) Includes drawn loans, overdrafts, bankers’ acceptances and leases.

(2) Includes unused commitments to lend, letters of credit and financial guarantees.

Portfolio Mix—Geography and Counterparty The maintenance of accurate and consistent risk ratings across the
Citi’s corporate credit portfolio is diverse across geography and counterparty. corporate credit portfolio facilitates the comparison of credit exposure across
The following table shows the percentage of this portfolio by region all lines of business, geographic regions and products. Counterparty risk
(excluding the delinquency-managed private bank portfolio) based on Citi’s ratings reflect an estimated probability of default for a counterparty and
internal management geography: are derived by leveraging validated statistical models, scorecard models and
external agency ratings (under defined circumstances), in combination
December 31, September 30, December 31, with consideration of factors specific to the obligor or market, such as
2021 2021 2020 management experience, competitive position, regulatory environment and
North America 57 % 57 % 56 % commodity prices. Facility risk ratings are assigned that reflect the probability
EMEA 24  25  25  of default of the obligor and factors that affect the loss given default of the
Asia 13  13  13 
Latin America 6  5  6
facility, such as support or collateral. Internal obligor ratings that generally
correspond to BBB and above are considered investment grade, while those
Total 100 % 100 % 100 %
below are considered non-investment grade.

75
 The following table presents the corporate credit portfolio (excluding Portfolio Mix—Industry
the delinquency-managed private bank portfolio) by facility risk rating as a Citi’s corporate credit portfolio is diversified by industry. The following table
percentage of the total corporate credit portfolio: details the allocation of Citi’s total corporate credit portfolio by industry
(excluding the delinquency-managed private bank portfolio):
Total exposure
December 31, September 30, December 31, Total exposure
2021 2021 2020 December 31, September 30, December 31,
AAA/AA/A 51 % 49 % 49 % 2021 2021 2020
BBB 32  32  31  Transportation and industrials 18 % 19 % 19 %
BB/B 15  16  17  Private bank 14  14  14 
CCC or below 2  3  3  Consumer retail 10  10  11 
Total 100 % 100 % 100 % Technology, media
and telecom 11  10  10 
Note: Total exposure includes direct outstandings and unfunded lending commitments. Real estate 9  9 8
Power, chemicals,
In addition to the obligor and facility risk ratings assigned to all metals and mining 8  8  8 
exposures, Citi may classify exposures in the corporate credit portfolio. These Banks and finance companies 7  7  7 
Energy and commodities 6  6  6
classifications are consistent with Citi’s interpretation of the U.S. banking
Health 4  5 5
regulators’ definition of criticized exposures, which may categorize exposures Public sector 3  3  3 
as special mention, substandard, doubtful or loss. Insurance 4  3  3 
Risk ratings and classifications are reviewed regularly, and adjusted Asset managers and funds 3  3  3 
Financial markets infrastructure 2  2  2 
as appropriate. The credit review process incorporates quantitative and Securities firms — —  — 
qualitative factors, including financial and non-financial disclosures or Other industries 1  1  1 
metrics, idiosyncratic events or changes to the competitive, regulatory or
Total 100 % 100 % 100 %
macroeconomic environment. This includes but is not limited to exposures
in those sectors significantly impacted by the pandemic (including consumer
retail, commercial real estate and transportation).
Citi believes the corporate credit portfolio to be appropriately rated and
classified as of December 31, 2021. Since the onset of the pandemic, Citi
has taken action to adjust internal ratings and classifications of exposures
as both the macroeconomic environment and obligor-specific factors have
changed, particularly where additional stress has been seen.
As obligor risk ratings are downgraded, the probability of default
increases. Downgrades of obligor risk ratings tend to result in a higher
provision for credit losses. In addition, downgrades may result in the
purchase of additional credit derivatives or other risk mitigants to hedge the
incremental credit risk, or may result in Citi’s seeking to reduce exposure
to an obligor or an industry sector. Citi will continue to review exposures
to ensure that the appropriate probability of default is incorporated into all
risk assessments.
For additional information on Citi’s corporate credit portfolio, see Note 14
to the Consolidated Financial Statements.

76
The following table details Citi’s corporate credit portfolio by industry as of December 31, 2021:

Non-investment grade Selected metrics

30 days or
Total Criticized more past Net Credit
credit Investment Non- Criticized non- due and credit losses derivative
In millions of dollars exposure Funded(1) Unfunded(1) grade criticized performing performing(2) accruing(3) (recoveries)(4) hedges(5)
Transportation and industrials $ 143,444 $ 51,502 $ 91,942 $110,047 $ 19,051 $ 13,196 $1,150 $ 384  $127  $ (8,791)
Autos(6) 48,210 18,662 29,548 39,824 5,365 2,906 115  49  2  (3,228)
Transportation 26,896 12,085 14,811 19,233 2,344 4,447 872 105  104  (1,334)
Industrials 68,338 20,755  47,583 50,990 11,342 5,843 163  230  21  (4,229)
Private bank 114,018 79,684 34,334 110,684 2,060 1,190 84  793  6  (1,080)
Consumer retail 78,995 32,894 46,101 60,687 13,590 4,311 407  224  100  (5,115)
Technology, media and telecom 84,334 28,542 55,792 64,677 15,873 3,587 197 156 11  (6,875)
Real estate 69,808 46,220 23,588 58,089 6,761 4,923 35  116  50  (798)
Power, chemicals,
metals and mining 65,641  20,224  45,417  53,576  10,708  1,241  116  292  22  (5,808)
Power 26,199  5,610  20,589  22,860  2,832  420  87  100  17  (3,032)
Chemicals 25,550  8,525  17,025  20,789  4,224  528 9  88  6  (2,141)
Metals and mining 13,892  6,089  7,803  9,927  3,652  293 20  104  (1) (635)
Banks and finance companies 58,251 36,803 21,448 49,466 4,892 3,890 3  150  (5) (680)
Energy and commodities(7) 48,973 13,485 35,488 38,972 7,517 2,220 264 224  78  (3,679)
Health 33,393 8,826 24,567 27,599 4,702 942 150  95  — (2,465)
Public sector 23,842 12,464 11,378 21,035 1,527 1,275 5  37  (3) (1,282)
Insurance 28,495 3,163 25,332 27,447 987  61  —  2  1  (2,711)
Asset managers and funds 22,269 6,649 15,620 20,871 1,019  377  2  12  — (113)
Financial markets infrastructure 14,342 109  14,233 14,323 18  —  1  —  —  (22)
Securities firms 1,472 613  859  605  816  51  —  4  —  (5)
Other industries 6,590 2,802  3,788 4,146  1,892  490 62  —  6  (169)
Total $ 793,867  $343,980  $ 449,887  $662,224  $ 91,413  $ 37,754  $2,476  $2,489  $393  $(39,593)

(1) Excludes $46.5 billion and $1.7 billion of funded and unfunded exposure at December 31, 2021, respectively, primarily related to the delinquency-managed private bank portfolio. Funded balances also excludes loans
carried at fair value of $6.1 billion at December 31, 2021.
(2) Includes non-accrual loan exposures and criticized unfunded exposures.
(3) Excludes $36 million of past due loans primarily related to the delinquency-managed private bank portfolio.
(4) Net credit losses (recoveries) are for the year ended December 31, 2021 and exclude delinquency-managed private bank net credit losses of $2 million.
(5) Represents the amount of purchased credit protection in the form of derivatives to economically hedge funded and unfunded exposures. Of the $39.6 billion of purchased credit protection, $36.0 billion represents
the total notional amount of purchased credit derivatives on individual reference entities. The remaining $3.6 billion represents the first loss tranche of portfolios of purchased credit derivatives with a total notional of
$28.4 billion, where the protection seller absorbs the first loss on the referenced loan portfolios.
(6) Autos total credit exposure includes securitization financing facilities secured by auto loans and leases, extended mainly to the finance company subsidiaries of global auto manufacturers, bank subsidiaries and
independent auto finance companies, of approximately $17.9 billion ($6.5 billion in funded, with more than 99% rated investment grade) as of December 31, 2021.
(7) In addition to this exposure, Citi has energy-related exposure within the public sector (e.g., energy-related state-owned entities) and the transportation and industrials sector (e.g., off-shore drilling entities) included in
the table above. As of December 31, 2021, Citi’s total exposure to these energy-related entities was approximately $5.1 billion, of which approximately $2.6 billion consisted of direct outstanding funded loans.

77
The following table details Citi’s corporate credit portfolio by industry as of December 31, 2020:

Non-investment grade Selected metrics

30 days or
Criticized more past Net Credit
Total credit Investment Non- Criticized non- due and credit losses derivative
In millions of dollars exposure Funded(1) Unfunded(1) grade criticized performing performing(2) accruing(3) (recoveries)(4) hedges(5)
Transportation and industrials $ 145,449 $ 58,353 $ 87,096 $104,311 $ 17,452 $ 21,887 $1,798 $ 136 $239 $ (8,110)
Autos(6) 52,150 23,586 28,564 41,334 4,374 6,167 275 8 45 (3,220)
Transportation 27,693 14,107 13,586 16,410 2,993 6,872 1,417 17 144 (1,166)
Industrials 65,606 20,660 44,946 46,566 10,085 8,848 106 111 50 (3,724)
Private bank(1) 109,397 75,693 33,705 104,244 2,395 2,510 248 963 78 (1,080)
Consumer retail 81,941 34,621 47,320 60,683 11,524 9,418 316 146 64 (5,493)
Technology, media and telecom 81,598 29,821 51,777 60,236 15,924 5,214 223 107 74 (7,237)
Real estate 64,817 42,711 22,106 53,839 5,342 5,453 185 334 18 (642)
Power, chemicals,
metals and mining 63,273 20,156 43,117 47,534 11,367 4,181 192 59 70 (5,341)
Power 26,555 6,018 20,537 22,405 3,311 685 154 14 57 (2,637)
Chemicals 22,227 7,839 14,387 16,535 3,804 1,882 5 32 8 (2,102)
Metals and mining 14,492 6,299 8,193 8,593 4,251 1,614 34 13 5 (602)
Banks and finance companies 52,639 29,570 23,069 43,546 4,648 4,387 59 27 79 (765)
Energy and commodities(7) 48,447 14,009 34,438 33,678 7,226 6,546 996 70 285 (4,199)
Health 35,421 8,575 26,846 29,081 4,354 1,749 238 17 17 (1,964)
Public sector 26,705 13,416 13,289 22,098 1,887 2,704 16 45 9 (1,089)
Insurance 26,576 1,925 24,651 25,864 575 136 — 27 1 (2,682)
Asset managers and funds 19,745 4,491 15,254 18,528 1,013 191 13 41 (1) (84)
Financial markets infrastructure 12,610 229 12,382 12,590 20 — — — — (9)
Securities firms 976 430 547 573 298 97 9 — — (6)
Other industries 9,009 4,247 4,762 4,980 2,404 1,442 182 10 43 (138)
Total $ 778,603 $338,246 $ 440,357 $621,784 $ 86,427 $ 65,914 $4,477 $1,982 $976 $ (38,839)

(1) Excludes $42.0 billion and $4.4 billion of funded and unfunded exposure at December 31, 2020, respectively, primarily related to the delinquency-managed private bank portfolio. Funded balances also excludes loans
carried at fair value of $6.8 billion at December 31, 2020.
(2) Includes non-accrual loan exposures and criticized unfunded exposures.
(3) Excludes $162 million of past due loans primarily related to the delinquency-managed private bank portfolio.
(4) Net credit losses (recoveries) are for the year ended December 31, 2020 and exclude delinquency-managed private bank credit losses of $10 million.
(5) Represents the amount of purchased credit protection in the form of derivatives to economically hedge funded and unfunded exposures. Of the $38.8 billion of purchased credit protection, $36.8 billion represents
the total notional amount of purchased credit derivatives on individual reference entities. The remaining $2.0 billion represents the first loss tranche of portfolios of purchased credit derivatives with a total notional of
$16.1 billion, where the protection seller absorbs the first loss on the referenced loan portfolios.
(6) Autos total credit exposure includes securitization financing facilities secured by auto loans and leases, extended mainly to the finance company subsidiaries of global auto manufacturers, bank subsidiaries and
independent auto finance companies, of approximately $20.2 billion ($10.3 billion in funded, with more than 99% rated investment grade) at December 31, 2020.
(7) In addition to this exposure, Citi has energy-related exposure within the public sector (e.g., energy-related state-owned entities) and the transportation and industrials sector (e.g., off-shore drilling entities) included in
the table above. As of December 31, 2020, Citi’s total exposure to these energy-related entities was approximately $7.0 billion, of which approximately $3.8 billion consisted of direct outstanding funded loans.

78
Exposure to Commercial Real Estate Credit Risk Mitigation
As of December 31, 2021, ICG’s total corporate credit exposure to commercial As part of its overall risk management activities, Citi uses credit derivatives
real estate (CRE) was $66 billion, with $44 billion consisting of direct and other risk mitigants to hedge portions of the credit risk in its corporate
outstanding funded loans (mainly included in the real estate and private credit portfolio, in addition to outright asset sales. Citi may enter into partial-
bank categories in the above table), or 7% of Citi’s total outstanding term hedges as well as full-term hedges. In advance of the expiration of
loans. In addition, as of December 31, 2021, more than 70% of ICG’s total partial-term hedges, Citi will determine, among other factors, the economic
corporate CRE exposure was to borrowers in the U.S. Also as of December 31, feasibility of hedging the remaining life of the instrument. The results of the
2021, approximately 77% of ICG’s total corporate CRE exposure was rated mark-to-market and any realized gains or losses on credit derivatives are
investment grade. reflected primarily in Principal transactions in the Consolidated Statement
As of December 31, 2021, the ACLL was 0.9% of funded CRE exposure, of Income.
including 2.4% of funded non-investment-grade exposure. At December 31, 2021, September 30, 2021 and December 31, 2020, ICG
(excluding the delinquency-managed private bank portfolio) had economic
Of the total CRE exposure:
hedges on the corporate credit portfolio of $39.6 billion, $38.1 billion
• $20 billion ($12 billion of direct outstanding funded loans) relates to and $38.8 billion, respectively. Citi’s expected credit loss model used in
Community Reinvestment Act-related lending provided pursuant to Citi’s the calculation of its ACL does not include the favorable impact of credit
regulatory requirements to meet the credit needs of borrowers in low and derivatives and other mitigants that are marked to market. In addition,
moderate income neighborhoods. the reported amounts of direct outstandings and unfunded lending
• $20 billion ($16 billion of direct outstanding funded loans) relates to commitments in the tables above do not reflect the impact of these hedging
exposure secured by mortgages on underlying properties or in well-rated transactions. The credit protection was economically hedging underlying ICG
securitization exposures. (excluding the delinquency-managed private bank portfolio) corporate credit
• $15 billion ($5 billion of direct outstanding funded loans) relates to portfolio exposures with the following risk rating distribution:
unsecured loans to large REITs, with nearly 74% of the exposure rated Rating of Hedged Exposure
investment grade.
• $11 billion ($11 billion of direct outstanding funded loans) relates to CRE December 31, September 30, December 31,
2021 2021 2020
exposure in the private bank, of which 100% is secured by mortgages.
In addition, 48% of the exposure is also full recourse to the client. As of AAA/AA/A 35% 32% 30%
BBB 49 47 48
December 31, 2021, 82% of the exposure was rated investment grade. BB/B 13 17 19
CCC or below 3 4 3
Total 100% 100% 100%

79
Loan Maturities and Fixed/Variable Pricing of Corporate Loans
Over Over
Due 1 year 5 years
within but within but within Over
In millions of dollars at December 31, 2021 1 year 5 years 15 years 15 years Total
Corporate loans
In North America offices(1)
Commercial and industrial loans $ 25,694 $ 24,878 $ 973 $ 454 $ 51,999
Financial institutions 50,299 16,534 91 12 66,936
Mortgage and real estate(2) 12,385 5,948 5,460 39,564 63,357
Installment, revolving credit and other 13,090 13,454 2,573 26 29,143
Lease financing 95 230 88 — 413
Total $101,563 $ 61,044 $ 9,185 $ 40,056 $211,848
In offices outside the North America (1)

Commercial and industrial loans $ 75,502 $ 22,905 $ 4,650 $ 110 $103,167

Financial institutions 26,672 5,147 92 292 32,203
Mortgage and real estate(2) 4,359 4,541 912 600 10,412
Installment, revolving credit and other 25,518 7,440 455 1,023 34,436
Governments and official institutions 792 2,183 843 605 4,423
Lease financing 1 23 18 — 42
Total $132,844 $ 42,239 $ 6,970 $ 2,630 $184,683
Corporate loans, net of unearned income (3)
$234,407 $103,283 $ 16,155 $ 42,686 $396,531
Loans at fixed interest rates (4)

Commercial and industrial loans $ 6,003 $ 752 $ 96

Financial institutions 4,982 26 12
Mortgage and real estate(2) 1,506 4,557 17,150
Installment, revolving credit and other 4,481 856 92
Lease financing 240 88 —
Total $ 17,212 $ 6,279 $ 17,350
Loans at floating or adjustable interest rates (4)

Commercial and industrial loans $ 41,780 $ 4,871 $ 468

Financial institutions 16,699 157 292
Mortgage and real estate(2) 8,983 1,815 23,015
Installment, revolving credit and other 18,597 3,015 1,561
Lease financing 12 18 —
Total $ 86,071 $ 9,876 $ 25,336
Total fixed/variable pricing of corporate loans with maturities due after one year, net of
unearned income(3) $103,283 $ 16,155 $ 42,686

(1) North America includes the U.S., Canada and Puerto Rico. Mexico is included in offices outside North America. The classification between offices in North America and outside North America is based on the domicile of
the booking unit. The difference between the domicile of the booking unit and the domicile of the managing unit is not material.
(2) Loans secured primarily by real estate.
(3) Corporate loans are net of unearned income of ($799) million. Unearned income on corporate loans primarily represents interest received in advance, but not yet earned, on loans originated on a discounted basis.
(4) Based on contractual terms. Repricing characteristics may effectively be modified from time to time using derivative contracts. See Note 22 to the Consolidated Financial Statements.

80
ADDITIONAL CONSUMER AND CORPORATE CREDIT DETAILS
Loans Outstanding

December 31,
In millions of dollars 2021 2020 2019 2018 2017
Consumer loans
In North America offices(1)
Residential first mortgages(2) $ 43,813 $ 47,778 $ 47,008 $ 47,412 $ 49,375
Home equity loans(2) 5,101 7,128 9,223 11,543 14,827
Credit cards 133,868 130,385 149,163 144,542 139,718
Personal, small business and other 3,158 4,509 3,699 4,046 4,140
Total $185,940 $189,800 $209,093 $207,543 $208,060
In offices outside North America(1)
Residential first mortgages(2) $ 34,601 $ 39,969 $ 38,024 $ 36,388 $ 37,870
Credit cards 17,808 22,692 25,909 24,951 25,727
Personal, small business and other 32,887 36,378 36,522 33,478 34,157
Total $ 85,296 $ 99,039 $100,455 $ 94,817 $ 97,754
Consumer loans, net of unearned income (3)
$271,236 $288,839 $309,548 $302,360 $305,814
Corporate loans
In North America offices(1)
Commercial and industrial $ 51,999 $ 57,731 $ 55,929 $ 60,861 $ 60,219
Financial institutions 66,936 55,809 53,922 48,447 39,128
Mortgage and real estate(2) 63,357 60,675 53,371 50,124 44,683
Installment and other 29,143 26,744 31,238 32,425 31,932
Lease financing 413 673 1,290 1,429 1,470
Total $211,848 $201,632 $195,750 $193,286 $177,432
In offices outside North America (1)

Commercial and industrial $103,167 $104,072 $112,668 $114,029 $113,178

Financial institutions 32,203 32,334 40,211 36,837 35,273
Mortgage and real estate(2) 10,412 11,371 9,780 7,376 7,309
Installment and other 34,436 33,759 27,303 25,685 22,638
Lease financing 42 65 95 103 190
Governments and official institutions 4,423 3,811 4,128 4,520 5,200
Total $184,683 $185,412 $194,185 $188,550 $183,788
Corporate loans, net of unearned income(4) $396,531 $387,044 $389,935 $381,836 $361,220
Total loans—net of unearned income $667,767 $675,883 $699,483 $684,196 $667,034
Allowance for credit losses on loans (ACLL) (16,455) (24,956) (12,783) (12,315) (12,355)
Total loans—net of unearned income and ACLL $651,312 $650,927 $686,700 $671,881 $654,679
ACLL as a percentage of total loans—net of unearned income (5)
2.49% 3.73% 1.84% 1.81% 1.86%
ACLL for consumer loan losses as a percentage of total consumer loans—
net of unearned income(5) 5.02% 6.77% 3.20% 3.14% 3.08%
ACLL for corporate loan losses as a percentage of total corporate loans—
net of unearned income(5) 0.73% 1.42% 0.75% 0.74% 0.82%

(1) North America includes the U.S., Canada and Puerto Rico. Mexico is included in offices outside North America. The classification of corporate loans between offices in North America and outside North America is based
on the domicile of the booking unit. The difference between the domicile of the booking unit and the domicile of the managing unit is not material.
(2) Loans secured primarily by real estate.
(3) Consumer loans are net of unearned income of $659 million, $749 million, $783 million, $742 million and $768 million at December 31, 2021, 2020, 2019, 2018 and 2017, respectively. Unearned income on
consumer loans primarily represents unamortized origination fees and costs, premiums and discounts.
(4) Corporate loans include private bank loans and are net of unearned income of $(799) million, $(844) million, $(814) million, $(855) million and $(794) million at December 31, 2021, 2020, 2019, 2018 and 2017,
respectively. Unearned income on corporate loans primarily represents interest received in advance, but not yet earned, on loans originated on a discounted basis.
(5) Because loans carried at fair value do not have an ACLL, they are excluded from the ACLL ratio calculation.

81
Details of Credit Loss Experience

In millions of dollars 2021 2020 2019 2018 2017

Allowance for credit losses on loans (ACLL) at beginning of year $24,956 $12,783 $12,315 $12,355 $12,060
Adjustments to opening balance:
Financial instruments—credit losses (CECL)(1) — 4,201 — — —
Variable post-charge-off third-party collection costs(2) — (443) — — —
Adjusted ACLL at beginning of year $24,956 $16,541 $12,315 $12,355 $12,060
Provision for credit losses on loans (PCLL)
Consumer(2) (966) 11,765 7,751 7,258 7,329
Corporate (2,137) 4,157 467 96 174
Total $ (3,103) $15,922 $ 8,218 $ 7,354 $ 7,503
Gross credit losses on loans
Consumer
In U.S. offices $ 4,055 $ 6,047 $ 6,538 $ 5,971 $ 5,664
In offices outside the U.S. 2,143 2,144 2,316 2,351 2,377
Corporate
Commercial and industrial, and other
In U.S. offices 239 562 265 121 223
In offices outside the U.S. 256 409 196 208 401
Loans to financial institutions
In U.S. offices 1 14 — 3 3
In offices outside the U.S. 1 12 3 7 1
Mortgage and real estate
In U.S. offices 20 71 23 2 2
In offices outside the U.S. 5 4 — 2 2
Total $ 6,720 $ 9,263 $ 9,341 $ 8,665 $ 8,673
Credit recoveries on loans (2)

Consumer
In U.S. offices $ 1,204 $ 1,106 $ 975 $ 912 $ 892
In offices outside the U.S. 494 460 503 502 552
Corporate
Commercial and industrial, and other
In U.S. offices 67 43 28 47 31
In offices outside the U.S. 56 28 59 78 117
Loans to financial institutions
In U.S. offices 3 — — — 1
In offices outside the U.S. 1 14 — 3 1
Mortgage and real estate
In U.S. offices — — 8 6 2
In offices outside the U.S. — 1 — 4 1
Total $ 1,825 $ 1,652 $ 1,573 $ 1,552 $ 1,597
Net credit losses on loans (NCLs)
In U.S. offices $ 3,041 $ 5,545 $ 5,815 $ 5,132 $ 4,966
In offices outside the U.S. 1,854 2,066 1,953 1,981 2,110
Total $ 4,895 $ 7,611 $ 7,768 $ 7,113 $ 7,076
Other—net (3)(4)(5)(6)(7)(8)
$ (503) $ 104 $ 18 $ (281) $ (132)
Allowance for credit losses on loans (ACLL) at end of year $16,455 $24,956 $12,783 $12,315 $12,355
ACLL as a percentage of EOP loans(9) 2.49% 3.73% 1.84% 1.81% 1.86%
Allowance for credit losses on unfunded lending commitments (ACLUC)(10)(11) $ 1,871 $ 2,655 $ 1,456 $ 1,367 $ 1,258

Table and notes continue on the next page.

82
Total ACLL and ACLUC $18,326 $27,611 $14,239 $13,682 $13,613
Net consumer credit losses on loans $ 4,500 $ 6,625 $ 7,376 $ 6,908 $ 6,597
As a percentage of average consumer loans 1.66% 2.32% 2.49% 2.33% 2.22%
Net corporate credit losses on loans $ 395 $ 986 $ 392 $ 205 $ 479
As a percentage of average corporate loans 0.10% 0.25% 0.10% 0.05% 0.14%
ACLL by type at end of year(12)
Consumer $13,616 $19,554 $ 9,897 $ 9,504 $ 9,412
Corporate 2,839 5,402 2,886 2,811 2,943
Total $16,455 $24,956 $12,783 $12,315 $12,355

(1) On January 1, 2020, Citi adopted Accounting Standards Codification (ASC) 326, Financial Instruments—Credit Losses (CECL). The ASC introduces a new credit loss methodology requiring earlier recognition of credit
losses while also providing additional disclosure about credit risk. On January 1, 2020, Citi recorded a $4.1 billion, or an approximate 29%, pretax increase in the Allowance for credit losses, along with a $3.1 billion
after-tax decrease in Retained earnings and a deferred tax asset increase of $1.0 billion. This transition impact reflects (i) a $4.9 billion build to the consumer ACL due to longer estimated tenors than under the
incurred loss methodology under prior U.S. GAAP, net of recoveries; and (ii) a $0.8 billion decrease to the corporate ACL due to shorter remaining tenors, incorporation of recoveries and use of more specific historical
loss data based on an increase in portfolio segmentation across industries and geographies. See Note 1 to the Consolidated Financial Statements for further discussion on the impact of Citi’s adoption of CECL.
(2) Citi had a change in accounting related to its variable post-charge-off third-party collection costs that was recorded as an adjustment to its January 1, 2020 opening allowance for credit losses on loans of $443
million. See Note 1 to the Consolidated Financial Statements.
(3) Includes all adjustments to the allowance for credit losses, such as changes in the allowance from acquisitions, dispositions, securitizations, FX translation, purchase accounting adjustments, etc.
(4) 2021 includes an approximate $280 million reclass related to Citi’s agreement to sell its consumer banking business in Australia and an approximate $90 million reclass related to Citi’s agreement to sell its consumer
banking business in the Philippines. Those ACLL were reclassified to Other assets during 2021. 2021 also includes a decrease of approximately $134 million related to FX translation.
(5) 2020 includes reductions of approximately $4 million related to the transfer to HFS of various real estate loan portfolios. In addition, 2020 includes an increase of approximately $97 million related to FX translation.
(6) 2019 includes reductions of approximately $42 million related to the sale or transfer to HFS of various loan portfolios. In addition, 2019 includes a reduction of approximately $60 million related to FX translation.
(7) 2018 includes reductions of approximately $201 million related to the sale or transfer to HFS of various loan portfolios, which include approximately $106 million related to the transfer of various real estate loan
portfolios to HFS. In addition, 2017 includes an increase of approximately $115 million related to FX translation.
(8) 2017 includes reductions of approximately $261 million related to the sale or transfer to HFS of various loan portfolios, which include approximately $106 million related to the transfer of various real estate loan
portfolios to HFS. In addition, 2017 includes an increase of approximately $115 million related to FX translation.
(9) December 31, 2021, 2020, 2019, 2018 and 2017 exclude $6.1 billion, $6.9 billion, $4.1 billion, $3.2 billion and $4.4 billion, respectively, of loans which are carried at fair value.
(10) 2020 corporate ACLUC includes a non-provision transfer of $68 million, representing reserves on performance guarantees. The reserves on these contracts were reclassified out of the ACL on unfunded lending
commitments and into other liabilities.
(11) Represents additional credit reserves recorded as Other liabilities on the Consolidated Balance Sheet.
(12) Beginning in 2020, under CECL, the ACLL represents management’s estimate of expected credit losses in the portfolio and troubled debt restructurings. See “Significant Accounting Policies and Significant Estimates”
and Note 1 to the Consolidated Financial Statements below. Attribution of the ACLL is made for analytical purposes only and the entire ACLL is available to absorb credit losses in the overall portfolio. Prior to 2020,
the ACLL represented management’s estimate of probable losses inherent in the portfolio, as well as probable losses related to large individually evaluated impaired loans and TDRs. See “Superseded Accounting
Principles” in Note 1 to the Consolidated Financial Statements.

83
Allowance for Credit Losses on Loans (ACLL)
The following tables detail information on Citi’s ACLL, loans and coverage ratios:

December 31, 2021

In billions of dollars ACLL EOP loans, net of unearned income ACLL as a percentage of EOP loans(1)
Consumer
North America cards(2) $10.8 $ 133.8 8.1%
North America mortgages(3) 0.2 48.9 0.4
North America other 0.3 3.2 9.4
International cards 1.2 17.8 6.7
International other(4) 1.2 67.5 1.8
Total $13.7 $ 271.2 5.1%
Corporate
Commercial and industrial $ 1.5 $ 151.1 1.0%
Financial institutions 0.3 98.9 0.3
Mortgage and real estate 0.7 73.8 0.9
Installment and other 0.3 66.7 0.4
Total $ 2.8 $ 390.5 0.7%
Loans at fair value (1)
N/A $ 6.1 N/A
Total Citigroup $16.5 $ 667.8 2.5%

(1) Loans carried at fair value do not have an ACLL and are excluded from the ACLL ratio calculation.
(2) Includes both branded cards and retail services. The $10.8 billion of loan loss reserves represented approximately 63 months of coincident net credit loss coverage. As of December 31, 2021, North America branded
cards ACLL as a percentage of EOP loans was 7.1% and North America retail services ACLL as a percentage of EOP loans was 10.0%.
(3) Of the $0.2 billion, approximately $0.1 billion and $0.1 billion determined in accordance with ASC 450-20 and ASC 310-10-35 (troubled debt restructurings), respectively. Of the $48.9 billion in loans, approximately
$47.5 billion and $1.4 billion of the loans were evaluated in accordance with ASC 450-20 and ASC 310-10-35 (troubled debt restructurings), respectively. For additional information, see Note 15 to the Consolidated
Financial Statements.
(4) Includes mortgages and other retail loans.

December 31, 2020

In billions of dollars ACLL EOP loans, net of unearned income ACLL as a percentage of EOP loans(1)
Consumer
North America cards(2) $ 14.7 $130.4 11.3%
North America mortgages(3) 0.7 54.9 1.3
North America other 0.3 4.5 6.7
International cards 2.1 22.7 9.3
International other(4) 1.8 76.3 2.4
Total $ 19.6 $288.8 6.8%
Corporate
Commercial and industrial $ 3.6 $156.3 2.3%
Financial institutions 0.4 87.7 0.5
Mortgage and real estate 1.1 72.1 1.5
Installment and other 0.3 64.1 0.5
Total $ 5.4 $380.2 1.4%
Loans at fair value (1)
N/A $ 6.9 N/A
Total Citigroup $ 25.0 $675.9 3.7%

(1) Loans carried at fair value do not have an ACLL and are excluded from the ACLL ratio calculation.
(2) Includes both branded cards and retail services. The $14.7 billion of loan loss reserves represented approximately 53 months of coincident net credit loss coverage. As of December 31, 2020, North America branded
cards ACLL as a percentage of EOP loans was 10.0% and North America retail services ACLL as a percentage of EOP loans was 13.6%.
(3) Of the $0.7 billion, nearly all was allocated to North America mortgages in Corporate/Other, including approximately $0.5 billion and $0.2 billion determined in accordance with ASC 450-20 and ASC 310-10-35
(troubled debt restructurings), respectively. Of the $54.9 billion in loans, approximately $53.0 billion and $1.9 billion of the loans were evaluated in accordance with ASC 450-20 and ASC 310-10-35 (troubled debt
restructurings), respectively. For additional information, see Note 15 to the Consolidated Financial Statements.
(4) Includes mortgages and other retail loans.

84
The following table details Citi’s corporate credit allowance for credit losses on loans (ACLL) by industry exposure as of December 31, 2021:
In millions of dollars, except percentages Funded exposure(1) ACLL ACLL as a % of funded exposure
Transportation and industrials $ 51,502 $ 597 1.16%
Private bank 79,684 145 0.18
Consumer retail 32,894 288 0.88
Technology, media and telecom 28,542 170 0.60
Real estate 46,220 509 1.10
Power, chemicals, metals and mining 20,224 151 0.75
Banks and finance companies 36,804 197 0.54
Energy and commodities 13,485 268 1.99
Health 8,826 73 0.83
Public sector 12,464 74 0.59
Insurance 3,162 8 0.25
Asset managers and funds 6,649 34 0.51
Financial markets infrastructure 109 — —
Securities firms 613 10 1.63
Other industries 2,802 28 1.00
Total classifiably managed loans(2) $343,980 $2,552 0.74%
Loans managed on a delinquency basis (3)
$ 46,481 $ 287 0.62%
Total $390,461 $2,839 0.73%

(1) Funded exposure excludes loans carried at fair value of $6.1 billion that are not subject to ACLL under the CECL standard.
(2) As of December 31, 2021, the ACLL shown above reflects coverage of 0.4% of funded investment-grade exposure and 2.3% of funded non-investment-grade exposure.
(3) Primarily associated with delinquency-managed private bank loans including non-rated mortgage and real estate loans to private banking clients at December 31, 2021.

The following table details Citi’s corporate credit allowance for credit losses on loans (ACLL) by industry exposure as of December 31, 2020:
In millions of dollars, except percentages Funded exposure(1) ACLL ACLL as a % of funded exposure
Transportation and industrials $ 58,352 $1,558 2.67%
Private bank 75,693 224 0.30
Consumer retail 34,621 563 1.63
Technology, media and telecom 29,821 407 1.36
Real estate 42,711 718 1.68
Power, chemicals, metals and mining 20,156 312 1.55
Banks and finance companies 29,570 219 0.74
Energy and commodities 14,009 523 3.73
Health 8,575 144 1.68
Public sector 13,416 172 1.28
Insurance 1,925 7 0.36
Asset managers and funds 4,491 22 0.49
Financial markets infrastructure 229 — —
Securities firms 430 10 2.33
Other industries 4,247 122 2.87
Total classifiably managed loans(2) $338,246 $5,001 1.48%
Loans managed on a delinquency basis(3) $ 41,958 $ 401 0.96%
Total $380,204 $5,402 1.42%

(1) Funded exposure excludes loans carried at fair value of $6.8 billion that are not subject to ACLL under the CECL standard.
(2) As of December 31, 2021, the ACLL shown above reflects coverage of 0.5% of funded investment-grade exposure and 4.4% of funded non-investment-grade exposure.
(3) Primarily associated with delinquency-managed private bank loans including non-rated mortgage and real estate loans to private banking clients at December 31, 2020.

85
Non-Accrual Loans and Assets and Renegotiated Loans
There is a certain amount of overlap among non-accrual loans and
assets and renegotiated loans. The following summary provides a general
description of each category.

Non-Accrual Loans and Assets:

• Corporate and consumer (including commercial banking) non-accrual
status is based on the determination that payment of interest or principal
is doubtful.
• A corporate loan may be classified as non-accrual and still be performing
under the terms of the loan structure. Non-accrual loans may still be
current on interest payments. Citi’s corporate non-accrual loans were
$1.9 billion, $2.4 billion and $3.5 billion as of December 31, 2021,
September 30, 2021 and December 31, 2020, respectively. Of these,
approximately 54%, 56% and 59% were performing at December 31, 2021,
September 30, 2021 and December 31, 2020, respectively.
• Consumer non-accrual status is generally based on aging, i.e., the
borrower has fallen behind on payments.
• Consumer mortgage loans, other than Federal Housing Administration
(FHA) insured loans, are classified as non-accrual within 60 days of
notification that the borrower has filed for bankruptcy. In addition, home
equity loans are classified as non-accrual if the related residential first
mortgage loan is 90 days or more past due.
• North America branded cards and retail services are not included because,
under industry standards, credit card loans accrue interest until such
loans are charged off, which typically occurs at 180 days of contractual
delinquency.

Renegotiated Loans:
• Includes both corporate and consumer loans whose terms have been
modified in a troubled debt restructuring (TDR).
• Includes both accrual and non-accrual TDRs.

86
Non-Accrual Loans
The table below summarizes Citigroup’s non-accrual loans as of the periods indicated. Non-accrual loans may still be current on interest payments. In
situations where Citi reasonably expects that only a portion of the principal owed will ultimately be collected, all payments received are reflected as a reduction
of principal and not as interest income. For all other non-accrual loans, cash interest receipts are generally recorded as revenue.

December 31,
In millions of dollars 2021 2020 2019 2018 2017
Corporate non-accrual loans (1)

North America $ 801 $1,928  $1,214  $ 586  $ 966 

EMEA 399 661  430  375  849 
Latin America 568 719  473  307  348 
Asia 109 219  71  243  70 
Total corporate non-accrual loans $1,877 $3,527  $2,188  $1,511  $2,233 
Consumer non-accrual loans (1)

North America $ 759 $1,059  $ 905  $1,138  $1,468 

Latin America 524 774  632  638  688 
Asia(2) 219 308  279  250  243 
Total consumer non-accrual loans $1,502 $2,141  $1,816  $2,026  $2,399 
Total non-accrual loans $3,379 $5,668  $4,004  $3,537  $4,632 

(1) For years prior to 2020, excludes purchased credit-deteriorated loans, as they are generally accruing interest. The carrying value of these loans was $128 million at December 31, 2019, $128 million at December 31,
2018 and $167 million at December 31, 2017.
(2) Asia GCB includes balances in certain EMEA countries for all periods presented.

The changes in Citigroup’s non-accrual loans were as follows:

Year ended Year ended

December 31, 2021 December 31, 2020
In millions of dollars Corporate Consumer Total Corporate Consumer Total
Non-accrual loans at beginning of year $ 3,527 $ 2,141 $ 5,668 $ 2,188  $ 1,816  $ 4,004 
Additions 1,708 2,018 3,726 5,103  2,829  7,932 
Sales and transfers to HFS (405) (199) (604) (2) (95) (97)
Returned to performing (217) (615) (832) (157) (389) (546)
Paydowns/settlements (2,215) (630) (2,845) (3,117) (677) (3,794)
Charge-offs (493) (1,180) (1,673) (446) (1,132) (1,578)
Other (28) (33) (61) (42) (211) (253)
Ending balance $ 1,877 $ 1,502 $ 3,379 $ 3,527  $ 2,141  $ 5,668 

87
 The table below summarizes Citigroup’s other real estate owned (OREO) assets. OREO is recorded on the Consolidated Balance Sheet within Other assets.
This represents the carrying value of all real estate property acquired by foreclosure or other legal proceedings when Citi has taken possession of the collateral:

December 31,
In millions of dollars 2021 2020 2019 2018 2017
OREO
North America $ 15 $ 19  $ 39  $ 64  $ 89 
EMEA — —  1  1  2 
Latin America 8 7  14  12  35 
Asia 4 17  7  22  18 
Total OREO $ 27 $ 43  $ 61  $ 99  $ 144 

Non-accrual assets
Corporate non-accrual loans $1,877 $3,527  $2,188  $1,511  $2,233 
Consumer non-accrual loans 1,502 2,141  1,816  2,026  2,399 
Non-accrual loans (NAL) $3,379 $5,668  $4,004  $3,537  $4,632 
OREO $ 27 $ 43  $ 61  $ 99  $ 144 
Non-accrual assets (NAA) $3,406 $5,711  $4,065  $3,636  $4,776 

NAL as a percentage of total loans 0.51% 0.84 % 0.57 % 0.52 % 0.69 %

NAA as a percentage of total assets 0.15 0.25  0.21  0.19  0.26 
ACLL as a percentage of NAL(1) 487 440  319  348  267 

(1) The ACLL includes the allowance for Citi’s credit card portfolios and purchased distressed loans, while the non-accrual loans exclude credit card balances (with the exception of certain international portfolios) and, prior
to 2020, include purchased credit-deteriorated loans as these continue to accrue interest until charge-off.

88
Renegotiated Loans Forgone Interest Revenue on Loans(1)
The following table presents Citi’s loans modified in TDRs:
In non-
In U.S. U.S. 2021
Dec. 31, Dec. 31, In millions of dollars offices offices total
In millions of dollars 2021 2020
Interest revenue that would have been accrued
Corporate renegotiated loans(1)
at original contractual rates(2) $343 $346 $689
In U.S. offices
Amount recognized as interest revenue(2) 166 189 355
Commercial and industrial(2) $ 103 $ 193 
Mortgage and real estate 51 60  Forgone interest revenue $177 $157 $334
Financial institutions — — 
Other 32 30  (1) Relates to corporate non-accrual loans, renegotiated loans and consumer loans on which accrual of
interest has been suspended.
Total $ 186 $ 283  (2) Interest revenue in offices outside the U.S. may reflect prevailing local interest rates, including the
effects of inflation and monetary correction in certain countries.
In offices outside the U.S.
Commercial and industrial(2) $ 133 $ 132 
Mortgage and real estate 22 32 
Financial institutions — — 
Other 9 3 
Total $ 164 $ 167 
Total corporate renegotiated loans $ 350 $ 450 

Consumer renegotiated loans (3)

In U.S. offices
Mortgage and real estate $1,422 $1,904 
Cards 1,269 1,449 
Installment and other 26 33 
Total $2,717 $3,386 
In offices outside the U.S.
Mortgage and real estate $ 223 $ 361 
Cards 313 533 
Installment and other 428 519 
Total $ 964 $1,413 
Total consumer renegotiated loans $3,681 $4,799 

(1) Includes $321 million and $415 million of non-accrual loans included in the non-accrual loans table
above at December 31, 2021 and 2020, respectively. The remaining loans were accruing interest.
(2) In addition to modifications reflected as TDRs at December 31, 2021 and 2020, Citi also modified
none and $47 million, respectively, of commercial loans risk rated “Substandard Non-Performing” or
worse (asset category defined by banking regulators) in offices outside the U.S. These modifications
were not considered TDRs because the modifications did not involve a concession or because
the modifications qualified for exemptions from TDR accounting provided by the CARES Act or the
interagency guidance.
(3) Includes $627 million and $873 million of non-accrual loans included in the non-accrual loans table
above at December 31, 2021 and 2020, respectively. The remaining loans were accruing interest.

89
LIQUIDITY RISK
Overview As referenced above, Citi’s funding and liquidity framework ensures that
Adequate and diverse sources of funding and liquidity are essential to Citi’s the tenor of these funding sources is of sufficient term in relation to the tenor
businesses. Funding and liquidity risks arise from several factors, many of of its asset base. The goal of Citi’s asset/liability management is to ensure
which are mostly or entirely outside Citi’s control, such as disruptions in the that there is sufficient liquidity and tenor in the liability structure relative
financial markets, changes in key funding sources, credit spreads, changes in to the liquidity profile of the assets. This reduces the risk that liabilities will
Citi’s credit ratings and macroeconomic, geopolitical and other conditions. become due before assets mature or are monetized. This excess liquidity is
For additional information, see “Risk Factors—Liquidity Risks” above. held primarily in the form of high-quality liquid assets (HQLA), as set forth
Citi’s funding and liquidity management objectives are aimed at in the table below.
(i) funding its existing asset base, (ii) growing its core businesses, Citi’s liquidity is managed via a centralized treasury model by Treasury, in
(iii) maintaining sufficient liquidity, structured appropriately, so that Citi conjunction with regional and in-country treasurers with oversight provided
can operate under a variety of adverse circumstances, including potential by Independent Risk Management and various Asset & Liability Committees
Company-specific and/or market liquidity events in varying durations and (ALCOs) at the Citigroup, region, country and business levels. Pursuant
severity, and (iv) satisfying regulatory requirements, including, among other to this approach, Citi’s HQLA is managed with emphasis on asset-liability
things, those related to resolution planning (for additional information, management and entity-level liquidity adequacy throughout Citi.
see “Resolution Plan” and “Total Loss-Absorbing Capacity (TLAC)” below). Citi’s CRO and Chief Financial Officer co-chair Citigroup’s ALCO, which
Citigroup’s primary liquidity objectives are established by entity, and in includes Citi’s Treasurer and other senior executives. The ALCO sets the
aggregate, across two major categories: strategy of the liquidity portfolio and monitors portfolio performance (for
additional information about the ALCO, see “Risk Governance—Board
• Citibank (including Citibank Europe plc, Citibank Singapore Ltd. and and Executive Management Committees” above). Significant changes to
Citibank (Hong Kong) Ltd.); and
portfolio asset allocations are approved by the ALCO. Citi also has other
• Citi’s non-bank and other entities, including the parent holding company ALCOs, which are established at various organizational levels to ensure
(Citigroup Inc.), Citi’s primary intermediate holding company (Citicorp appropriate oversight for countries, franchise businesses and regions, serving
LLC), Citi’s broker-dealer subsidiaries (including Citigroup Global as the primary governance committees for managing Citi’s balance sheet and
Markets Inc., Citigroup Global Markets Limited. and Citigroup Global liquidity.
Markets Japan Inc.) and other bank and non-bank subsidiaries that are As a supplement to ALCO, Citi’s Funding and Liquidity Risk Committee
consolidated into Citigroup (including Citibanamex). (FLRC) is a more focused assembly for funding and liquidity risk matters.
At an aggregate Citigroup level, Citi’s goal is to maintain sufficient The FLRC reviews and discusses the funding and liquidity risk profile of, as
funding in amount and tenor to fully fund customer assets and to provide well as risk management practices for Citigroup and Citibank and reports its
an appropriate amount of cash and high-quality liquid assets (as discussed findings and recommendations to each relevant ALCO as appropriate.
below), even in times of stress, in order to meet its payment obligations as
Liquidity Monitoring and Measurement
they come due. The liquidity risk management framework provides that in
addition to the aggregate requirements, certain entities be self-sufficient or Stress Testing
net providers of liquidity, including in conditions established under their Liquidity stress testing is performed for each of Citi’s major entities, operating
designated stress tests. subsidiaries and/or countries. Stress testing and scenario analyses are
Citi’s primary funding sources include (i) corporate and consumer intended to quantify the potential impact of an adverse liquidity event on
deposits via Citi’s bank subsidiaries, including Citibank, N.A. (Citibank), (ii) the balance sheet and liquidity position, and to identify viable funding
long-term debt (primarily senior and subordinated debt) mainly issued by alternatives that can be utilized. These scenarios include assumptions about
Citigroup Inc., as the parent, and Citibank, and (iii) stockholders’ equity. significant changes in key funding sources, market triggers (such as credit
These sources may be supplemented by short-term borrowings, primarily in ratings), potential uses of funding and macroeconomic, geopolitical and
the form of secured funding transactions. other conditions. These conditions include expected and stressed market
conditions as well as Company-specific events.
Liquidity stress tests are performed to ascertain potential mismatches
between liquidity sources and uses over a variety of time horizons and over
different stressed conditions. To monitor the liquidity of an entity, these stress
tests and potential mismatches are calculated with varying frequencies, with
several tests performed daily.
Given the range of potential stresses, Citi maintains contingency funding
plans on a consolidated basis and for individual entities. These plans specify
a wide range of readily available actions for a variety of adverse market
conditions or idiosyncratic stresses.

90
High-Quality Liquid Assets (HQLA)

Citibank Citi non-bank and other entities Total

Dec. 31, Sept. 30, Dec. 31, Dec. 31, Sept. 30, Dec. 31, Dec. 31, Sept. 30, Dec. 31,
In billions of dollars 2021 2021 2020 2021 2021 2020 2021 2021 2020
Available cash $253.6 $255.1 $304.3 $ 2.6 $ 3.5 $ 2.1 $256.2 $258.6 $306.4
U.S. sovereign 119.6 108.9 77.8 63.1 64.3 64.8 182.7 173.2 142.6
U.S. agency/agency MBS 45.0 45.3 31.8 5.7 6.0 6.5 50.7 51.3 38.3
Foreign government debt(1) 48.9 50.2 39.6 13.6 11.2 16.2 62.5 61.4 55.8
Other investment grade 1.6 1.8 1.2 0.8 0.3 0.5 2.4 2.1 1.7
Total HQLA (AVG) $468.7 $461.2 $454.7 $85.8 $85.3 $90.1 $554.5 $546.5 $544.8

Note: The amounts set forth in the table above are presented on an average basis. For securities, the amounts represent the liquidity value that potentially could be realized and, therefore, exclude any securities that are
encumbered and incorporate any haircuts applicable under the U.S. LCR rule. The table above incorporates various restrictions that could limit the transferability of liquidity between legal entities, including Section 23A
of the Federal Reserve Act.
(1) Foreign government debt includes securities issued or guaranteed by foreign sovereigns, agencies and multilateral development banks. Foreign government debt securities are held largely to support local liquidity
requirements and Citi’s local franchises and principally include government bonds from Japan, Mexico, South Korea, India and Hong Kong.

The table above includes average amounts of HQLA held at Citigroup’s Short-Term Liquidity Measurement: Liquidity Coverage
operating entities that are eligible for inclusion in the calculation of Ratio (LCR)
Citigroup’s consolidated Liquidity Coverage ratio (LCR), pursuant to the U.S. In addition to internal 30-day liquidity stress testing performed for Citi’s
LCR rules. These amounts include the HQLA needed to meet the minimum major entities, operating subsidiaries and countries, Citi also monitors its
requirements at these entities and any amounts in excess of these minimums liquidity by reference to the LCR.
that are assumed to be transferable to other entities within Citigroup. The LCR is calculated by dividing HQLA by estimated net outflows
Citigroup’s HQLA increased quarter-over-quarter as of the fourth quarter of assuming a stressed 30-day period, with the net outflows determined by
2021, primarily reflecting an increase in deposits. standardized stress outflow and inflow rates prescribed in the LCR rule. The
As of December 31, 2021, Citigroup had $961 billion of available liquidity outflows are partially offset by contractual inflows from assets maturing
resources to support client and business needs, including end-of-period HQLA within 30 days. Similar to outflows, the inflows are calculated based on
assets; additional unencumbered securities, including excess liquidity held prescribed factors to various assets categories, such as retail loans as well as
at bank entities that is non-transferable to other entities within Citigroup; unsecured and secured wholesale lending. The minimum LCR requirement
and available assets not already accounted for within Citi’s HQLA to support is 100%.
Federal Home Loan Bank (FHLB) and Federal Reserve Bank discount window The table below details the components of Citi’s LCR calculation and
borrowing capacity. HQLA in excess of net outflows for the periods indicated:

Dec. 31, Sept. 30, Dec. 31,

In billions of dollars 2021 2021 2020
HQLA $554.5 $546.5 $544.8 
Net outflows 482.9 474.8 460.7 
LCR 115% 115% 118 %
HQLA in excess of net outflows $ 71.6 $ 71.7 $ 84.1 

Note: The amounts are presented on an average basis.

As of December 31, 2021, Citi’s average LCR was unchanged sequentially,

as Citi’s average HQLA and net outflows increased proportionately.

91
Long-Term Liquidity Measurement: Net Stable Funding On an average basis, loans were largely unchanged both year-over-year
Ratio (NSFR) and sequentially. Excluding the impact of FX translation, average loans
As previously disclosed, in October 2020, the U.S. banking agencies adopted increased 1% year-over-year and were largely unchanged sequentially. On
a final rule to assess the availability of a bank’s stable funding against a this basis, average GCB loans declined 4% year-over-year, primarily reflecting
required level. the reclassification of loans to held-for-sale as a result of Citi’s entry into
In general, a bank’s available stable funding includes portions of equity, agreements to sell its consumer banking businesses in Australia and
deposits and long-term debt, while its required stable funding will be based the Philippines.
on the liquidity characteristics of its assets, derivatives and commitments. Excluding the impact of FX translation, average ICG loans increased 5%
Standardized weightings are required to be applied to the various asset and year-over-year. Loans in corporate lending declined 12% on an average basis,
liabilities classes. The ratio of available stable funding to required stable reflecting net repayments as Citi continued to assist its clients in accessing
funding is required to be greater than 100%. the capital markets, as well as lower demand. Private bank loans increased
The final rule became effective beginning July 1, 2021, while public 10%, largely driven by increased secured lending to high-net-worth clients.
disclosure requirements to report the ratio will occur on a semiannual basis Markets and securities services loans increased 29%, reflecting an increase
beginning June 30, 2023. Citi was in compliance with the final rule as of in securitization financing. TTS loans increased 15%, reflecting an increase
December 31, 2021. in trade flows and originations.
Average Corporate/Other loans continued to decline (down 46%), driven
Loans by the wind-down of legacy assets.
As part of its funding and liquidity objectives, Citi seeks to fund its existing
asset base appropriately as well as maintain sufficient liquidity to grow Deposits
its GCB and ICG businesses, including its loan portfolio. Citi maintains a The table below details the average deposits, by business and/or segment, and
diversified portfolio of loans to its consumer and institutional clients. The the total end-of-period deposits for each of the periods indicated:
table below details the average loans, by business and/or segment, and the
total end-of-period loans for each of the periods indicated: Dec. 31, Sept. 30, Dec. 31,
In billions of dollars 2021 2021 2020
Dec. 31, Sept. 30, Dec. 31, Global Consumer Banking(1)
In billions of dollars 2021 2021 2020 North America $ 214.0 $ 208.4 $ 188.9 
Global Consumer Banking Latin America 23.8 24.2 24.3 
North America $176.8 $173.8 $179.4  Asia(2) 117.2 120.7 120.0 
Latin America 13.0 13.2 14.3  Total $ 355.0 $ 353.3 $ 333.2 
Asia(1) 72.5 75.9 82.4 
Institutional Clients Group
Total $262.3 $262.9 $276.1  Treasury and trade solutions (TTS) $ 690.6 $ 674.8 $ 686.5 
Institutional Clients Group Banking ex-TTS 188.2 179.5 163.2 
Corporate lending $127.5 $129.2 $146.2  Markets and securities services 129.3 127.2 109.3 
Treasury and trade solutions (TTS) 76.3 73.7 67.1  Total $ 1,008.1 $ 981.6 $ 959.0 
Private bank 124.5 125.9 113.3 
Markets and securities services and other 72.5 72.0 56.1  Corporate/Other $ 7.2 $ 8.2 $ 13.1 

Total $400.8 $400.8 $382.7  Total Citigroup deposits (AVG) $ 1,370.3 $ 1,343.0 $ 1,305.3 

Total Corporate/Other $ 4.3 $ 4.7 $ 7.4  Total Citigroup deposits (EOP) $ 1,317.2 $ 1,347.5 $ 1,280.7 

Total Citigroup loans (AVG) $667.4 $668.5 $666.2  (1) Reflects deposits within retail banking.
(2) Includes deposits in certain EMEA countries for all periods presented.
Total Citigroup loans (EOP) $667.8 $664.8 $676.1 

(1) Includes loans in certain EMEA countries for all periods presented.
End-of-period deposits increased 3% year-over-year and declined
2% sequentially.
As of the fourth quarter of 2021, end-of period loans declined 1% year- As of the fourth quarter of 2021, on an average basis, deposits increased
over-year and were largely unchanged quarter-over-quarter. 5% year-over-year and 2% sequentially. Excluding the impact of FX
translation, average deposits grew 6% from the prior-year period and
3% sequentially. The year-over-year increase reflected continued client
engagement as well as the elevated level of liquidity in the financial system.
Excluding the impact of FX translation, average deposits in GCB increased
7%, with continued strong growth in North America.
Excluding the impact of FX translation, average deposits in ICG grew 6%
year-over-year, with strong growth in the private bank and securities services.

92
Long-Term Debt Long-Term Debt Outstanding
Long-term debt (generally defined as debt with original maturities of one The following table sets forth Citi’s end-of-period total long-term debt
year or more) represents the most significant component of Citi’s funding outstanding for each of the dates indicated:
for the Citigroup parent company and Citi’s non-bank subsidiaries and is a
supplementary source of funding for the bank entities. Dec. 31, Sept. 30, Dec. 31,
Long-term debt is an important funding source due in part to its In billions of dollars 2021 2021 2020
multiyear contractual maturity structure. The weighted-average maturity of Non-bank(1)
unsecured long-term debt issued by Citigroup and its affiliates (including Benchmark debt:
Senior debt $117.8 $123.9 $126.2 
Citibank) with a remaining life greater than one year was approximately
Subordinated debt 25.7 26.0 27.1 
8.6 years as of December 31, 2021, unchanged from the prior quarter and Trust preferred 1.7 1.7 1.7 
the prior year. The weighted-average maturity is calculated based on the Customer-related debt 78.3 74.7 65.2 
contractual maturity of each security. For securities that are redeemable prior Local country and other(2) 7.3 7.2 6.7 
to maturity at the option of the holder, the weighted-average maturity is Total non-bank $230.8 $233.5 $226.9 
calculated based on the earliest date an option becomes exercisable. Bank
Citi’s long-term debt outstanding at the Citigroup parent company FHLB borrowings $ 5.3 $ 5.8 $ 10.9 
includes benchmark senior and subordinated debt and what Citi refers to Securitizations(3) 9.6 11.0 16.6 
as customer-related debt, consisting of structured notes, such as equity- Citibank benchmark senior debt 3.6 3.6 13.6 
Local country and other(2) 5.1 4.3 3.6
and credit-linked notes, as well as non-structured notes. Citi’s issuance
of customer-related debt is generally driven by customer demand and Total bank $ 23.6 $ 24.7 $ 44.7
complements benchmark debt issuance as a source of funding for Citi’s Total long-term debt $254.4 $258.2 $271.7 
non-bank entities. Citi’s long-term debt at the bank includes Citibank
Note: Amounts represent the current value of long-term debt on Citi’s Consolidated Balance Sheet that,
benchmark senior debt, FHLB borrowings and securitizations. for certain debt instruments, includes consideration of fair value, hedging impacts and unamortized
discounts and premiums.
(1) Non-bank includes long-term debt issued to third parties by the parent holding company (Citigroup)
and Citi’s non-bank subsidiaries (including broker-dealer subsidiaries) that are consolidated into
Citigroup. As of December 31, 2021, non-bank included $65.9 billion of long-term debt issued by
Citi’s broker-dealer and other subsidiaries, as well as certain Citigroup consolidated hedging activities.
(2) Local country and other includes debt issued by Citi’s affiliates in support of their local operations.
Within non-bank, certain secured financing is also included. Within bank, borrowings under certain
U.S. government-sponsored liquidity programs are also included.
(3) Predominantly credit card securitizations, primarily backed by branded credit card receivables.

As of the fourth quarter of 2021, Citi’s total long-term debt outstanding

decreased year-over-year, primarily driven by declines in unsecured
benchmark senior debt at the non-bank entities and the bank, as well as
securitizations and FHLB borrowings at the bank. The decrease in total
long-term debt was partially offset by the issuance of customer-related debt
at the non-bank entities. Sequentially, long-term debt outstanding decreased,
driven primarily by decreases in unsecured benchmark senior debt at the
non-bank entities and securitizations at the bank, partially offset by the
issuance of customer-related debt at the non-bank entities.
As part of its liability management, Citi also has considered, and may
continue to consider, opportunities to redeem or repurchase its long-term
debt pursuant to open market purchases, tender offers or other means.
Such redemptions and repurchases help reduce Citi’s overall funding costs.
During 2021, Citi redeemed or repurchased an aggregate of approximately
$33.8 billion of its outstanding long-term debt.

93
Long-Term Debt Issuances and Maturities
The table below details Citi’s long-term debt issuances and maturities (including repurchases and redemptions) during the periods presented:

2021 2020 2019

In billions of dollars Maturities Issuances Maturities Issuances Maturities Issuances
Non-bank
Benchmark debt:
Senior debt $17.6 $15.4 $ 6.5 $20.4 $16.5 $16.2
Subordinated debt — — — — — —
Trust preferred — — — — — —
Customer-related debt 31.2 48.7 27.7 36.8 12.7 25.1
Local country and other 3.3 3.6 2.4 1.4 1.1 5.4
Total non-bank $52.1 $67.7 $36.6 $58.6 $30.3 $46.7
Bank
FHLB borrowings $ 5.7 $ — $ 7.5 $12.9 $ 7.1 $ 2.1
Securitizations 6.1 — 4.6 0.3 7.9 0.1
Citibank benchmark senior debt 9.8 — 9.8 — 4.8 8.8
Local country and other 1.2 2.9 4.9 4.6 0.9 1.4
Total bank $22.8 $ 2.9 $26.8 $17.8 $20.7 $12.4
Total $74.9 $70.6 $63.4 $76.4 $51.0 $59.1

The table below shows Citi’s aggregate long-term debt maturities (including repurchases and redemptions) in 2021, as well as its aggregate expected remaining
long-term debt maturities by year as of December 31, 2021:

Maturities
In billions of dollars 2021 2022 2023 2024 2025 2026 Thereafter Total
Non-bank
Benchmark debt:
Senior debt $17.6 $ 8.2 $12.6 $11.0 $10.7 $18.2 $ 57.1 $117.8
Subordinated debt — 0.8 1.3 1.0 5.2 2.6 14.8 25.7
Trust preferred — — — — — — 1.7 1.7
Customer-related debt 31.2 11.9 10.2 8.5 4.9 5.5 37.3 78.3
Local country and other 3.3 2.3 2.2 0.1 — 0.7 1.8 7.3
Total non-bank $52.1 $23.2 $26.3 $20.6 $20.8 $27.0 $112.7 $230.8
Bank
FHLB borrowings $ 5.7 $ 5.3 $ — $ — $ — $ — $ — $ 5.3
Securitizations 6.1 2.1 3.3 1.4 0.4 — 2.4 9.6
Citibank benchmark senior debt 9.8 0.9 — 2.7 — — — 3.6
Local country and other 1.2 1.5 0.9 0.9 0.1 0.1 1.6 5.1
Total bank $22.8 $ 9.8 $ 4.2 $ 5.0 $ 0.5 $ 0.1 $ 4.0 $ 23.6
Total long-term debt $74.9 $33.0 $30.5 $25.6 $21.3 $27.1 $116.7 $254.4

94
Resolution Plan (ii) Citigroup executed an inter-affiliate agreement with Citicorp,
Citi is required under Title I of the Dodd-Frank Wall Street Reform Citigroup’s operating material legal entities and certain other affiliated
and Consumer Protection Act of 2010 (Dodd-Frank Act) and the rules entities pursuant to which Citicorp is required to provide liquidity
promulgated by the FDIC and Federal Reserve Board to periodically submit a and capital support to Citigroup’s operating material legal entities
plan for Citi’s rapid and orderly resolution under the U.S. Bankruptcy Code in in the event Citigroup were to enter bankruptcy proceedings (Citi
the event of material financial distress or failure. Support Agreement);
On December 17, 2019, the Federal Reserve Board and FDIC issued (iii) pursuant to the Citi Support Agreement:
feedback on the resolution plans filed on July 1, 2019 by the eight U.S.
Global Systemically Important Banks, including Citigroup. The Federal • Citigroup made an initial contribution of assets, including certain
Reserve Board and FDIC identified one shortcoming, but no deficiencies, in high-quality liquid assets and inter-affiliate loans (Contributable
Citigroup’s resolution plan relating to governance mechanisms. Based on Assets), to Citicorp, and Citicorp became the business-as-usual
regulatory changes effective December 31, 2019, Citigroup’s 2021 resolution funding vehicle for Citigroup’s operating material legal entities;
plan submission, which was filed on July 1, 2021 was a targeted resolution • Citigroup will be obligated to continue to transfer Contributable Assets
plan, only including a subset of the information of a full resolution plan and to Citicorp over time, subject to certain amounts retained by Citigroup
additional information, identified by the Federal Reserve Board and FDIC to, among other things, meet Citigroup’s near-term cash needs;
on July 1, 2020. Citigroup will alternate between submitting a full resolution • in the event of a Citigroup bankruptcy, Citigroup will be required to
plan and a targeted resolution plan on a biennial cycle. For additional contribute most of its remaining assets to Citicorp; and
information on Citi’s resolution plan submissions, see “Risk Factors—
Strategic Risks” above. Citigroup’s preferred resolution strategy is “single (iv) the obligations of both Citigroup and Citicorp under the Citi Support
point of entry” under the U.S. Bankruptcy Code.  Agreement, as well as the Contributable Assets, are secured pursuant to
Under Citi’s preferred “single point of entry” resolution plan strategy, a security agreement.
only Citigroup, the parent holding company, would enter into bankruptcy, The Citi Support Agreement provides two mechanisms, besides Citicorp’s
while Citigroup’s material legal entities (as defined in the public section of issuing of dividends to Citigroup, pursuant to which Citicorp will be required
its 2021 resolution plan, which can be found on the Federal Reserve Board’s to transfer cash to Citigroup during business as usual so that Citigroup can
and FDIC’s websites) would remain operational outside of any resolution fund its debt service as well as other operating needs: (i) one or more funding
or insolvency proceedings. Citigroup’s resolution plan has been designed to notes issued by Citicorp to Citigroup and (ii) a committed line of credit under
minimize the risk of systemic impact to the U.S. and global financial systems, which Citicorp may make loans to Citigroup.
while maximizing the value of the bankruptcy estate for the benefit of
Citigroup’s creditors, including its unsecured long-term debt holders. Total Loss-Absorbing Capacity (TLAC)
In addition, in line with the Federal Reserve Board’s final total loss- U.S. GSIBs are required to maintain minimum levels of TLAC and eligible
absorbing capacity (TLAC) rule, Citigroup believes it has developed the LTD, each set by reference to the GSIB’s consolidated risk-weighted
resolution plan so that Citigroup’s shareholders and unsecured creditors— assets (RWA) and total leverage exposure. The intended purpose of the
including its unsecured long-term debt holders—bear any losses resulting requirements is to facilitate the orderly resolution of U.S. GSIBs under the
from Citigroup’s bankruptcy. Accordingly, any value realized by holders of U.S. Bankruptcy Code and Title II of the Dodd-Frank Act. For additional
its unsecured long-term debt may not be sufficient to repay the amounts information, including Citi’s TLAC and LTD amounts and ratios, see “Capital
owed to such debt holders in the event of a bankruptcy or other resolution Resources—Current Regulatory Capital Standards” and “Risk Factors—
proceeding of Citigroup. Compliance Risks” above.
The FDIC has also indicated that it was developing a single point of entry
strategy to implement the Orderly Liquidation Authority under Title II of the
Dodd-Frank Act, which provides the FDIC with the ability to resolve a firm
when it is determined that bankruptcy would have serious adverse effects on
financial stability in the U.S.
As previously disclosed, in response to feedback received from the Federal
Reserve Board and FDIC, Citigroup took the following actions:
(i) Citicorp LLC (Citicorp), an existing wholly owned subsidiary of
Citigroup, was established as an intermediate holding company (an
IHC) for certain of Citigroup’s operating material legal entities;

95
SECURED FUNDING TRANSACTIONS AND SHORT- as U.S. Treasury securities, U.S. agency securities and foreign government
TERM BORROWINGS debt securities. Other secured funding is secured by less liquid securities,
Citi supplements its primary sources of funding with short-term financings including equity securities, corporate bonds and asset-backed securities,
that generally include (i) secured funding transactions consisting of the tenor of which is generally equal to or longer than the tenor of the
securities loaned or sold under agreements to repurchase, i.e., repos, and corresponding matched book assets.
(ii) to a lesser extent, short-term borrowings consisting of commercial paper The remainder of the secured funding activity in the broker-dealer
and borrowings from the FHLB and other market participants. subsidiaries serves to fund securities inventory held in the context of market-
making and customer activities. To maintain reliable funding under a wide
Secured Funding Transactions
range of market conditions, including under periods of stress, Citi manages
Secured funding is primarily accessed through Citi’s broker-dealer these activities by taking into consideration the quality of the underlying
subsidiaries to fund efficiently both (i) secured lending activity and (ii) a collateral and establishing minimum required funding tenors. The weighted
portion of the securities inventory held in the context of market-making and average maturity of Citi’s secured funding of less liquid securities inventory
customer activities. Citi also executes a smaller portion of its secured funding was greater than 110 days as of December 31, 2021.
transactions through its bank entities, which are typically collateralized by Citi manages the risks in its secured funding by conducting daily stress
government debt securities. Generally, daily changes in the level of Citi’s tests to account for changes in capacity, tenor, haircut, collateral profile and
secured funding are primarily due to fluctuations in secured lending activity client actions. In addition, Citi maintains counterparty diversification by
in the matched book (as described below) and securities inventory. establishing concentration triggers and assessing counterparty reliability and
Secured funding of $191 billion as of December 31, 2021 decreased 3% stability under stress. Citi generally sources secured funding from more than
from the prior-year period and 9% sequentially. Excluding the impact of FX 150 counterparties.
translation, secured funding decreased 1% from the prior-year period and
8% sequentially, driven by normal business activity. The average balance Short-Term Borrowings
for secured funding was approximately $222 billion for the quarter ended Citi’s short-term borrowings of $28 billion as of the fourth quarter of 2021
December 31, 2021. decreased 5% year-over-year, reflecting a decline in FHLB advances, and 6%
The portion of secured funding in the broker-dealer subsidiaries that sequentially, primarily driven by a decline in structured notes (see Note 17 to
funds secured lending is commonly referred to as “matched book” activity. the Consolidated Financial Statements for further information on Citigroup’s
The majority of this activity is secured by high-quality liquid securities such and its affiliates’ outstanding short-term borrowings).

96
CREDIT RATINGS
Citigroup’s funding and liquidity, funding capacity, ability to access capital
markets and other sources of funds, the cost of these funds and its ability to
maintain certain deposits are partially dependent on its credit ratings.
The table below shows the ratings for Citigroup and Citibank as of
December 31, 2021. While not included in the table below, the long-term and
short-term ratings of Citigroup Global Markets Holding Inc. (CGMHI) were
BBB+/A-2 at S&P Global Ratings and A+/F1 at Fitch as of December 31, 2021.

Citigroup Inc. Citibank, N.A.

Senior Commercial Long- Short-
Ratings as of December 31, 2021 debt paper Outlook term term Outlook
Fitch Ratings A F1 Stable A+ F1 Stable
Moody’s Investors Service A3 P-2 Stable Aa3 P-1 Stable
S&P Global Ratings BBB+ A-2 Stable A+ A-1 Stable

Potential Impacts of Ratings Downgrades As of December 31, 2021, Citi estimates that a hypothetical one-notch
Ratings downgrades by Moody’s, Fitch or S&P Global Ratings could downgrade of the senior debt/long-term rating of Citibank across all three
negatively impact Citigroup’s and/or Citibank’s funding and liquidity due to major rating agencies could impact Citibank’s funding and liquidity due to
reduced funding capacity, including derivative triggers, which could take the derivative triggers by approximately $0.6 billion, compared to $0.5 billion
form of cash obligations and collateral requirements. as of September 30, 2021. Other funding sources, such as secured financing
The following information is provided for the purpose of analyzing transactions and other margin requirements, for which there are no explicit
the potential funding and liquidity impact to Citigroup and Citibank of triggers, could also be adversely affected.
a hypothetical simultaneous ratings downgrade across all three major In total, as of December 31, 2021, Citi estimates that a one-notch
rating agencies. This analysis is subject to certain estimates, estimation downgrade of Citigroup and Citibank across all three major rating agencies
methodologies, judgments and uncertainties. Uncertainties include potential could result in increased aggregate cash obligations and collateral
ratings limitations that certain entities may have with respect to permissible requirements of approximately $1.4 billion, compared to $1.6 billion as
counterparties, as well as general subjective counterparty behavior. For of September 30, 2021 (see also Note 22 to the Consolidated Financial
example, certain corporate customers and markets counterparties could Statements). As detailed under “High-Quality Liquid Assets” above, Citigroup
re-evaluate their business relationships with Citi and limit transactions in has various liquidity resources available to its bank and non-bank entities in
certain contracts or market instruments with Citi. Changes in counterparty part as a contingency for the potential events described above.
behavior could impact Citi’s funding and liquidity, as well as the results In addition, a broad range of mitigating actions are currently included
of operations of certain of its businesses. The actual impact to Citigroup in Citigroup’s and Citibank’s contingency funding plans. For Citigroup,
or Citibank is unpredictable and may differ materially from the potential these mitigating factors include, but are not limited to, accessing surplus
funding and liquidity impacts described below. For additional information funding capacity from existing clients, tailoring levels of secured lending
on the impact of credit rating changes on Citi and its applicable subsidiaries, and adjusting the size of select trading books and collateralized borrowings
see “Risk Factors—Liquidity Risks” above. at certain Citibank subsidiaries. Mitigating actions available to Citibank
include, but are not limited to, selling or financing highly liquid government
Citigroup Inc. and Citibank—Potential Derivative Triggers securities, tailoring levels of secured lending, adjusting the size of select
As of December 31, 2021, Citi estimates that a hypothetical one-notch trading assets, reducing loan originations and renewals, raising additional
downgrade of the senior debt/long-term rating of Citigroup Inc. across all deposits or borrowing from the FHLB or central banks. Citi believes these
three major rating agencies could impact Citigroup’s funding and liquidity mitigating actions could substantially reduce the funding and liquidity risk,
due to derivative triggers by approximately $0.8 billion, compared to $1.1 if any, of the potential downgrades described above.
billion as of September 30, 2021. Other funding sources, such as secured
financing transactions and other margin requirements, for which there are
no explicit triggers, could also be adversely affected.

97
Citibank—Additional Potential Impacts
In addition to the above derivative triggers, Citi believes that a potential
downgrade of Citibank’s senior debt/long-term rating across any of the
three major rating agencies could also have an adverse impact on the
commercial paper/short-term rating of Citibank. Citibank has provided
liquidity commitments to consolidated asset-backed commercial paper
conduits, primarily in the form of asset purchase agreements. As of December
31, 2021, Citibank had liquidity commitments of approximately $9.0 billion
to consolidated asset-backed commercial paper conduits, compared to $10.0
billion as of September 30, 2021 (for additional information, see Note 21 to
the Consolidated Financial Statements).
In addition to the above-referenced liquidity resources of certain Citibank
entities, Citibank could reduce the funding and liquidity risk, if any, of the
potential downgrades described above through mitigating actions, including
repricing or reducing certain commitments to commercial paper conduits.
In the event of the potential downgrades described above, Citi believes that
certain corporate customers could re-evaluate their deposit relationships
with Citibank. This re-evaluation could result in clients adjusting their
discretionary deposit levels or changing their depository institution, which
could potentially reduce certain deposit levels at Citibank. However, Citi could
choose to adjust pricing, offer alternative deposit products to its existing
customers or seek to attract deposits from new customers, in addition to the
mitigating actions referenced above.

98
MARKET RISK
OVERVIEW Citi is planning to transition the sensitivity analysis for its IRE (see the
Market risk is the potential for losses arising from changes in the value of current IRE sensitivity impacts below), employing enhanced methodologies
Citi’s assets and liabilities resulting from changes in market variables such and changes to certain assumptions. The changes include, among other
as interest rates, foreign exchange rates, equity prices, commodity prices and things, assumptions around the projected balance sheet (being more static),
credit spreads, as well as their implied volatilities. Market risk emanates from coupled with revisions to the treatment of certain business contributions to
both Citi’s trading and non-trading portfolios. For additional information on IRE, mainly accrual positions in ICG’s Markets businesses. These changes
market risk and market risk management, see “Risk Factors” above. are planned for 2022, and will result in a higher impact to Citi’s NII and
Each business is required to establish, with approval from Citi’s market AOCI and a better reflection of the nature of the portfolios.
risk management, a market risk limit framework for identified risk factors In order to manage changes in interest rates effectively, Citi may modify
that clearly defines approved risk profiles and is within the parameters pricing on new customer loans and deposits, purchase fixed-rate securities,
of Citi’s overall risk appetite. These limits are monitored by the Risk issue debt that is either fixed or floating or enter into derivative transactions
organization, including various regional, legal entity and business Risk that have the opposite risk exposures. Citi regularly assesses the viability of
Management committees, Citi’s country and business Asset & Liability these and other strategies to reduce its interest rate risks and implements
Committees and the Citigroup Risk Management and Asset & Liability such strategies when it believes those actions are prudent.
Committees. In all cases, the businesses are ultimately responsible for the Citi manages interest rate risk as a consolidated Company-wide position.
market risks taken and for remaining within their defined limits. Citi’s client-facing businesses create interest rate-sensitive positions,
including loans and deposits, as part of their ongoing activities. Citi Treasury
MARKET RISK OF NON-TRADING PORTFOLIOS aggregates these risk positions and manages them centrally. Operating
Market risk from non-trading portfolios stems from the potential impact of within established limits, Citi Treasury makes positioning decisions and uses
changes in interest rates and foreign exchange rates on Citi’s net interest tools, such as Citi’s investment securities portfolio, company-issued debt and
income, and on Citi’s Accumulated other comprehensive income (loss) interest rate derivatives, to target the desired risk profile. Changes in Citi’s
(AOCI) from its debt securities portfolios. Market risk from non-trading interest rate risk position reflect the accumulated changes in all non-trading
portfolios also includes the potential impact of changes in foreign exchange assets and liabilities, with potentially large and offsetting impacts, as well as
rates on Citi’s capital invested in foreign currencies. in Citi Treasury’s positioning decisions.
Net Interest Income at Risk Citigroup employs additional measurements, including stress testing the
Net interest income, for interest rate exposure purposes, is the difference impact of non-linear interest rate movements on the value of the balance
between the yield earned on the non-trading portfolio assets (including sheet, and the analysis of portfolio duration and volatility, particularly as they
customer loans) and the rate paid on the liabilities (including customer relate to mortgage loans and mortgage-backed securities and the potential
deposits or company borrowings). Net interest income is affected by changes impact of the change in the spread between different market indices.
in the level of interest rates, as well as the amounts and mix of assets and Interest Rate Risk of Investment Portfolios—Impact
liabilities, and the timing of contractual and assumed repricing of assets and on AOCI
liabilities to reflect market rates. Citi also measures the potential impacts of changes in interest rates on
Citi’s principal measure of risk to net interest income is interest rate the value of its AOCI, which can in turn impact Citi’s common equity and
exposure (IRE). IRE measures the change in expected net interest income tangible common equity. This will impact Citi’s Common Equity Tier 1 and
in each currency resulting solely from unanticipated changes in forward other regulatory capital ratios. Citi’s goal is to benefit from an increase in the
interest rates. market level of interest rates, while limiting the impact of changes in AOCI
Citi’s estimated IRE incorporates various assumptions including on its regulatory capital position.
prepayment rates on loans, customer behavior and the impact of pricing AOCI at risk is managed as part of the Company-wide interest rate
decisions. For example, in rising interest rate scenarios, portions of the risk position. AOCI at risk considers potential changes in AOCI (and the
deposit portfolio may be assumed to experience rate increases that are less corresponding impact on the Common Equity Tier 1 Capital ratio) relative to
than the change in market interest rates. In declining interest rate scenarios, Citi’s capital generation capacity.
it is assumed that mortgage portfolios experience higher prepayment rates.
Citi’s estimated IRE below assumes that its businesses and/or Citi Treasury
make no additional changes in balances or positioning in response to the
unanticipated rate changes.

99
The following table sets forth the estimated impact to Citi’s net interest income, AOCI and the Common Equity Tier 1 Capital ratio (on a fully implemented
basis), each assuming an unanticipated parallel instantaneous 100 basis point (bps) increase in interest rates:

Dec. 31, Sept. 30, Dec. 31,

In millions of dollars, except as otherwise noted 2021 2021 2020
Estimated annualized impact to net interest income
U.S. dollar(1) $ 563 $ 151 $ 373
All other currencies 612 586 683
Total $ 1,175 $ 737 $ 1,056
As a percentage of average interest-earning assets 0.05% 0.03% 0.05%
Estimated initial negative impact to AOCI (after-tax)(2) $(4,609) $(4,914) $(5,645)
Estimated initial impact on Common Equity Tier 1 Capital ratio (bps) (30) (30) (34)

(1) Certain trading-oriented businesses within Citi have accrual-accounted positions that are excluded from the estimated impact to net interest income in the table, since these exposures are managed economically in
combination with mark-to-market positions. The U.S. dollar interest rate exposure associated with these businesses was $(179) million for a 100 bps instantaneous increase in interest rates as of December 31, 2021.
(2) Includes the effect of changes in interest rates on AOCI related to investment securities, cash flow hedges and pension liability adjustments.

The year-over-year increase in the estimated impact to net interest in such a scenario could potentially be offset over approximately 27 months.
income primarily reflected changes in Citi’s balance sheet composition The following table sets forth the estimated impact to Citi’s net interest
and Citi Treasury positioning. The year-over-year changes in the estimated income, AOCI and the Common Equity Tier 1 Capital ratio (on a fully
impact to AOCI and the Common Equity Tier 1 Capital ratio primarily implemented basis) under five different changes in interest rate scenarios
reflected the impact of the composition of Citi Treasury’s investment and for the U.S. dollar and Citi’s other currencies. The 100 bps downward rate
derivatives portfolio. scenarios are impacted by the low level of interest rates in several countries
In the event of a parallel instantaneous 100 bps increase in interest and the assumption that market interest rates, as well as rates paid to
rates, Citi expects that the negative impact to AOCI would be offset in depositors and charged to borrowers, do not fall below zero (i.e., the “flooring
shareholders’ equity through the expected recovery of the impact on AOCI assumption”). The rate scenarios are also impacted by convexity related to
through accretion of Citi’s investment portfolio over a period of time. As of mortgage products.
December 31, 2021, Citi expects that the $4.6 billion negative impact to AOCI

In millions of dollars, except as otherwise noted Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5
Overnight rate change (bps) 100 100 — — (100)
10-year rate change (bps) 100 — 100 (100) (100)
Estimated annualized impact to net interest income
U.S. dollar $ 563 $ 647 $ 86 $ (244) $ (770)
All other currencies 612 655 41 (41) (353)
Total $ 1,175 $ 1,302 $ 127 $ (285) $ (1,123)
Estimated initial impact to AOCI (after-tax) (1)
$(4,609) $(2,934) $(1,757) $1,373 $ 3,050
Estimated initial impact to Common Equity Tier 1 Capital ratio (bps) (30) (19) (12) 9 18

Note: Each scenario assumes that the rate change will occur instantaneously. Changes in interest rates for maturities between the overnight rate and the 10-year rate are interpolated.
(1) Includes the effect of changes in interest rates on AOCI related to investment securities, cash flow hedges and pension liability adjustments.

As shown in the table above, the magnitude of the impact to Citi’s net interest
income and AOCI is greater under Scenario 2 as compared to Scenario 3. This
is because the combination of changes to Citi’s investment portfolio, partially
offset by changes related to Citi’s pension liabilities, results in a net position
that is more sensitive to rates at shorter- and intermediate-term maturities.

100
Changes in Foreign Exchange Rates—Impacts on AOCI
and Capital
As of December 31, 2021, Citi estimates that an unanticipated parallel
instantaneous 5% appreciation of the U.S. dollar against all of the other
currencies in which Citi has invested capital could reduce Citi’s tangible
common equity (TCE) by approximately $1.5 billion, or 0.9%, as a result
of changes to Citi’s FX translation adjustment in AOCI, net of hedges. This
impact would be primarily due to changes in the value of the Mexican peso,
Euro, Singapore dollar and Indian rupee.
This impact is also before any mitigating actions Citi may take, including
ongoing management of its FX translation exposure. Specifically, as currency
movements change the value of Citi’s net investments in foreign currency-
denominated capital, these movements also change the value of Citi’s risk-
weighted assets denominated in those currencies. This, coupled with Citi’s
foreign currency hedging strategies, such as foreign currency borrowings,
foreign currency forwards and other currency hedging instruments, lessens
the impact of foreign currency movements on Citi’s Common Equity Tier 1
Capital ratio. Changes in these hedging strategies, as well as hedging costs,
divestitures and tax impacts, can further affect the actual impact of changes
in foreign exchange rates on Citi’s capital as compared to an unanticipated
parallel shock, as described above.
In addition, the effect of Citi’s ongoing management strategies with
respect to quarterly changes in foreign exchange rates, and the quarterly
impact of these changes on Citi’s TCE and Common Equity Tier 1 Capital
ratio, are shown in the table below. For additional information on the
changes in AOCI, see Note 19 to the Consolidated Financial Statements.

For the quarter ended

Dec. 31, Sept. 30, Dec. 31,
In millions of dollars, except as otherwise noted 2021 2021 2020
Change in FX spot rate(1) (0.6)% (2.7)% 5.5%
Change in TCE due to FX translation, net of hedges $ (438) $(1,042) $1,829
As a percentage of TCE (0.3)% (0.7)% 1.2%
Estimated impact to Common Equity Tier 1 Capital ratio (on a fully implemented basis)
due to changes in FX translation, net of hedges (bps) (1) (1) 2

(1) FX spot rate change is a weighted average based on Citi’s quarterly average GAAP capital exposure to foreign countries.

101
Interest Revenue/Expense and Net Interest Margin (NIM)

Average Rates-Interest Revenue, Interest Expense, and Net Interest Margin

Interest Revenue–Average Rate
Interest Expense–Average Rate
Net Interest Margin
4.50% 4.40% 4.40%
4.21%
4.07%
4.00% 3.69%
2019: 2.69%
3.50%
2.85%
3.00% 2.76% 2.72% 2.68%
2.56% 2.53% 2.57 2.48 2.41% 2.34% 2.35% 2.35%
2.50%
2.04% 2.09% 1.98%
2.00% 1.71% 2.22% 2.10% 2.06% 2.02% 1.99% 1.98%
1.97%
1.50%
2020: 2.22% 2021: 1.99%
1.43%
1.00%

0.50% 0.77%
0.58% 0.52% 0.48% 0.46% 0.46%
0.45%
0.00%
1Q’19 2Q’19 3Q’19 4Q’19 1Q’20 2Q’20 3Q’20 4Q’20 1Q’21 2Q’21 3Q’21 4Q’21

Change Change
In millions of dollars, except as otherwise noted 2021 2020 2019 2021 vs. 2020 2020 vs. 2019
Interest revenue(1) $50,667 $58,285 $76,718 (13)% (24)%
Interest expense(2) 7,981 13,338 28,382 (40) (53)
Net interest income, taxable equivalent basis(1) $42,686 $44,947 $48,336 (5)% (7)%

Interest revenue—average rate (3)

2.36% 2.88% 4.27% (52)bps (139)bps
Interest expense—average rate 0.46 0.81 1.95 (35)bps (114)bps
Net interest margin(3)(4) 1.99 2.22 2.69 (23)bps (47)bps
Interest rate benchmarks
Two-year U.S. Treasury note—average rate 0.27% 0.39% 1.97% (12)bps (158)bps
10-year U.S. Treasury note—average rate 1.45 0.89 2.14 56bps (125)bps
10-year vs. two-year spread 118bps 50bps 17bps

Note: Revenue previously referred to as net interest revenue is now referred to as net interest income. In addition, during the fourth quarter of 2021, Citi reclassified deposit insurance expenses (FDIC and other similar insurance
assessments outside of the U.S.) from Interest expense to Other operating expenses for all periods presented. Amounts reclassified for each year were $1,207 million for 2021, $1,203 million for 2020 and $781 million for 2019.
(1) Interest revenue and Net interest income include the taxable equivalent adjustments related to the tax-exempt bond portfolio and certain tax-advantaged loan programs (based on the U.S. federal statutory tax rate of
21%) of $192 million, $196 million and $208 million for 2021, 2020 and 2019, respectively.
(2) Interest expense associated with certain hybrid financial instruments, which are classified as Long-term debt and accounted for at fair value, is reported together with any changes in fair value as part of Principal
transactions in the Consolidated Statement of Income and is therefore not reflected in Interest expense in the table above.
(3) The average rate on interest revenue and net interest margin reflects the taxable equivalent gross-up adjustment. See footnote 1 above.
(4) Citi’s net interest margin (NIM) is calculated by dividing net interest income by average interest-earning assets.

102
Non-ICG Markets Net Interest Income
In millions of dollars 2021 2020 2019
Net interest income (NII)—taxable equivalent basis per above (1)
$42,686 $44,947 $48,338
ICG Markets NII—taxable equivalent basis(1) 5,733 5,786 4,562
Non-ICG Markets NII—taxable equivalent basis(1) $36,953 $39,161 $43,776

(1) Interest revenue and Net interest income include the taxable equivalent adjustments discussed in the table above.

Citi’s net interest income (NII) in the fourth quarter of 2021 was
$10.8 billion ($10.9 billion on a taxable equivalent basis), largely
unchanged versus the prior year, as a modest increase in non-ICG Markets
NII (approximately $60 million) offset an equivalent decline in ICG Markets
(fixed income markets and equity markets). Citi’s NIM was 1.98% on a
taxable equivalent basis in the fourth quarter of 2021, a decrease of one basis
point from the prior quarter, largely reflecting deposit growth.
Citi’s NII for 2021 decreased 5%, or approximately $2.3 billion, to
$42.5 billion ($42.7 billion on a taxable equivalent basis) versus the prior
year. The decrease was primarily related to a decline in non-ICG Markets NII,
largely reflecting lower interest rates and lower loan balances. In 2021, Citi’s
NIM was 1.99% on a taxable equivalent basis, compared to 2.22% in 2020,
primarily driven by lower rates and a mix-shift in balances.

103
Additional Interest Rate Details

Average Balances and Interest Rates—Assets(1)(2)(3)

Taxable Equivalent Basis

  Average volume Interest revenue % Average rate

In millions of dollars, except rates 2021 2020 2019 2021 2020 2019 2021 2020 2019
Assets
Deposits with banks(4) $ 298,319 $ 288,629 $ 188,523 $ 577 $ 928 $ 2,682 0.19% 0.32% 1.42%
Securities borrowed and purchased under
agreements to resell(5)
In U.S. offices $ 172,716 $ 149,076 $ 146,030 $ 385 $ 1,202 $ 4,752 0.22% 0.81% 3.25%
In offices outside the U.S.(4) 149,944 138,074 119,550 667 1,081 2,133 0.44 0.78 1.78
Total $ 322,660 $ 287,150 $ 265,580 $ 1,052 $ 2,283 $ 6,885 0.33% 0.80% 2.59%
Trading account assets (6)(7)

In U.S. offices $ 140,215 $ 144,130 $ 109,064 $ 2,653 $ 3,624 $ 4,099 1.89% 2.51% 3.76%
In offices outside the U.S.(4) 151,722 134,078 131,217 2,718 2,509 3,589 1.79 1.87 2.74
Total $ 291,937 $ 278,208 $ 240,281 $ 5,371 $ 6,133 $ 7,688 1.84% 2.20% 3.20%
Investments
In U.S. offices
Taxable $ 322,884 $ 265,833 $ 221,895 $ 3,547 $ 3,860 $ 5,162 1.10% 1.45% 2.33%
Exempt from U.S. income tax 12,296 14,084 15,227 437 452 577 3.55 3.21 3.79
In offices outside the U.S.(4) 152,940 139,400 117,529 3,498 3,781 4,222 2.29 2.71 3.59
Total $ 488,120 $ 419,317 $ 354,651 $ 7,482 $ 8,093 $ 9,961 1.53% 1.93% 2.81%
Loans (net of unearned income) (8)

In U.S. offices $ 386,141 $ 396,846 $ 395,792 $24,023 $26,700 $30,563 6.22% 6.73% 7.72%
In offices outside the U.S.(4) 281,895 288,379 288,319 11,509 13,569 17,266 4.08 4.71 5.99
Total $ 668,036 $ 685,225 $ 684,111 $35,532 $40,269 $47,829 5.32% 5.88% 6.99%
Other interest-earning assets(9) $ 75,876 $ 67,547 $ 64,322 $ 653 $ 579 $ 1,673 0.86% 0.86% 2.60%
Total interest-earning assets $2,144,948 $2,026,076 $1,797,468 $50,667 $58,285 $76,718 2.36% 2.88% 4.27%
Non-interest-earning assets (6)
$ 202,761 $ 200,378 $ 181,337
Total assets $2,347,709 $2,226,454 $1,978,805

(1) Interest revenue and Net interest income include the taxable equivalent adjustments primarily related to the tax-exempt bond portfolio and certain tax-advantaged loan programs (based on the U.S. federal statutory tax
rate of 21%) of $192 million, $196 million and $208 million for 2021, 2020 and 2019, respectively.
(2) Interest rates and amounts include the effects of risk management activities associated with the respective asset categories.
(3) Monthly or quarterly averages have been used by certain subsidiaries where daily averages are unavailable.
(4) Average rates reflect prevailing local interest rates, including inflationary effects and monetary corrections in certain countries.
(5) Average volumes of securities borrowed or purchased under agreements to resell are reported net pursuant to ASC 210-20-45. However, Interest revenue excludes the impact of ASC 210-20-45.
(6) The fair value carrying amounts of derivative contracts are reported net, pursuant to ASC 815-10-45, in Non-interest-earning assets and Other non-interest-bearing liabilities.
(7) Interest expense on Trading account liabilities of ICG is reported as a reduction of Interest revenue. Interest revenue and Interest expense on cash collateral positions are reported in interest on Trading account assets
and Trading account liabilities, respectively.
(8) Includes cash-basis loans.
(9) Includes Brokerage receivables.

104
Average Balances and Interest Rates—Liabilities and Equity, and Net Interest Income(1)(2)(3)
Taxable Equivalent Basis

Average volume Interest expense % Average rate

In millions of dollars, except rates 2021 2020 2019 2021 2020 2019 2021 2020 2019
Liabilities
Deposits
In U.S. offices(4) $ 532,466 $ 485,848 $ 388,948 $ 1,084 $ 2,524 $ 5,873 0.20% 0.52% 1.51%
In offices outside the U.S.(5) 557,207 541,301 487,318 1,812 2,810 5,979 0.33 0.52 1.23
Total $1,089,673 $1,027,149 $ 876,266 $ 2,896 $ 5,334 $11,852 0.27% 0.52% 1.35%
Securities loaned and sold
under agreements to repurchase(6)
In U.S. offices $ 136,955 $ 137,348 $ 112,876 $ 676 $ 1,292 $ 4,194 0.49% 0.94% 3.72%
In offices outside the U.S.(5) 93,744 79,426 77,283 336 785 2,069 0.36 0.99 2.68
Total $ 230,699 $ 216,774 $ 190,159 $ 1,012 $ 2,077 $ 6,263 0.44% 0.96% 3.29%
Trading account liabilities(7)(8)
In U.S. offices $ 47,871 $ 38,308 $ 37,099 $ 109 $ 283 $ 818 0.23% 0.74% 2.20%
In offices outside the U.S.(5) 67,739 52,051 51,817 373 345 490 0.55 0.66 0.95
Total $ 115,610 $ 90,359 $ 88,916 $ 482 $ 628 $ 1,308 0.42% 0.70% 1.47%
Short-term borrowings and
other interest-bearing liabilities(9)
In U.S. offices $ 69,683 $ 82,363 $ 78,230 $ (27) $ 493 $ 2,138 (0.04)% 0.60% 2.73%
In offices outside the U.S.(5) 26,133 20,053 20,575 148 137 327 0.57 0.68 1.59
Total $ 95,816 $ 102,416 $ 98,805 $ 121 $ 630 $ 2,465 0.13% 0.62% 2.49%
Long-term debt(10)
In U.S. offices $ 186,522 $ 213,809 $ 193,972 $ 3,384 $ 4,656 $ 6,398 1.81% 2.18% 3.30%
In offices outside the U.S.(5) 4,282 3,918 4,803 86 13 96 2.01 0.33 2.00
Total $ 190,804 $ 217,727 $ 198,775 $ 3,470 $ 4,669 $ 6,494 1.82% 2.14% 3.27%
Total interest-bearing liabilities $1,722,602 $1,654,425 $1,452,921 $ 7,981 $13,338 $28,382 0.46% 0.81% 1.95%
Demand deposits in U.S. offices $ 98,414 $ 30,876 $ 27,737
Other non-interest-bearing liabilities(7) 324,724 346,736 301,756
Total liabilities $2,145,740 $2,032,037 $1,782,414
Citigroup stockholders’ equity $ 201,360 $ 193,769 $ 195,685
Noncontrolling interests 609 648 706
Total equity $ 201,969 $ 194,417 $ 196,391
Total liabilities and stockholders’ equity $2,347,709 $2,226,454 $1,978,805
Net interest income as a percentage of average
interest-earning assets(11)
In U.S. offices $1,244,182 $1,187,077 $1,017,021 $26,404 $27,520 $28,898 2.12% 2.32% 2.84%
In offices outside the U.S.(6) 900,766 838,999 780,447 16,282 17,427 19,440 1.81 2.08 2.49
Total $2,144,948 $2,026,076 $1,797,468 $42,686 $44,947 $48,338 1.99% 2.22% 2.69%

(1) Interest revenue and Net interest income include the taxable equivalent adjustments discussed in the table above.
(2) Interest rates and amounts include the effects of risk management activities associated with the respective liability categories.
(3) Monthly or quarterly averages have been used by certain subsidiaries where daily averages are unavailable.
(4) Consists of other time deposits and savings deposits. Savings deposits are made up of insured money market accounts, NOW accounts and other savings deposits. The interest expense on savings deposits includes
FDIC deposit insurance assessments.
(5) Average rates reflect prevailing local interest rates, including inflationary effects and monetary corrections in certain countries.
(6) Average volumes of securities sold under agreements to repurchase are reported net pursuant to ASC 210-20-45. However, Interest expense excludes the impact of ASC 210-20-45.
(7) The fair value carrying amounts of derivative contracts are reported net, pursuant to ASC 815-10-45, in Non-interest-earning assets and Other non-interest-bearing liabilities.
(8) Interest expense on Trading account liabilities of ICG is reported as a reduction of Interest revenue. Interest revenue and Interest expense on cash collateral positions are reported in interest on Trading account assets
and Trading account liabilities, respectively.
(9) Includes Brokerage payables.
(10) Excludes hybrid financial instruments and beneficial interests in consolidated VIEs that are classified as Long-term debt, as the changes in fair value for these obligations are recorded in Principal transactions.
(11) Includes allocations for capital and funding costs based on the location of the asset.

105
Analysis of Changes in Interest Revenue(1)(2)(3)

  2021 vs. 2020 2020 vs. 2019

Increase (decrease) Increase (decrease)
  due to change in: due to change in:
Average Average Net Average Average Net
In millions of dollars volume rate change volume rate change
Deposits with banks(3) $ 30 $ (381) $ (351) $ 976 $ (2,730) $ (1,754)
Securities borrowed and purchased under agreements to resell
In U.S. offices $ 166 $ (983) $ (817) $ 97 $ (3,647) $ (3,550)
In offices outside the U.S.(3) 86 (500) (414) 290 (1,342) (1,052)
Total $ 252 $(1,483) $(1,231) $ 387 $ (4,989) $ (4,602)
Trading account assets(4)
In U.S. offices $ (96) $ (875) $ (971) $ 1,103 $ (1,578) $ (475)
In offices outside the U.S.(3) 320 (111) 209 77 (1,157) (1,080)
Total $ 224 $ (986) $ (762) $ 1,180 $ (2,735) $ (1,555)
Investments (1)

In U.S. offices $ 761 $(1,089) $ (328) $ 911 $ (2,338) $ (1,427)

In offices outside the U.S.(3) 345 (628) (283) 703 (1,144) (441)
Total $ 1,106 $(1,717) $ (611) $ 1,614 $ (3,482) $ (1,868)
Loans (net of unearned income)(5)
In U.S. offices $ (706) $(1,971) $(2,677) $ 81 $ (3,945) $ (3,864)
In offices outside the U.S.(3) (299) (1,761) (2,060) 4 (3,700) (3,696)
Total $(1,005) $(3,732) $(4,737) $ 85 $ (7,645) $ (7,560)
Other interest-earning assets (6)
$ 72 $ 2 $ 74 $ 80 $ (1,174) $ (1,094)
Total interest revenue $ 679 $(8,297) $(7,618) $ 4,322 $(22,755) $(18,433)

(1) Interest revenue and Net interest income include the taxable equivalent adjustments discussed in the table above.
(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) Changes in average rates reflect changes in prevailing local interest rates, including inflationary effects and monetary corrections in certain countries.
(4) Interest expense on Trading account liabilities of ICG is reported as a reduction of Interest revenue. Interest revenue and Interest expense on cash collateral positions are reported in interest on Trading account assets
and Trading account liabilities, respectively.
(5) Includes cash-basis loans.
(6) Includes Brokerage receivables.

106
Analysis of Changes in Interest Expense and Net Interest Income(1)(2)(3)

2021 vs. 2020 2020 vs. 2019

Increase (decrease) Increase (decrease)
due to change in: due to change in:
Average Average Net Average Average Net
In millions of dollars volume rate change volume rate change
Deposits
In U.S. offices $ 222 $(1,661) $(1,439) $1,199 $ (4,548) $ (3,349)
In offices outside the U.S.(3) 80 (1,078) (998) 601 (3,770) (3,169)
Total $ 302 $(2,739) $(2,437) $1,800 $ (8,318) $ (6,518)
Securities loaned and sold under agreements to repurchase
In U.S. offices $ (4) $ (612) $ (616) $ 757 $ (3,659) $ (2,902)
In offices outside the U.S.(3) 122 (571) (449) 56 (1,340) (1,284)
Total $ 118 $(1,183) $(1,065) $ 813 $ (4,999) $ (4,186)
Trading account liabilities (4)

In U.S. offices $ 58 $ (232) $ (174) $ 26 $ (561) $ (535)

In offices outside the U.S.(3) 93 (65) 28 2 (147) (145)
Total $ 151 $ (297) $ (146) $ 28 $ (708) $ (680)
Short-term borrowings and other interest-bearing liabilities(5)
In U.S. offices $ (66) $ (454) $ (520) $ 107 $ (1,752) $ (1,645)
In offices outside the U.S.(3) 37 (26) 11 (8) (182) (190)
Total $ (29) $ (480) $ (509) $ 99 $ (1,934) $ (1,835)
Long-term debt
In U.S. offices $(551) $ (721) $(1,272) $ 603 $ (2,346) $ (1,743)
In offices outside the U.S.(3) 1 71 72 (15) (67) (82)
Total $(550) $ (650) $(1,200) $ 588 $ (2,413) $ (1,825)
Total interest expense $ (8) $(5,349) $(5,357) $3,328 $(18,372) $(15,044)
Net interest income $ 687 $(2,948) $(2,261) $ 993 $ (4,382) $ (3,389)

(1) Interest revenue and Net interest income include the taxable equivalent adjustments discussed in the table above.
(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) Changes in average rates reflect changes in prevailing local interest rates, including inflationary effects and monetary corrections in certain countries.
(4) Interest expense on Trading account liabilities of ICG is reported as a reduction of Interest revenue. Interest revenue and Interest expense on cash collateral positions are reported in interest on Trading account assets
and Trading account liabilities, respectively.
(5) Includes Brokerage payables.

107
Market Risk of Trading Portfolios Each trading portfolio across Citi’s businesses has its own market risk
Trading portfolios include positions resulting from market-making activities, limit framework encompassing these measures and other controls, including
hedges of certain available-for-sale (AFS) debt securities, the CVA relating trading mandates, new product approval, permitted product lists and pre-
to derivative counterparties and all associated hedges, fair value option trade approval for larger, more complex and less liquid transactions.
loans and hedges of the loan portfolio within capital markets origination The following chart of total daily trading-related revenue (loss) captures
within ICG. trading volatility and shows the number of days in which revenues for Citi’s
The market risk of Citi’s trading portfolios is monitored using a trading businesses fell within particular ranges. Trading-related revenue
combination of quantitative and qualitative measures, including, but not includes trading, net interest and other revenue associated with Citi’s
limited to: trading businesses. It excludes DVA, FVA and CVA adjustments incurred due
to changes in the credit quality of counterparties, as well as any associated
• factor sensitivities; hedges of that CVA. In addition, it excludes fees and other revenue associated
• value at risk (VAR); and with capital markets origination activities. Trading-related revenues are
• stress testing. driven by both customer flows and the changes in valuation of the trading
inventory. As shown in the chart below, positive trading-related revenue was
achieved for 95.8% of the trading days in 2021.

Daily Trading-Related Revenue (Loss)(1)—Twelve Months Ended December 31, 2021

In millions of dollars

30
Number of Days

20

10

0
-100 to -40

-40 to -30

-30 to -20

-20 to -10

-10 to 0

0 to 10

10 to 20

20 to 30

30 to 40

40 to 50

50 to 60

60 to 70

70 to 80

80 to 90

90 to 100

100 to 110

110 to 120

120 to 130

130 to 140

140 to 150

150 to 160

160+
(1) Reflects the effects of asymmetrical accounting for economic hedges of certain AFS debt securities. Specifically, the change in the fair value of hedging derivatives is included in trading-related revenue, while the
offsetting change in the fair value of hedged AFS debt securities is included in AOCI and not reflected above.

108
Factor Sensitivities classes/risk types (such as interest rate, credit spread, foreign exchange,
Factor sensitivities are expressed as the change in the value of a position for equity and commodity risks). Citi’s VAR includes positions that are measured
a defined change in a market risk factor, such as a change in the value of at fair value; it does not include investment securities classified as AFS or
a U.S. Treasury Bond for a one-basis-point change in interest rates. Citi’s HTM. For information on these securities, see Note 13 to the Consolidated
Global Market Risk function, within the Independent Risk Management Financial Statements.
organization, works to ensure that factor sensitivities are calculated, Citi believes its VAR model is conservatively calibrated to incorporate
monitored and limited for all material risks taken in the trading portfolios. fat-tail scaling and the greater of short-term (approximately the most
recent month) and long-term (three years) market volatility. The Monte
Value at Risk (VAR) Carlo simulation involves approximately 450,000 market factors, making
VAR estimates, at a 99% confidence level, the potential decline in the value of use of approximately 350,000 time series, with sensitivities updated daily,
a position or a portfolio under normal market conditions assuming a one- volatility parameters updated intra-monthly and correlation parameters
day holding period. VAR statistics, which are based on historical data, can be updated monthly. The conservative features of the VAR calibration contribute
materially different across firms due to differences in portfolio composition, an approximate 33% add-on to what would be a VAR estimated under the
differences in VAR methodologies and differences in model parameters. As a assumption of stable and perfectly, normally distributed markets.
result, Citi believes VAR statistics can be used more effectively as indicators As set forth in the table below, Citi’s average trading VAR decreased
of trends in risk-taking within a firm, rather than as a basis for inferring $5 million from 2020 to 2021, mainly due to a reduction of market volatility,
differences in risk-taking across firms. given improved macroeconomic conditions, compared to 2020. Citi’s average
Citi uses a single, independently approved Monte Carlo simulation VAR trading and credit portfolio VAR decreased $24 million from 2020 to 2021
model (see “VAR Model Review and Validation” below), which has been due to VAR volatility recalibration.
designed to capture material risk sensitivities (such as first- and second-
order sensitivities of positions to changes in market prices) of various asset

Year-end and Average Trading VAR and Trading and Credit Portfolio VAR

December 31, 2021 December 31, 2020

In millions of dollars 2021 Average 2020 Average
Interest rate $ 50 $ 65  $ 72  $ 66 
Credit spread 59 71 70  86 
Covariance adjustment(1) (35) (42) (51) (48)
Fully diversified interest rate and credit spread(2) $ 74 $ 94 $ 91  $104 
Foreign exchange 36 42 40  26 
Equity 29 33 31  36 
Commodity 28 34 17  22 
Covariance adjustment(1) (88) (102) (85) (82)
Total trading VAR—all market risk factors, including general and specific risk (excluding credit portfolios)(2) $ 79 $ 101  $ 94  $106 
Specific risk-only component (3)
$ 3 $ 1 $ (1) $ (2)
Total trading VAR—general market risk factors only (excluding credit portfolios) $ 76 $ 100 $ 95  $108 
Incremental impact of the credit portfolio(4) $ 45 $ 30 $ 29  $ 49 
Total trading and credit portfolio VAR $124 $ 131 $123  $155 

(1) Covariance adjustment (also known as diversification benefit) equals the difference between the total VAR and the sum of the VARs tied to each risk type. The benefit reflects the fact that the risks within individual and
across risk types are not perfectly correlated and, consequently, the total VAR on a given day will be lower than the sum of the VARs relating to each risk type. The determination of the primary drivers of changes to the
covariance adjustment is made by an examination of the impact of both model parameter and position changes.
(2) The total trading VAR includes mark-to-market and certain fair value option trading positions in ICG, with the exception of hedges to the loan portfolio, fair value option loans and all CVA exposures. Available-for-sale
and accrual exposures are not included.
(3) The specific risk-only component represents the level of equity and fixed income issuer-specific risk embedded in VAR.
(4) The credit portfolio is composed of mark-to-market positions associated with non-trading business units including Citi Treasury, the CVA relating to derivative counterparties and all associated CVA hedges. FVA and DVA
are not included. The credit portfolio also includes hedges to the loan portfolio, fair value option loans and hedges to the leveraged finance pipeline within capital markets origination in ICG.

109
The table below provides the range of market factor VARs associated with Citi’s total trading VAR, inclusive of specific risk:

2021 2020
In millions of dollars Low High Low High
Interest rate $ 47 $ 96 $28  $137 
Credit spread 54 96 36  171 
Fully diversified interest rate and credit spread $ 74 $123 $44  $223 
Foreign exchange 33 49 14  40 
Equity 21 50 13  141 
Commodity 19 55 12  64 
Total trading $ 79 $130 $47  $245 
Total trading and credit portfolio 108 166 58  424 

Note: No covariance adjustment can be inferred from the above table as the high and low for each market factor will be from different close-of-business dates.

The following table provides the VAR for ICG, excluding the CVA relating to Regulatory VAR, which is calculated in accordance with Basel III, differs
derivative counterparties, hedges of CVA, fair value option loans and hedges from Risk Management VAR due to the fact that certain positions included
to the loan portfolio: in Risk Management VAR are not eligible for market risk treatment in
Regulatory VAR. The composition of Risk Management VAR is discussed
In millions of dollars Dec. 31, 2021 under “Value at Risk” above. The applicability of the VAR model for positions
Total—all market risk factors, eligible for market risk treatment under U.S. regulatory capital rules is
including general and specific risk $ 81 periodically reviewed and approved by Citi’s U.S. banking regulators.
Average—during year $103 In accordance with Basel III, Regulatory VAR includes all trading
High—during year 134 book-covered positions and all foreign exchange and commodity exposures.
Low—during year 81 Pursuant to Basel III, Regulatory VAR excludes positions that fail to meet
the intent and ability to trade requirements and are therefore classified as
VAR Model Review and Validation non-trading book and categories of exposures that are specifically excluded
Generally, Citi’s VAR review and model validation process entails reviewing as covered positions. Regulatory VAR excludes CVA on derivative instruments
the model framework, major assumptions and implementation of the and DVA on Citi’s own fair value option liabilities. CVA hedges are excluded
mathematical algorithm. In addition, product specific back-testing from Regulatory VAR and included in credit risk-weighted assets as computed
on portfolios is periodically completed as part of the ongoing model under the Advanced Approaches for determining risk-weighted assets.
performance monitoring process and reviewed with Citi’s U.S. banking Regulatory VAR Back-Testing
regulators. Furthermore, Regulatory VAR back-testing (as described below) In accordance with Basel III, Citi is required to perform back-testing to
is performed against buy-and-hold profit and loss on a monthly basis evaluate the effectiveness of its Regulatory VAR model. Regulatory VAR
for multiple sub-portfolios across the organization (trading desk level, back-testing is the process in which the daily one-day VAR, at a 99%
ICG business segment and Citigroup) and the results are shared with U.S. confidence interval, is compared to the buy-and-hold profit and loss
banking regulators. (i.e., the profit and loss impact if the portfolio is held constant at the end
Material VAR model and assumption changes must be independently of the day and re-priced the following day). Buy-and-hold profit and loss
validated within Citi’s Independent Risk Management organization. All represents the daily mark-to-market profit and loss attributable to price
model changes, including those for the VAR model, are validated by the movements in covered positions from the close of the previous business
model validation group within Citi’s Model Risk Management. In the event day. Buy-and-hold profit and loss excludes realized trading revenue, net
of significant model changes, parallel model runs are undertaken prior to interest, fees and commissions, intra-day trading profit and loss and changes
implementation. In addition, significant model and assumption changes are in reserves.
subject to the periodic reviews and approval by Citi’s U.S. banking regulators. Based on a 99% confidence level, Citi would expect two to three days in
Citi uses the same independently validated VAR model for both Regulatory any one year where buy-and-hold losses exceed the Regulatory VAR. Given
VAR and Risk Management VAR (i.e., total trading and total trading and the conservative calibration of Citi’s VAR model (as a result of taking the
credit portfolios VARs) and, as such, the model review and validation process greater of short- and long-term volatilities and fat-tail scaling of volatilities),
for both purposes is as described above. Citi would expect fewer exceptions under normal and stable market
conditions. Periods of unstable market conditions could increase the number
of back-testing exceptions.

110
 The following graph shows the daily buy-and-hold profit and loss
associated with Citi’s covered positions compared to Citi’s one-day Regulatory
VAR during 2021. As of December 31, 2021, one back-testing exception was
observed at the Citigroup level.
The difference between the 54.4% of days with buy-and-hold gains for
Regulatory VAR back-testing and the 95.8% of days with trading, net interest
and other revenue associated with Citi’s trading businesses, shown in the
histogram of daily trading-related revenue below, reflects, among other
things, that a significant portion of Citi’s trading-related revenue is not
generated from daily price movements on these positions and exposures, as
well as differences in the portfolio composition of Regulatory VAR and Risk
Management VAR.

Regulatory Trading VAR and Associated Buy-and-Hold Profit and Loss(1)—12 Months Ended December 31, 2021
In millions of dollars

Total Regulatory VaR Buy and Hold P&L ($MM)

Regulatory VaR T-1 ($MM)

One-Day 99% Regulatory VAR and Associated Buy-and-Hold Profit and Loss ($MM)

250
200
150
100
50
0
-50
-100
-150
-200
-250
-300
Jan ’21 Feb ’21 Mar ’21 Apr ’21 May ’21 Jun ’21 Jul ’21 Aug ’21 Sep ’21 Oct ’21 Nov ’21 Dec ’21

(1) Buy-and-hold profit and loss, as defined by the banking regulators under Basel III, represents the daily mark-to-market revenue movement attributable to the trading position from the close of the previous business
day. Buy-and-hold profit and loss excludes realized trading revenue and net interest intra-day trading profit and loss on new and terminated trades, as well as changes in reserves. Therefore, it is not comparable to the
trading-related revenue presented in the chart of daily trading-related revenue above.

111
Stress Testing
Citi performs market risk stress testing on a regular basis to estimate
the impact of extreme market movements. It is performed on individual
positions and trading portfolios, as well as in aggregate, inclusive of multiple
trading portfolios. Citi’s market risk management, after consultations with
the businesses, develops both systemic and specific stress scenarios, reviews
the output of periodic stress testing exercises and uses the information to
assess the ongoing appropriateness of exposure levels and limits. Citi uses
two complementary approaches to market risk stress testing across all major
risk factors (i.e., equity, foreign exchange, commodity, interest rate and
credit spreads): top-down systemic stresses and bottom-up business-specific
stresses. Systemic stresses are designed to quantify the potential impact of
extreme market movements on an institution-wide basis, and are constructed
using both historical periods of market stress and projections of adverse
economic scenarios. Business-specific stresses are designed to probe the risks
of particular portfolios and market segments, especially those risks that are
not fully captured in VAR and systemic stresses.
The systemic stress scenarios and business-specific stress scenarios at
Citi are used in several reports reviewed by senior management and also to
calculate internal risk capital for trading market risk. In general, changes
in market values are defined over a one-year horizon. For the most liquid
positions and market factors, changes in market values are defined over a
shorter two-month horizon. The limited set of positions and market factors
whose market value changes are defined over a two-month horizon are those
that in management’s judgment have historically remained very liquid
during financial crises, even as the trading liquidity of most other positions
and market factors materially declined.

112
OPERATIONAL RISK
Overview Citi has a governance structure for the oversight of operational risk
Operational risk is the risk of loss resulting from inadequate or failed internal exposures through Business Risk and Controls Committees (BRCCs), which
processes, people and systems or from external events. This includes legal include a Citigroup BRCC as well as business, functions, regional and
risk, which is the risk of loss (including litigation costs, settlements, and country BRCCs. BRCCs are chaired by the individuals in the first line of
regulatory fines) resulting from the failure of Citi to comply with laws, defense and provide escalation channels for senior management to review
regulations, prudent ethical standards, and contractual obligations in any operational risk exposures including breaches of operational risk appetite,
aspect of its businesses, but excludes strategic and reputation risks. Citi also key indicators, operational risk events, and control issues. Membership
recognizes the impact of operational risk on the reputation risk associated includes senior business and functions leadership as well as members of the
with Citi’s business activities. second line of defense.
Operational risk is inherent in Citi’s global business activities, as well In addition, Independent Risk Management, including the Operational
as related support functions, and can result in losses. Citi maintains a Risk Management group, works proactively with Citi’s businesses and
comprehensive Citi-wide risk taxonomy to classify operational risks that functions to drive a strong and embedded operational risk management
it faces using standardized definitions across Citi’s Operational Risk culture and framework across Citi. The Operational Risk Management
Management Framework (see discussion below). This taxonomy also group actively challenges business and functions implementation of the
supports regulatory requirements and expectations inclusive of those related Operational Risk Management Framework requirements and the quality of
to U.S. Basel III, Comprehensive Capital Analysis and Review (CCAR), operational risk management practices and outcomes.
Heightened Standards for Large Financial Institutions and Dodd Frank Information about businesses’ key operational risks, historical operational
Annual Stress Testing (DFAST). risk losses and the control environment is reported by each major business
Citi manages operational risk consistent with the overall framework segment and functional area. Citi’s operational risk profile and related
described in “Managing Global Risk—Overview” above. Citi’s goal is to information is summarized and reported to senior management, as well as
keep operational risk at appropriate levels relative to the characteristics of its to the Audit and Risk Committees of Citi’s Board of Directors by the Head of
businesses, the markets in which it operates, its capital and liquidity and the Operational Risk Management.
competitive, economic and regulatory environment. This includes effectively Operational risk is measured through Operational Risk Capital and
managing operational risk and maintaining or reducing operational risk Operational Risk Regulatory Capital for the Advanced Approaches under
exposures within Citi’s operational risk appetite. Basel III. Projected operational risk losses under stress scenarios are
Citi’s Independent Operational Risk Management group has established estimated as a required part of the FRB’s CCAR process.
a global-Operational Risk Management Framework with policies and For additional information on Citi’s operational risks, see “Risk
practices for identification, measurement, monitoring, managing and Factors—Operational Risk” above.
reporting operational risks and the overall operating effectiveness of the
internal control environment. As part of this framework, Citi has defined its Cybersecurity Risk
operational risk appetite and established a manager’s control assessment Overview
(MCA) process for self-identification of significant operational risks, Cybersecurity risk is the business risk associated with the threat posed by a
assessment of the performance of key controls and mitigation of residual risk cyber attack, cyber breach or the failure to protect Citi’s most vital business
above acceptable levels. information assets or operations, resulting in a financial or reputational loss
Each major business segment must implement operational risk processes (for additional information, see the operational processes and systems and
consistent with the requirements of this framework. This includes: cybersecurity risk factors in “Risk Factors—Operational Risks” above). With
an evolving threat landscape, ever-increasing sophistication of threat actor
• understanding the operational risks they are exposed to; tactics, techniques and procedures, and use of new technologies to conduct
• designing controls to mitigate identified risks; financial transactions, Citi and its clients, customers and third parties are
• establishing key indicators; and will continue to be at risk from cyber attacks and information security
• monitoring and reporting whether the operational risk exposures are in or incidents. Citi recognizes the significance of these risks and, therefore,
out of their operational risk appetite; leverages an intelligence-led strategy to protect against, detect and respond
• having processes in place to bring operational risk exposures within to, and recover from cyber attacks. Further, Citi actively participates in
acceptable levels; financial industry, government and cross-sector knowledge-sharing groups to
• periodically estimate and aggregate the operational risks they are enhance individual and collective cybersecurity preparedness and resilience.
exposed to; and
• ensuring that sufficient resources are available to actively improve the
operational risk environment and mitigate emerging risks.
Citi considers operational risks that result from the introduction of new
or changes to existing products, or result from significant changes in its
organizational structures, systems, processes and personnel.

113
Risk Management when needed, as well as guidance to management as appropriate. In 2021,
Citi’s technology and cybersecurity risk management program is built on the Board of Directors underwent a cyber incident tabletop exercise. Also
three lines of defense. Citi’s first line of defense under the Office of the Chief in 2021, the Board’s Risk Management Committee approved a standalone
Information Security Officer provides frontline business, operational and Cybersecurity Risk Appetite Statement against which Citi’s performance is
technical controls and capabilities to protect against cybersecurity risks, and measured quarterly. For additional information on the Board’s oversight of
to respond to cyber incidents and data breaches. Citi manages these threats cybersecurity risk management, see Citi’s 2022 proxy statement to be filed
through state-of-the-art Fusion Centers, which serve as central commands with the SEC in March 2022.
for monitoring and coordinating responses to cyber threats. The enterprise
information security team is responsible for infrastructure defense and COMPLIANCE RISK
security controls, performing vulnerability assessments and third-party Compliance risk is the risk to current or projected financial condition and
information security assessments, employee awareness and training resilience arising from violations of laws, rules, or regulations, or from
programs and security incident management. In each case the team works non-conformance with prescribed practices, internal policies and procedures
in coordination with a network of information security officers who are or ethical standards. Compliance risk exposes Citi to fines, civil money
embedded within the businesses and functions globally. penalties, payment of damages and the voiding of contracts. Compliance
Citi’s Operational Risk Management-Technology and Cyber (ORM-T/C) risk can result in diminished reputation, harm to Citi’s customers, limited
and Independent Compliance Risk Management-Technology and business opportunities and lessened expansion potential. It encompasses
Information Security (ICRM-T) groups serve as the second line of defense, the risk of noncompliance with all laws and regulations, as well as prudent
and actively evaluate, anticipate and challenge Citi’s risk mitigation ethical standards and some contractual obligations. It could also include
practices and capabilities. Citi seeks to proactively identify and remediate exposure to litigation (known as legal risk) from all aspects of traditional
technology and cybersecurity risks before they materialize as incidents and non-traditional banking.
that negatively affect business operations. Accordingly, the ORM-T/C team Citi seeks to operate with integrity, maintain strong ethical standards
independently challenges and monitors capabilities in accordance with Citi’s and adhere to applicable policies and regulatory and legal requirements.
defined Technology and Cyber Risk Appetite statements. To address evolving Citi must maintain and execute a proactive Compliance Risk Management
cybersecurity risks and corresponding regulations, ORM-T/C and ICRM-T (CRM) Policy that is designed to manage compliance risk effectively
teams collectively also monitor cyber legal and regulatory requirements, across Citi, with a view to fundamentally strengthen the compliance risk
identify and define emerging risks, execute strategic cyber threat assessments, management culture across the lines of defense taking into account Citi’s
perform new products and initiative reviews, perform data management risk governance framework and regulatory requirements. Independent
risk oversight and conduct cyber risk assurance reviews (inclusive of Compliance Risk Management’s (ICRM) primary objectives are to:
third-party assessments). In addition, ORM-T/C employs tools and oversees • Drive and embed a culture of compliance and control throughout Citi;
and challenges metrics that are both tailored to cybersecurity and technology • Maintain and oversee an integrated CRM Policy and Compliance Risk
and aligned with Citi’s overall operational risk management framework to Framework that facilitates enterprise-wide compliance with local,
effectively track, identify and manage risk. national or cross-border laws, rules or regulations, Citi’s internal policies,
Internal audit serves as the third line of defense and independently standards and procedures and relevant standards of conduct;
provides assurance on how effectively the organization as a whole manages
cybersecurity risk. Citi also has multiple senior committees such as the
• Assess compliance risks and issues across product lines, functions and
geographies, supported by globally consistent systems and compliance risk
Information Security Risk Committee (ISRC), which governs enterprise-level
management processes; and
risk tolerance inclusive of cybersecurity risk.
• Provide compliance risk data aggregation and reporting capabilities.
Board Oversight
To anticipate, control and mitigate compliance risk, Citi has
Citi’s Board of Directors provides oversight of management’s efforts to
established the CRM Policy to achieve standardization and centralization
mitigate cybersecurity risk and respond to cyber incidents. The Board receives
of methodologies and processes, and to enable more consistent and
regular reports on cybersecurity and engages in discussions throughout the
comprehensive execution of compliance risk management.
year with management and subject-matter experts on the effectiveness of
Citi has a commitment, as well as an obligation, to identify, assess and
Citi’s overall cybersecurity program. The Board also obtains updates on Citi’s
mitigate compliance risks associated with its businesses and functions. ICRM
inherent cybersecurity risks and Citi’s road map and progress for addressing
is responsible for oversight of Citi’s CRM Policy, while all businesses and
these risks.
global control functions are responsible for managing their compliance risks
Moreover, Citi’s Board and its committee members receive
and operating within the Compliance Risk Appetite.
contemporaneous reporting on significant cyber events including response,
legal obligations, and outreach and notification to regulators, and customers

114
 Citi carries out its objectives and fulfills its responsibilities through the The responsibility for enhancing and protecting Citi’s reputation is shared
Compliance Risk Framework, which is composed of the following integrated by all colleagues, who are guided by Citi’s Code of Conduct. Colleagues are
key activities, to holistically manage compliance risk: expected to exercise sound judgment and common sense in decisions and
actions. They are also expected to promptly escalate all issues that present
• Management of Citi’s compliance with laws, rules and regulations potential reputation risk in line with policy.
by identifying and analyzing changes, assessing the impact, and
implementing appropriate policies, processes and controls; STRATEGIC RISK
• Developing and providing compliance training to ensure colleagues are As discussed above, strategic risk is the risk of a sustained impact (not
aware of and understand the key laws, rules and regulations; episodic impact) to Citi’s core strategic objectives as measured by impacts
• Monitoring the Compliance Risk Appetite, which is articulated through on anticipated earnings, market capitalization, or capital, arising from the
qualitative compliance risk statements describing Citi’s appetite for external factors affecting the Company’s operating environment; as well as
certain types of risk and quantitative measures to monitor the Company’s the risks associated with defining the strategy and executing the strategy,
compliance risk exposure; which are identified, measured and managed as part of the Strategic Risk
• Monitoring and testing of compliance risks and controls in assessing Framework at the Enterprise Level.
conformance with laws, rules, regulations and internal policies; and In this context, external factors affecting Citi’s operating environment
are the economic environment, geopolitical/political landscape, industry/
• Issue identification, escalation and remediation to drive accountability, competitive landscape, societal trends, customer/client behavior, regulatory/
including measurement and reporting of compliance risk metrics against
legislative environment and trends related to investors/shareholders.
established thresholds in support of the CRM Policy and Compliance
Citi’s Executive Management Team is responsible for the development and
Risk Appetite.
execution of Citi’s strategy. This strategy is translated into forward-looking
As discussed above, Citi is working to address the FRB and OCC consent plans (collectively Citi’s Strategic Plan) that are then cascaded across the
orders, which include improvements to Citi’s Compliance Risk Framework organization. Citi’s Strategic Plan is presented to the board on an annual
and its Enterprise-wide application (for additional information regarding the basis and is aligned with Risk Appetite thresholds and includes Top Risk
consent orders, see “Citi’s Consent Order Compliance” above). identification as required by internal frameworks. It is also aligned with limit
requirements for capital allocation. Governance and oversight of strategic
REPUTATION RISK risk is facilitated by internal committees on a group-wide basis as well as
Citi’s reputation is a vital asset in building trust with its stakeholders and strategic committees at the ICG, GCB and regional levels.
Citi is diligent in enhancing and protecting its reputation with its colleagues, Citi works to ensure that strategic risks are adequately considered and
customers, investors and regulators. To support this, Citi has developed a addressed across its various risk management activities, and that strategic
reputation risk framework. Under this framework, Citigroup and Citibank risks are assessed in the context of Citi’s risk appetite. Citi conducts a
have implemented a risk appetite statement and related key indicators to top-down, bottom-up risk identification process to identify risks, including
monitor corporate activities and operations relative to our risk appetite. strategic risks. Business segments undertake a quarterly risk identification
The framework also requires that business segments and regions escalate process to systematically identify and document all material risks faced by
significant reputation risks that require review or mitigation through a Citi. Independent Risk Management oversees the Risk Identification process
Reputation Risk Committee or equivalent. through regular reviews and coordinates identification and monitoring of
The Reputation Risk Committees, which are composed of Citi’s most Top Risks. Independent Risk Management also manages strategic risk by
senior executives, govern the process by which material reputation risks are monitoring risk appetite thresholds in conjunction with various strategic risk
identified, monitored, reported, managed, and escalated. The Reputation committees, which are part of the governance structure that Citi has in place
Risk Committees determine the appropriate actions to be taken in line to manage its strategic risks.
with risk appetite and regulatory expectations, while promoting a culture For additional information on Citi’s strategic risks, see “Risk Factors—
of risk awareness and high standards of integrity and ethical behavior Strategic Risks” above.
across the Company, consistent with Citi’s mission and value proposition.
The Reputation Risk Committees in the business segments and regions
are part of the governance infrastructure that Citi has in place to review
the reputation risk posed by business activities, sales practices, product
design, or perceived conflicts of interest. These committees may also raise
potential reputation risks for due consideration by the Reputation Risk
Committee at the corporate level. The Citigroup Reputation Risk Committee
may escalate reputation risks to the Nomination, Governance and Public
Affairs Committee or other appropriate committee of the Citigroup Board
of Directors.

115
OTHER RISKS LIBOR transition action plans and associated roadmaps are intended to be
LIBOR Transition Risk consistent with the timelines recommended by these working groups. This
The LIBOR administrator ceased publication of non-USD LIBOR and includes the Commodity Futures Trading Commission’s SOFR First Initiative,
one week and two-month USD LIBOR on a representative basis on which is designed to promote derivatives trading in SOFR. Citi also continued
December 31, 2021, with plans to cease publication of all other USD LIBOR to engage with regulators, financial accounting bodies and others on LIBOR
tenors on June 30, 2023. Regulators expect banks, including Citi, to have transition matters.
ceased entering into new contracts that reference USD LIBOR as a benchmark Citi’s LIBOR transition efforts include, among other things, reducing its
by December 31, 2021, except for limited circumstances as set out in overall exposure to LIBOR, increasing Citi’s virtual client communication
regulatory guidance. efforts and client transition facilitation, including outreach regarding new
Citi recognizes that a transition away from and discontinuance of industry-led protocols and solutions, and using alternative reference rates in
LIBOR presents various risks and challenges that could significantly impact certain newly issued financial instruments and products. In the past several
financial markets and market participants, including Citi (for information years, Citi has issued preferred stock and benchmark debt referencing the
about Citi’s risks from a transition away from and discontinuation of LIBOR Secured Overnight Financing Rate (SOFR) and issued customer-related
or any other benchmark rates, see “Risk Factors—Other Risks” above). debt referencing SOFR and the Sterling Overnight Interbank Average Rate
Accordingly, Citi has continued its efforts to identify and manage its LIBOR (SONIA), the recommended replacement rate for Sterling LIBOR. Citi has also
transition risks. originated and arranged loans referencing SOFR and SONIA and executed
For example, Citi continues to closely monitor legislative, regulatory SOFR and SONIA-based derivatives contracts. Further, Citi has also been
and other developments related to LIBOR transition matters and legislative investing in its systems and infrastructure, as client activity moves away from
relief. The International Swaps and Derivatives Association (ISDA) published LIBOR to alternative reference rates. Since the ARRC’s recommendation of
the Interbank Offered Rate (IBOR) Fallbacks Protocol for existing IBOR CME Group’s Term SOFR in July 2021, Citi has focused on systems’ readiness
derivatives transactions, which became effective in January 2021. The to provide Term SOFR loan and derivatives to clients, where permitted.
IBOR Fallbacks Protocol provides derivatives market participants with new In 2021, Citi also focused on remediating existing LIBOR contracts for
fallbacks for legacy and new derivatives contracts if both counterparties which publication ceased on a representative basis on December 31, 2021.
adhere to the protocol or engage in bilateral amendments (see discussion Substantially all of these contracts were remediated by December 31, 2021,
below regarding Citi’s adherence to the protocol). In April 2021, legislation and Citi continues to actively engage in and track the remediation of any
was adopted in New York State that provides for the use of a statutory remaining contracts after December 31, 2021. As of December 31, 2021, Citi’s
replacement for USD LIBOR in certain New York law legacy contracts. Similar overall USD LIBOR gross notional exposure for contracts maturing after
federal legislation was passed in the House of Representatives in December the LIBOR cessation date of June 30, 2023 was approximately $7.1 trillion,
2021 and is pending passage by the Senate, although there is no guarantee which includes approximately $4 trillion of cleared derivatives that are
that the federal legislative proposal will become law. covered by planned Central Counterparty Clearing House (CCP) conversions,
In addition, Citi has established a LIBOR governance and implementation and approximately $2.4 trillion of bilateral derivatives that are covered by
program focused on identifying and addressing the impact of LIBOR robust contract fallback language. The remaining exposure of approximately
transition on Citi’s clients, operational capabilities and financial contracts. $0.7 trillion includes bilateral derivatives and cash products that will be
The program operates globally across Citi’s businesses and functions and addressed by 2022 contract remediation plans.
includes active involvement of senior management, oversight by Citi’s Asset In addition, for LIBOR contracts that have not yet been remediated, Citi
and Liability Committee and reporting to the Risk Management Committee continues to review the effect of relevant legislative solutions, which are
of Citigroup’s Board of Directors. As part of the program, Citi has continued expected to facilitate the transition to replacement rates.
to implement its LIBOR transition action plans and associated roadmaps Climate Risk
under the following key workstreams: program management; transition Climate change presents immediate and long-term risks to Citi and its clients
strategy and risk management; customer management, including internal and customers, with the risks expected to increase over time. Climate risk
communications and training, legal/contract management and product refers to the risk of loss arising from climate change and is comprised of
management; financial exposures and risk management; regulatory both physical risk and transition risk. Physical risk considers how chronic
and industry engagement; operations and technology; and finance, and acute climate change (e.g., increased storms, drought, fires, floods) can
risk, tax and treasury. directly damage physical assets (e.g., real estate, crops) or otherwise impact
During 2021, Citi continued to participate in a number of working groups their value or productivity. Transition risk considers how changes in policy,
formed by global regulators, including the Alternative Reference Rates technology, business practices and market preferences to address climate
Committee (ARRC) convened by the FRB. These working groups promote change (e.g., carbon pricing policies, power generation shifts from fossil fuels
and advance development of alternative reference rates and seek to identify to renewable energy) can lead to changes in the value of assets, commodities
and address potential challenges from any transition to such rates. Citi’s and companies.

116
 Climate risk is an overarching risk that can act as a driver of other
categories of risk, such as credit risk from obligors exposed to high climate
risk, reputational risk from increased stakeholder concerns about financing
high-carbon industries and operational risk from physical risks to Citi’s
facilities and personnel.
Citi currently identifies climate risk as an “emerging risk” within its
enterprise risk management framework. Emerging risks are risks or thematic
issues that are either new to the landscape, or in the case of climate risk,
existing risks that are rapidly changing or evolving in an escalating fashion,
which are difficult to assess due to limited data or other uncertainties.
For additional information on climate risk, see “Risk Factors—Other
Risks” above.
Citi reviews factors related to climate risk under its longstanding
Environmental and Social Risk Management (ESRM) Policy, which
includes a focus on climate risk related to financed projects and clients in
high-carbon sectors. Cautious of the credit risk of stranded assets, as well as
the reputational risks associated with the coal sector due to its high carbon
emissions, Citi began a phase-down of its financing of thermal coal mining
companies in 2015 and of new coal-fired power plants in 2018. As Citi’s
phase-down has continued, Citi’s ESRM Policy was updated to include a
prohibition on all project-related financing of new coal-fired power plants
and new or expanding thermal coal mines as well as clear timetables to
reduce financing of companies with high exposure to coal fired power and
coal mining who do not pursue low-carbon transition in the coming years.
These sector approaches allow Citi to set a comprehensive and industry-wide
approach to clarify its positions, set clear expectations for its clients and
help address certain climate risk driven credit risk concerns while reducing
reputation risk.
Citi continues to explore and test methodologies for quantifying how
climate risks could impact the individual credit profiles of its clients across
various sectors. To assist in embedding climate risk assessments in its credit
assessment process, Citi is developing sector-specific climate risk assessments.
Such climate risk assessments are designed to supplement publicly
available client disclosures and data provided from third-party vendors and
facilitate conversations with clients on their most material climate risks
and management plans for adaptation and mitigation. In the near term,
Citi’s assessments will consider sectors that have been identified as higher
climate risk by Citi’s risk identification process. This will not only help Citi
better understand its clients’ businesses and climate-related risks, but will
also provide a source of climate data. Citi’s net zero plan is leading to the
further integration of climate risk discussions into client engagement and
client selection.
Furthermore, Citi is developing globally consistent principles and
approaches for managing climate risk across Citi. Climate risk will be
embedded into relevant policies and processes over time.
In addition, Citi continues to participate in financial industry
collaborations to develop and pilot new methodologies and approaches for
measuring and assessing the potential financial risks of climate change.
Citi is also closely monitoring regulatory developments on climate risk and
sustainable finance, and actively engaging with regulators on these topics.
For additional information about sustainability and other ESG matters at
Citi, see “Sustainability and Other ESG Matters” above.

117
Country Risk significantly in the United Kingdom (U.K.) and Ireland, in order to more
Top 25 Country Exposures efficiently serve its corporate customers. As an example, with respect to the
The following table presents Citi’s top 25 exposures by country (excluding U.K., only 33% of corporate loans presented in the table below are to U.K.
the U.S.) as of December 31, 2021. (Including the U.S., the total exposure as domiciled entities (36% for unfunded commitments), with the balance of the
of December 31, 2021 to the top 25 countries would represent approximately loans predominately to European domiciled counterparties. Approximately
98% of Citi’s exposure to all countries.) 87% of the total U.K. funded loans and 88% of the total U.K. unfunded
For purposes of the table, loan amounts are reflected in the country commitments were investment grade as of December 31, 2021.
where the loan is booked, which is generally based on the domicile of the Trading account assets and investment securities are generally categorized
borrower. For example, a loan to a Chinese subsidiary of a Switzerland-based based on the domicile of the issuer of the security of the underlying reference
corporation will generally be categorized as a loan in China. In addition, entity. For additional information on the assets included in the table, see the
Citi has developed regional booking centers in certain countries, most footnotes to the table below.

Total Total as
Net MTM on hedges Trading Total Total Total a % of
ICG GCB Other derivatives/ (on loans Investment account as of as of as of Citi as of
In billions of dollars loans (1) loans funded (2) Unfunded(3) repos(4) and CVA) securities(5) assets(6) 4Q21 3Q21 4Q20 4Q21
United Kingdom $42.8 $ 0.2 $1.2 $45.7 $12.8 $(5.7) $ 3.6 $(4.7) $95.9 $111.6 $ 115.2 5.5%
Mexico 14.2 13.3 0.3 7.7 3.4 (0.9) 19.6 2.0 59.6 60.0 64.5 3.4
Hong Kong 18.8 15.3 0.2 7.1 0.7 (1.6) 7.9 2.0 50.4 52.8 49.0 2.9
Singapore 15.6 14.0 0.1 7.4 1.2 (0.9) 6.3 2.0 45.7 46.0 45.8 2.6
Ireland 13.9 — 0.6 28.9 0.4 (0.2) — 0.9 44.5 45.3 43.9 2.5
South Korea 3.8 15.7 0.1 2.1 1.0 (0.9) 9.7 0.5 32.0 34.2 35.8 1.8
India 6.8 3.8 0.9 5.3 4.6 (0.7) 8.5 0.6 29.8 30.3 31.4 1.7
Brazil 11.0 — 0.1 3.0 5.6 (0.7) 5.7 2.6 27.3 24.4 26.2 1.6
China 7.3 3.6 0.8 1.8 2.5 (1.0) 8.2 0.2 23.4 20.2 21.8 1.3
Germany 0.3 — — 6.0 6.4 (3.6) 5.9 4.4 19.4 14.4 24.4 1.1
Jersey 7.3 — 0.1 10.4 — (0.1) — — 17.7 14.9 13.4 1.0
Australia 5.9 — 0.1 8.0 1.1 (0.7) 1.3 0.7 16.4 17.7 21.7 0.9
Japan 2.3 — — 3.4 3.2 (1.8) 5.0 3.8 15.9 19.3 21.8 0.9
Taiwan 4.1 8.6 0.1 1.4 0.5 (0.2) 0.2 0.6 15.3 17.0 17.3 0.9
United Arab Emirates 7.3 1.5 0.1 3.8 0.4 (0.5) 2.2 0.1 14.9 16.6 12.4 0.9
Canada 2.1 0.5 0.1 7.5 1.7 (1.5) 3.3 1.0 14.7 16.9 17.8 0.8
Poland 3.2 1.8 — 2.6 0.4 (0.2) 4.5 0.8 13.1 11.2 15.0 0.7
Thailand 1.1 2.7 — 2.1 — — 1.8 0.2 7.9 8.0 8.0 0.5
Malaysia 1.4 3.4 0.2 1.0 0.1 (0.1) 1.9 (0.1) 7.8 8.2 8.3 0.4
Indonesia 2.2 0.6 — 1.2 0.2 (0.1) 1.5 (0.1) 5.5 5.8 6.0 0.3
Russia 2.2 0.7 — 0.7 0.4 (0.1) 1.5 — 5.4 5.5 5.2 0.3
Luxembourg 0.8 — — — 0.2 (0.9) 4.0 (0.1) 4.0 5.3 5.1 0.2
South Africa 1.4 — 0.1 0.6 0.2 (0.1) 1.8 (0.2) 3.8 3.8 3.6 0.2
Czech Republic 0.7 — — 0.9 1.6 (0.1) 0.4 — 3.5 3.5 4.3 0.2
Spain 0.4 — — 2.9 0.4 (1.3) — 0.3 2.7 3.3 3.4 0.2
Total as a % of Citi’s total exposure 32.8%
Total as a % of Citi’s non-U.S. total exposure 93.4%

(1) ICG loans reflect funded corporate loans and private bank loans, net of unearned income. As of December 31, 2021, private bank loans in the table above totaled $31.8 billion, concentrated in the U.K. ($8.8 billion),
Hong Kong ($8.6 billion) and Singapore ($7.5 billion).
(2) Other funded includes other direct exposures such as accounts receivable, loans HFS, other loans in Corporate/Other and investments accounted for under the equity method.
(3) Unfunded exposure includes unfunded corporate lending commitments, letters of credit and other contingencies.
(4) Net mark-to-market counterparty risk on OTC derivatives and securities lending/borrowing transactions (repos). Exposures are shown net of collateral and inclusive of CVA. Includes margin loans.
(5) Investment securities include debt securities available-for-sale, recorded at fair market value, and debt securities held-to-maturity, recorded at amortized cost.
(6) Trading account assets are shown on a net basis and include issuer risk on cash products and derivative exposure where the underlying reference entity/issuer is located in that country.

118
Argentina Russia
Citi operates in Argentina through its ICG businesses. As of Citi operates both its ICG and GCB businesses in Russia, although the
December 31, 2021, Citi’s net investment in its Argentine operations was Company is currently pursuing the exit of its GCB business in the country. All
approximately $1.5 billion. Citi uses the U.S. dollar as the functional of Citi’s domestic operations in Russia are conducted through a subsidiary
currency for its operations in highly inflationary countries under U.S. GAAP. of Citibank, which uses the Russian ruble as its functional currency. Citi’s
Citi uses Argentina’s official market exchange rate to remeasure its net net investment in Russia was approximately $1 billion as of December 31,
Argentine peso-denominated assets into the U.S. dollar. As of December 31, 2021. The majority of Citi’s net investment was hedged for foreign currency
2021, the official Argentine peso exchange rate against the U.S. dollar depreciation as of December 31, 2021, using forward foreign exchange
was 102.73. contracts. Citi’s total third-party exposure was approximately $8.2 billion
The Central Bank of Argentina maintains certain capital and currency as of December 31, 2021. These assets primarily consisted of corporate
controls that generally restrict Citi’s ability to access U.S. dollars in Argentina and consumer loans, local government debt securities, reverse repurchase
and remit substantially all of its earnings from its Argentine operations. agreements, and cash on deposit and placements with the Bank of Russia
Citi’s net investment in its Argentine operations is likely to increase as Citi and other financial institutions. A significant portion of Citi’s third-party
continues to generate net income from its Argentine franchise and the exposures were funded with domestic deposit liabilities from both ICG and
majority of its earnings cannot be remitted. GCB clients. Further, Citi has approximately $1.6 billion of additional
Due to the currency controls implemented by the Central Bank of exposures to Russian counterparties that are not held on the Russian
Argentina, certain indirect foreign exchange mechanisms have developed subsidiary and are not included in the $8.2 billion above.
that some Argentine entities may use to obtain U.S. dollars, generally at rates The $5.4 billion in Russia credit and other exposures in the “Top 25
that are significantly higher than Argentina’s official exchange rate. Citibank Country Exposures” table above does not include approximately $1.0 billion
Argentina is precluded from accessing these alternative mechanisms, of cash and placements with the Bank of Russia and other financial
and these exchange mechanisms cannot be used to remeasure Citi’s net institutions and $1.8 billion of reverse repurchase agreements with
monetary assets into the U.S. dollar under U.S. GAAP. Citi cannot predict various counterparties.
future fluctuations in Argentina’s official market exchange rate or to what Citi continues to monitor the current Russia–Ukraine geopolitical
extent Citi may be able to access U.S. dollars at the official exchange rate in situation and economic conditions and will mitigate its exposures and
the future. risks as appropriate. For additional information, see “Risk Factors—
Citi economically hedges the foreign currency risk in its net Argentine Market-Related Risk,” “—Operational Risks” and “—Other Risks” above.
peso-denominated assets to the extent possible and prudent using non-
deliverable forward (NDF) derivative instruments that are primarily executed
outside of Argentina. As of December 31, 2021, the international NDF market
had very limited liquidity, resulting in Citi being unable to economically
hedge nearly all of its Argentine peso exposure. As a result, and to the extent
that Citi does not execute NDF contracts for this unhedged exposure in the
future, Citi would record devaluations on its net Argentine peso-denominated
assets in earnings, without any benefit from a change in the fair value of
derivative positions used to economically hedge the exposure.
Citi continually evaluates its economic exposure to its Argentine
counterparties and reserves for changes in credit risk and sovereign risk
associated with its Argentine assets. Citi believes it has established appropriate
allowances for credit losses on its Argentine loans, and appropriate fair value
adjustments on Argentine assets and liabilities measured at fair value, for
such risks under U.S. GAAP as of December 31, 2021. However, U.S. regulatory
agencies may require Citi to record additional reserves in the future,
increasing ICG’s cost of credit, based on the perceived country risk associated
with its Argentine exposures.
For additional information on Citi’s emerging markets risks, including
those related to its Argentine exposures, see “Risk Factors” above.

119
FFIEC—Cross-Border Claims on Third Parties and Local
Country Assets
Citi’s cross-border disclosures are set forth below, based on the country
exposure bank regulatory reporting guidelines of the Federal Financial
Institutions Examination Council (FFIEC). The following summarizes some
of the FFIEC key reporting guidelines:
• Amounts are based on the domicile of the ultimate obligor, counterparty,
collateral (only including qualifying liquid collateral), issuer or
guarantor, as applicable (e.g., a security recorded by a Citi U.S. entity
but issued by the U.K. government is considered U.K. exposure; a loan
recorded by a Citi Mexico entity to a customer domiciled in Mexico
where the underlying collateral is held in Germany is considered
German exposure).
• Amounts do not consider the benefit of collateral received for secured
financing transactions (i.e., repurchase agreements, reverse repurchase
agreements and securities loaned and borrowed) and are reported based
on notional amounts.
• Netting of derivative receivables and payables, reported at fair value, is
permitted, but only under a legally binding netting agreement with the
same specific counterparty, and does not include the benefit of margin
received or hedges.
• Credit default swaps (CDS) are included based on the gross notional
amount sold and purchased and do not include any offsetting CDS on the
same underlying entity.
• Loans are reported without the benefit of hedges.
Given the requirements noted above, Citi’s FFIEC cross-border exposures
and total outstandings tend to fluctuate, in some cases significantly, from
period to period. As an example, because total outstandings under FFIEC
guidelines do not include the benefit of margin or hedges, market volatility in
interest rates, foreign exchange rates and credit spreads may cause significant
fluctuations in the level of total outstandings, all else being equal.

120
The tables below show each country whose total outstandings exceeded 0.75% of total Citigroup assets:

December 31, 2021

Cross-border claims on third parties and local country assets
Other Trading Short-term
(corporate assets(2) claims(2) Total Commitments Credit Credit
Banks Public NBFIs(1) and households) (included (included outstanding(3) and derivatives derivatives
In billions of dollars (a) (a) (a) (a) in (a)) in (a)) (sum of (a)) guarantees(4) purchased(5) sold(5)
United Kingdom $ 7.0 $31.1 $55.6 $19.2 $16.5 $70.8 $112.9 $23.0 $76.3 $70.8
Cayman Islands — — 78.8 13.2 7.4 56.3 92.0 9.9 0.4 0.3
Japan 31.0 30.1 12.8 8.7 15.6 54.8 82.6 8.4 13.4 12.1
Germany 4.5 48.9 47.7 9.6 18.5 78.3 110.7 23.2 48.6 44.7
Mexico 2.8 28.4 9.3 25.8 2.7 33.4 66.3 19.7 6.7 6.1
France 9.7 9.6 27.0 9.8 14.0 41.6 56.1 85.3 62.6 55.7
Singapore 1.9 18.3 12.1 17.4 2.7 39.1 49.7 16.3 1.4 1.3
South Korea 3.6 17.9 3.2 21.9 2.0 37.7 46.6 12.7 9.0 8.1
Hong Kong 1.3 12.3 3.9 21.8 4.2 30.2 39.3 13.6 1.7 1.5
Australia 3.9 14.2 5.7 12.8 7.3 22.9 36.6 13.6 4.0 3.9
China 4.2 12.9 3.7 14.7 8.0 26.3 35.5 4.4 9.6 9.0
India 1.2 15.0 4.4 13.1 2.6 23.4 33.7 10.2 1.8 1.4
Taiwan 0.5 7.0 1.7 15.8 4.8 21.1 25.0 14.6 — 0.1
Netherlands 5.9 8.8 3.3 5.7 5.2 16.2 23.7 9.8 30.8 27.6
Brazil 2.0 12.9 2.2 12.5 3.9 20.3 29.6 3.2 6.2 5.6
Italy 2.8 10.9 0.9 1.8 8.1 2.4 16.4 1.6 38.8 37.0
Switzerland 1.4 13.7 0.9 6.0 3.1 20.0 22.0 9.7 18.9 17.6
Canada 6.5 12.2 4.7 4.1 3.8 21.0 27.5 12.9 5.7 5.3

December 31, 2020

Cross-border claims on third parties and local country assets
Other Trading Short-term
(corporate assets(2) claims(2) Total Commitments Credit Credit
Banks Public NBFIs (1) and households) (included (included outstanding (3) and derivatives derivatives
In billions of dollars (a) (a) (a) (a) in (a)) in (a)) (sum of (a)) guarantees(4) purchased(5) sold(5)
United Kingdom(6) $16.0 $26.0 $50.5 $17.5 $14.2 $73.5 $110.0 $25.8 $76.2 $75.3
Cayman Islands — — 85.8 12.7 8.0 69.7 98.5 11.9 0.3 0.2
Japan 32.9 35.5 12.1 6.6 16.2 63.3 87.1 6.6 16.1 15.1
Germany(6) 7.1 51.8 15.9 9.6 11.3 58.6 84.4 14.1 49.7 48.1
Mexico 3.9 31.5 9.5 28.8 6.0 44.4 73.7 21.7 7.3 6.6
France 11.0 9.7 39.3 9.5 13.3 58.7 69.5 68.2 61.3 56.4
Singapore 2.5 25.6 10.7 17.5 2.8 46.5 56.3 13.8 1.9 1.5
South Korea 3.3 18.2 1.8 24.9 1.5 35.6 48.2 14.7 10.8 10.7
Hong Kong 1.5 13.8 3.9 19.8 7.2 33.2 39.0 13.1 2.1 1.7
Australia 5.1 16.4 4.0 13.0 9.6 31.6 38.5 13.0 5.7 5.2
China 4.5 16.3 3.3 14.1 9.7 33.4 38.2 5.8 10.5 10.0
India 1.9 14.0 2.5 12.9 2.3 22.1 31.3 11.3 1.8 1.6
Taiwan 0.4 7.8 2.0 16.5 5.1 23.7 26.7 14.1 — —
Netherlands 7.8 10.4 3.4 4.8 5.2 18.2 26.4 10.4 28.5 27.4
Brazil 2.8 11.3 1.6 9.9 5.2 20.0 25.6 2.7 6.0 6.0
Italy 2.5 19.1 0.6 1.9 15.0 16.1 24.1 2.7 42.3 41.3
Switzerland 1.8 14.3 1.4 4.9 2.6 20.0 22.4 7.3 18.0 17.4
Canada 4.5 6.3 5.9 4.5 3.4 15.1 21.2 14.5 3.9 4.0

(1) Non-bank financial institutions.

(2) Included in total outstanding.
(3) Total outstanding includes cross-border claims on third parties, as well as local country assets. Cross-border claims on third parties include cross-border loans, securities, deposits with banks and other monetary
assets, as well as net revaluation gains on foreign exchange and derivative products.
(4) Commitments (not included in total outstanding) include legally binding cross-border letters of credit and other commitments and contingencies as defined by the FFIEC guidelines. The FFIEC definition of commitments
includes commitments to local residents to be funded with local currency liabilities originated within the country.
(5) Credit default swaps (CDS) are not included in total outstanding.
(6) Exposures for the United Kingdom and Germany for the December 31, 2020 period have been revised by $(5.4) billion and $4.8 billion, respectively, as compared to those previously reported, with the balance in the
U.S. This revision reflects a correction in the domicile for Non-Bank Financial Institutions counterparties.

121
SIGNIFICANT ACCOUNTING POLICIES AND SIGNIFICANT ESTIMATES
This section contains a summary of Citi’s most significant accounting Losses on available-for-sale securities whose fair values are less than the
policies. Note 1 to the Consolidated Financial Statements contains a amortized cost, where Citi intends to sell the security or could more-likely-
summary of all of Citigroup’s significant accounting policies. These policies, than-not be required to sell the security, are recognized in earnings. Where
as well as estimates made by management, are integral to the presentation of Citi does not intend to sell the security nor could more-likely-than-not
Citi’s results of operations and financial condition. While all of these policies be required to sell the security, the portion of the loss related to credit is
require a certain level of management judgment and estimates, this section recognized as an allowance for credit losses with a corresponding provision
highlights and discusses the significant accounting policies that require for credit losses and the remainder of the loss is recognized in other
management to make highly difficult, complex or subjective judgments comprehensive income. Such losses are capped at the difference between the
and estimates at times regarding matters that are inherently uncertain and fair value and amortized cost of the security.
susceptible to change (see also “Risk Factors—Operational Risks” above). For equity securities carried at cost or under the measurement alternative,
Management has discussed each of these significant accounting policies, decreases in fair value below the carrying value are recognized as
the related estimates and its judgments with the Audit Committee of the impairment in the Consolidated Statement of Income. Moreover, for certain
Citigroup Board of Directors. equity method investments, decreases in fair value are only recognized in
earnings in the Consolidated Statement of Income if such decreases are
Valuations of Financial Instruments judged to be an other-than-temporary impairment (OTTI). Adjudicating the
Citigroup holds debt and equity securities, derivatives, retained interests in temporary nature of fair value impairments is also inherently judgmental.
securitizations, investments in private equity and other financial instruments. The fair value of financial instruments incorporates the effects of
A substantial portion of these assets and liabilities is reflected at fair value on Citi’s own credit risk and the market view of counterparty credit risk, the
Citi’s Consolidated Balance Sheet as Trading account assets, Available-for- quantification of which is also complex and judgmental. For additional
sale securities and Trading account liabilities. information on Citi’s fair value analysis, see Notes 1, 6, 24 and 25 to the
Citi purchases securities under agreements to resell (reverse repos or Consolidated Financial Statements.
resale agreements) and sells securities under agreements to repurchase
(repos), a substantial portion of which is carried at fair value. In addition,
certain loans, short-term borrowings, long-term debt and deposits, as well as
certain securities borrowed and loaned positions that are collateralized with
cash, are carried at fair value. Citigroup holds its investments, trading assets
and liabilities, and resale and repurchase agreements on Citi’s Consolidated
Balance Sheet to meet customer needs and to manage liquidity needs, interest
rate risks and private equity investing.
When available, Citi generally uses quoted market prices in active markets
to determine fair value and classifies such items within Level 1 of the fair
value hierarchy established under ASC 820-10, Fair Value Measurement.
If quoted market prices are not available, fair value is based on internally
developed valuation models that use, where possible, current market-based
or independently sourced market parameters, such as interest rates, currency
rates and option volatilities. Such models are often based on a discounted
cash flow analysis. In addition, items valued using such internally generated
valuation techniques are classified according to the lowest level input or
value driver that is significant to the valuation. Thus, an item may be
classified under the fair value hierarchy as Level 3 even though there may be
some significant inputs that are readily observable.
Citi is required to exercise subjective judgments relating to the
applicability and functionality of internal valuation models, the significance
of inputs or value drivers to the valuation of an instrument and the degree
of observability in certain markets. The fair value of these instruments is
reported on Citi’s Consolidated Balance Sheet with the changes in fair value
recognized in either the Consolidated Statement of Income or in AOCI.

122
Citi’s Allowance for Credit Losses (ACL)
The table below shows Citi’s ACL as of the fourth quarter of 2021. For
information on the drivers of Citi’s ACL release in the fourth quarter,
see below. For additional information on Citi’s accounting policy on
accounting for credit losses under ASC Topic 326, Financial Instruments—
Credit losses; Current Expected Credit Losses (CECL), see Note 1 to the
Consolidated Financial Statements below.

  Allowance for credit losses (ACL)

Balance Build (release) 2021 Balance ACLL/EOP loans
In millions of dollars Dec. 31, 2020 1Q21 2Q21 3Q21 4Q21 2021 FX/Other(1) Dec. 31, 2021 Dec. 31, 2021(2)
Cards(2) $ 16,805 $ (1,523) $ (1,106) $ (906) $ (957) $(4,492) $(322) $ 11,991 7.90%
All other GCB 2,419 (283) (292) (125) 18 (682) (149) 1,588
Global Consumer Banking $ 19,224 $ (1,806) $ (1,398) $ (1,031) $ (939) $(5,174) $(471) $ 13,579 5.08%
Institutional Clients Group 5,402 (1,312) (949) (65) (207) (2,533) (30) 2,839 0.73
Corporate/Other 330 (109) (99) (53) (30) (291) (2) 37
Allowance for credit losses on
loans (ACLL) $ 24,956 $(3,227) $(2,446) $(1,149) $(1,176) $(7,998) $(503) $ 16,455 2.49%
Allowance for credit losses on unfunded
lending commitments 2,655 (626) 44 (13) (193) (788) 4 1,871
Other 146 1 1 (13) 11 — 2 148
Total allowance for credit losses (ACL) $ 27,757 $(3,852) $(2,401) $(1,175) $(1,358) $(8,786) $(497) $ 18,474

(1) Includes reclassifications to Other assets related to Citi’s agreements to sell its consumer banking businesses in Australia and the Philippines. See Notes 2 and 15 to the Consolidated Financial Statements.
(2) As of December 31, 2021, in North America GCB, branded cards ACLL/EOP loans was 7.10% and retail services ACLL/EOP loans was 10.0%.

Citi’s reserves for expected credit losses on funded loans and unfunded Quantitative Component
lending commitments, standby letters of credit and financial guarantees Citi estimates expected credit losses for its quantitative component
are reflected on the Consolidated Balance Sheet in the Allowance for credit using (i) its comprehensive internal data on loss and default history,
losses on loans (ACLL) and Other liabilities (Allowance for credit losses (ii) internal credit risk ratings, (iii) external credit bureau and rating
on unfunded lending commitments (ACLUC)), respectively. In addition, agencies information, and (iv) a reasonable and supportable forecast of
Citi reserves for expected credit losses on other financial assets carried at macroeconomic conditions.
amortized cost, including held-to-maturity securities, reverse repurchase For its consumer and corporate portfolios, Citi’s expected credit losses
agreements, securities borrowed, deposits with banks and other financial are determined primarily by utilizing models that consider the borrowers’
receivables. These reserves, together with the ACLL and ACLUC, are referred to probability of default (PD), loss given default (LGD) and exposure at default
as the ACL. Changes in the ACL are reflected as Provision for credit losses in (EAD). The loss likelihood and severity models used for estimating expected
the Consolidated Statement of Income for each reporting period. credit losses are sensitive to changes in macroeconomic variables that inform
The ACL is composed of quantitative and qualitative management the forecasts, and cover a wide range of geographic, industry, product and
adjustment components. The quantitative component uses a forward-looking operating segments.
base macroeconomic forecast. The qualitative management adjustment In addition, Citi’s models determine expected credit losses based on
component reflects economic uncertainty using alternative downside leading credit indicators, including loan delinquencies, changes in portfolio
macroeconomic scenarios and portfolio characteristics and current economic size, default frequency, risk ratings and loss recovery rates (among other
conditions not captured in the quantitative component, such as adjustments things), as well as other current economic factors and credit trends,
to reflect uncertainty around the estimated impact of the pandemic on including housing prices, unemployment and gross domestic product
credit losses. Both the quantitative and qualitative management adjustment (GDP). This methodology is applied separately for each product within each
components are further discussed below. geographic region in which these portfolios exist.
This evaluation process is subject to numerous estimates and judgments.
The frequency of default, risk ratings, loss recovery rates, size and diversity
of individual large credits and ability of borrowers with foreign currency
obligations to obtain the foreign currency necessary for orderly debt
servicing, among other things, are all taken into account.

123
Changes in these estimates could have a direct impact on Citi’s credit costs Macroeconomic Variables
and the allowance in any period. Citi considers a multitude of macroeconomic variables for both the base and
Qualitative Component downside macroeconomic forecasts it uses to estimate the ACL, including
The qualitative management adjustment component includes, among domestic and international variables for its global portfolios and exposures.
other things, management adjustments to reflect economic uncertainty Citi’s forecasts of the U.S. unemployment rate and U.S. Real GDP growth rate
based on the likelihood and severity of downside scenarios and certain represent the key macroeconomic variables that most significantly affect its
portfolio characteristics not captured in the quantitative component, such estimate of the ACL.
as concentrations, collateral valuation, model limitations, idiosyncratic The tables below show Citi’s forecasted quarterly average U.S.
events and other factors as required by banking supervisory guidance for unemployment rate and year-over-year U.S. Real GDP growth rate used
the ACL. The qualitative management adjustment component also reflects in determining Citi’s ACL for each quarterly reporting period from
the uncertainty around the estimated impact of the pandemic on credit 4Q20 to 4Q21:
loss estimates. The ultimate extent of the pandemic’s impact on Citi’s ACL
Quarterly average 13-quarter
will depend on, among other things, (i) how consumers respond to the
U.S. unemployment 4Q21 2Q22 4Q22 average(1)
conclusion of government stimulus and assistance programs, (ii) the impact
on unemployment, (iii) the timing and extent of the economic recovery, Citi forecast at 4Q20 6.3 6.1 5.7 6.1
Citi forecast at 1Q21 4.9 4.1 3.8 4.3
(iv) the severity and duration of any resurgence of COVID-19, (v) the rate
Citi forecast at 2Q21 4.6 4.1 3.9 4.1
of distribution and administration of vaccines and (vi) the extent of any Citi forecast at 3Q21 4.5 4.1 3.9 4.0
market volatility. Citi forecast at 4Q21 4.3 4.0 3.8 3.8
4Q21 Changes in the ACL (1) Represents the average unemployment rate for the rolling, forward-looking 13 quarters in the
In the fourth quarter of 2021, Citi released $1.0 billion of the ACL for its forecast horizon.

consumer portfolios and $0.4 billion of the ACL for its corporate portfolios,
for a total release of $1.4 billion. The releases in the consumer and Year-over-year growth rate(1)
corporate ACLs were driven primarily by the continued improvement in Full year
U.S. Real GDP 2021 2022 2023
the macroeconomic outlook, as well as continued improvements in credit
quality. The overall qualitative management adjustments declined compared Citi forecast at 4Q20 3.7 2.7 2.6
Citi forecast at 1Q21 6.2 4.1 1.9
to the previous quarter. Based on its latest macroeconomic forecast, Citi
Citi forecast at 2Q21 6.5 3.7 2.0
believes its analysis of the ACL reflects the forward view of the economic
Citi forecast at 3Q21 5.9 3.9 2.1
environment as of December 31, 2021. Citi forecast at 4Q21 5.5 4.0 2.2

(1) The year-over-year growth rate is the percentage change in the Real (inflation adjusted) GDP level.

Under the base macroeconomic forecast as of 4Q21, U.S. Real GDP

growth is expected to remain strong during 2022, and the unemployment
rate is expected to continue to improve as the U.S. moves past the peak of the
pandemic-related health and economic crisis.
Consumer
As discussed above, Citi’s total consumer ACLL release (including
Corporate/Other) of $1.0 billion in the fourth quarter of 2021 reduced
the ACLL balance to $13.6 billion, or 5.0% of total consumer loans as of
December 31, 2021. The release was primarily driven by the continued
improvement in the macroeconomic outlook, as well as continued
improvements in credit quality. Citi’s consumer ACLL is largely driven by the
cards businesses.

124
 For cards, including Citi’s international businesses, the level of reserves or a significant portion of a reporting unit or a significant decline in Citi’s
relative to EOP loans decreased to 7.9% as of December 31, 2021, compared to stock price. During 2021, the annual test was performed, which resulted
9.1% at September 30, 2021, primarily driven by the continued improvement in no goodwill impairment as described in Note 16 to the Consolidated
in the macroeconomic outlook, as well as continued improvements in credit Financial Statements.
quality. For the remaining consumer exposures, the level of reserves relative As of December 31, 2021, Citigroup’s activities were conducted through
to EOP loans was 1.4% at December 31, 2021, essentially unchanged from the Global Consumer Banking and Institutional Clients Group business
September 30, 2021. operating segments and Corporate/Other. Goodwill impairment testing
Corporate is performed at the level below the business segment (referred to as a
Citi’s corporate ACLL release of $0.2 billion in the fourth quarter of 2021 reporting unit).
reduced the ACLL reserve balance to $2.8 billion, or 0.73% of total funded Citi utilizes allocated equity as a proxy for the carrying value of its
loans. The release was primarily driven by improvements in portfolio credit reporting units for purposes of goodwill impairment testing. The allocated
quality, as well as improvement in the macroeconomic outlook. equity in the reporting units is determined based on the capital the business
The Allowance for credit losses on unfunded lending commitments would require if it were operating as a standalone entity, incorporating
(ACLUC) release of $191 million in the fourth quarter of 2021 decreased the sufficient capital to be in compliance with both current and expected
total ACLUC reserve balance included in Other liabilities to $1.9 billion at regulatory capital requirements, including capital for specifically identified
December 31, 2021. goodwill and intangible assets. The capital allocated to the reporting units
is incorporated into the annual budget process, which is approved by Citi’s
ACLL and Non-accrual Ratios Board of Directors.
At December 31, 2021, the ratio of the allowance for credit losses to total Goodwill impairment testing involves management judgment, requiring
funded loans was 2.49% (5.02% for consumer loans and 0.73% for corporate an assessment of whether the carrying value of a reporting unit can be
loans) compared to 2.69% at September 30, 2021 (5.55% for consumer loans supported by its fair value of the reporting unit using widely accepted
and 0.77% for corporate loans). valuation techniques, such as the market approach (earnings multiples
Citi’s total non-accrual loans were $3.4 billion at December 31, 2021, and/or transaction multiples) and/or the income approach (discounted cash
down $610 million from September 30, 2021. Consumer non-accrual loans flow (DCF) method). In applying these methodologies, Citi utilizes a number
decreased $87 million to $1.5 billion at December 31, 2021 from $1.6 of factors, including actual operating results, future business plans, economic
billion at September 30, 2021, while corporate non-accrual loans decreased projections and market data.
$523 million to $1.9 billion at December 31, 2021 from $2.4 billion at Similar to 2020, Citi engaged an independent valuation specialist in
September 30, 2021. In addition, the ratio of non-accrual loans to total 2021 to assist in Citi’s valuation of all the reporting units, employing both
consumer loans was 0.55% and non-accrual loans to total corporate loans the market approach and the DCF method. The resulting fair values were
was 0.47%, at December 31, 2021. relatively consistent and appropriate weighting was given to outputs from
Regulatory Capital Impact both methods. The DCF method utilized at the time of each impairment
Citi has elected to phase in the CECL impact for regulatory capital purposes. test used discount rates that Citi believes adequately reflected the risk
The transition provisions were recently modified to defer the phase-in. After and uncertainty in the financial markets in the internally generated
two years with no impact on capital, the CECL transition impact will phase cash flow projections.
in over a three-year transition period with 25% of the impact (net of deferred The DCF method employs a capital asset pricing model in estimating
taxes) recognized on the first day of each subsequent year, commencing the discount rate. Since none of the Company’s reporting units are publicly
January 1, 2022, and will be fully implemented on January 1, 2025. In traded, individual reporting unit fair value determinations cannot be directly
addition, 25% of the impact of the build (pretax) in 2020 and 2021 were correlated to Citigroup’s common stock price. The sum of the fair values
deferred and being amortized over the same timeframe. of the reporting units exceeded the overall market capitalization of Citi as
For a further description of the ACL and related accounts, see Notes 1 and of July 1, 2021. However, Citi believes that it is not meaningful to reconcile
15 to the Consolidated Financial Statements. the sum of the fair values of the Company’s reporting units to its market
For a discussion of the adoption of the CECL accounting pronouncement, capitalization due to several factors. The market capitalization of Citigroup
see Note 1 to the Consolidated Financial Statements. reflects the execution risk in a transaction involving Citigroup due to its size.
Goodwill However, the individual reporting units’ fair values are not subject to the
Citi tests goodwill for impairment annually on July 1 (the annual test) same level of execution risk nor a business model that is as international.
and through interim assessments between annual tests if an event occurs In addition, the market capitalization of Citigroup does not include
or circumstances change that would more-likely-than-not reduce the fair consideration of the individual reporting unit’s control premium.
value of a reporting unit below its carrying amount, such as a significant
adverse change in the business climate, a decision to sell or dispose of all

125
 Citi performed its annual goodwill impairment test as of July 1, 2021. (ODL) and expenses for U.S. tax purposes to branch earnings. Citi expects no
The fair values of Citi’s reporting units as a percentage of their carrying residual U.S. tax on such earnings since it currently has sufficient branch tax
values ranged from approximately 125% to 153%, resulting in no carry-forwards. With respect to non-U.S. subsidiaries, dividends from these
impairment. While the inherent risk related to uncertainty is embedded subsidiaries are excluded from U.S. taxation. While the majority of Citi’s
in the key assumptions used in the valuations, the economic and business non-U.S. subsidiary earnings are classified as Global Intangible Low Taxed
environments continue to evolve as management implements its strategic Income (GILTI), Citi expects no material residual U.S. tax on such earnings
refresh, which includes, among others, the exits of consumer businesses in based on its non-U.S. subsidiaries’ local tax rates, which exceed, on average,
13 markets in Asia and EMEA, as well as the exit of the Mexico consumer, the GILTI tax rate. Finally, Citi does not expect the Base Erosion Anti-Abuse
small business and middle-market banking operations. If management’s Tax (BEAT) to affect its tax provision.
future estimate of key economic and market assumptions were to differ from Deferred Tax Assets and Valuation Allowances
its current assumptions, Citi could potentially experience material goodwill At December 31, 2021, Citi had net DTAs of $24.8 billion. In the fourth
impairment charges in the future. Citi expects that the implementation of its quarter of 2021, Citi’s DTAs increased by $0.3 billion, primarily as a result
new operating segments and reporting units in the first quarter of 2022, as of losses in Other comprehensive income. On a full-year basis, Citi’s DTAs
well as the timing and sequencing of the sales of its Asia consumer banking at December 31, 2021 were essentially unchanged from $24.8 billion at
businesses, may result in goodwill impairment. See Notes 1 and 16 to the December 31, 2020.
Consolidated Financial Statements for additional information on goodwill, Of Citi’s total net DTAs of $24.8 billion as of December 31, 2021,
including the changes in the goodwill balance year-over-year and the $9.5 billion, primarily related to tax carry-forwards, was deducted in
segments’ goodwill balances as of December 31, 2021. calculating Citi’s regulatory capital. Net DTAs arising from temporary
Income Taxes differences are deducted from regulatory capital if in excess of the 10%/15%
limitations (see “Capital Resources” above). For the quarter and year
Overview ended December 31, 2021, Citi did not have any such DTAs. Accordingly,
Citi is subject to the income tax laws of the U.S., its states and local the remaining $15.3 billion of net DTAs as of December 31, 2021 was not
municipalities and the non-U.S. jurisdictions in which Citi operates. These deducted in calculating regulatory capital pursuant to Basel III standards,
tax laws are complex and are subject to differing interpretations by the and was appropriately risk weighted under those rules.
taxpayer and the relevant governmental taxing authorities. Disputes over Citi’s total VA at December 31, 2021 was $4.2 billion, a decrease of
interpretations of the tax laws may be subject to review and adjudication by $1.0 billion from $5.2 billion at December 31, 2020. The decrease was
the court systems of the various tax jurisdictions or may be settled with the primarily driven by usage of carry-forwards and expirations in the FTC
taxing authority upon audit. branch basket. Citi’s VA of $4.2 billion is composed of $2.5 billion on its FTC
In establishing a provision for income tax expense, Citi must make carry-forwards, $1.0 billion on its U.S. residual DTA related to its non-U.S.
judgments and interpretations about the application of these inherently branches, $0.6 billion on local non-U.S. DTAs and $0.1 billion on state net
complex tax laws. Citi must also make estimates about when in the future operating loss carry-forwards.
certain items will affect taxable income in the various tax jurisdictions, In 2021, Citi reduced its VA for DTAs related to FTCs in its branch basket
both domestic and foreign. Deferred taxes are recorded for the future for 2021 and future periods. As stated above with regard to the impact of
consequences of events that have been recognized in the financial statements non-U.S. branches on Citi’s earnings, the level of branch pretax income,
or tax returns, based upon enacted tax laws and rates. Deferred tax assets the local branch tax rate and the allocations of ODL and expenses for U.S.
(DTAs) are recognized subject to management’s judgment that realization tax purposes to the branch basket are the main factors in determining the
is more-likely-than-not. For example, if it is more-likely-than-not that a branch VA. The allocated ODL was enhanced by significant taxable income
carry-forward would expire unused, Citi would set up a valuation allowance generated in the current year. In addition, during 2021, the global interest
(VA) against that DTA. Citi has established valuation allowances as rate environment and balance sheet requirements in non-U.S. branches
described below. resulted in a lower relative allocation of interest expense to non-U.S.
As a result of the Tax Cuts and Jobs Act (Tax Reform), beginning in 2018, branches. The combination of the factors enumerated resulted in a VA release
Citi is taxed on income generated by its U.S. operations at a federal tax rate of $0.2 billion. Citi also released branch basket VA of $0.1 billion with respect
of 21%. The effect on Citi’s state tax rate is dependent upon how and when to future years, based upon Citi’s operating plan and estimates of future
the individual states that have not yet addressed the federal tax law changes branch basket factors, as outlined above.
choose to adopt the various new provisions of the U.S. Internal Revenue Code. Citi’s VA of $0.8 billion against FTC carry-forwards in its general
Citi’s non-U.S. branches and subsidiaries are subject to tax at their local basket was reduced by $0.2 billion in 2021, primarily as a result of audit
tax rates. Non-U.S. branches also continue to be subject to U.S. taxation. adjustments made to prior years’ returns. In Citi’s general basket for FTCs,
The impact of this on Citi’s earnings depends on the level of branch pretax changes in the forecasted amount of income in U.S. locations derived from
income, the local branch tax rate and allocations of overall domestic loss sources outside the U.S., in addition to tax examination changes from prior

126
years, could alter the amount of valuation allowance that is needed against Potential U.S. Tax Legislation
such FTCs. Citi continues to look for additional actions that may become On January 4, 2022, final FTC regulations were published in the Federal
prudent and feasible, taking into account client, regulatory and operational Register. These regulations eliminate the creditability of foreign taxes paid
considerations. (See Note 9 to the Consolidated Financial Statements.) in certain situations. These include countries that do not align with U.S.
Recognized FTCs comprised approximately $2.8 billion of Citi’s DTAs tax principles in significant part and for services performed outside the
as of December 31, 2021, compared to approximately $4.4 billion as of recipient country. Citi is examining the extent to which these regulations will
December 31, 2020. The decrease in FTCs year-over-year was primarily due impact its effective tax rate. Any adoption effect on Citi’s DTAs, including its
to current-year usage. The FTC carry-forward period represents the most valuation allowance against FTC carry-forwards, will be reported in the first
time-sensitive component of Citi’s DTAs. quarter of 2022. Citi does not expect a significant impact on its 2022 effective
Citi has an ODL of approximately $15 billion at December 31, 2021, tax rate. However, the U.S. president’s proposed legislation discussed below, if
which allows Citi to elect a percentage between 50% and 100% of future enacted, could exacerbate the impact of these regulations.
years’ domestic source income to be reclassified as foreign source income. The president has proposed the Build Back Better Act, which makes
(See Note 9 to the Consolidated Financial Statements for a description of substantial changes to the taxation of multinational corporations. While the
the ODL.) Act does not presently contain an increase to the U.S. corporate tax rate, it
The majority of Citi’s U.S. federal net operating loss carry-forward and all would impose a minimum level of U.S. taxation, computed on a jurisdiction
of its New York State and City net operating loss carry-forwards are subject to by jurisdiction basis. The Organization for Economic Cooperation and
a carry-forward period of 20 years. This provides enough time to fully utilize Development (OECD) Inclusive Framework (140 countries) similarly
the net DTAs pertaining to these existing net operating loss carry-forwards. proposed a minimum tax that could impact Citi.
This is due to Citi’s forecast of sufficient U.S. taxable income and the
continued taxation of Citi’s non-U.S. income by New York State and City.
Although realization is not assured, Citi believes that the realization of
its recognized net DTAs of $24.8 billion at December 31, 2021 is more-likely-
than-not, based upon management’s expectations of future taxable income
in the jurisdictions in which the DTAs arise, as well as available tax planning
strategies (as defined in ASC Topic 740, Income Taxes). Citi has concluded
that it has the necessary positive evidence to support the realization of its net
DTAs after taking its valuation allowances into consideration.
For additional information on Citi’s income taxes, including its income
tax provision, tax assets and liabilities and a tabular summary of Citi’s
net DTAs balance as of December 31, 2021 (including the FTCs and
applicable expiration dates of the FTCs), see Note 9 to the Consolidated
Financial Statements. For information on Citi’s ability to use its DTAs, see
“Risk Factors—Strategic Risks” above and Note 9 to the Consolidated
Financial Statements.

127
2017 Impact of Tax Reform
The table below discloses the as-reported GAAP results for 2018 and 2017, as well as the 2017 adjusted results excluding the one-time 2017 impact of Tax
Reform. The table does not reflect any adjustment to 2018 results:
2018 2017 2017 one-time 2017 2018 increase (decrease)
as as impact of adjusted vs. 2017 ex-Tax Reform
In millions of dollars, except per share amounts and as otherwise noted reported(1) reported Tax Reform results(2) $ Change % Change
Net income $18,045 $ (6,798) $(22,594) $15,796 $2,249 14%
Diluted earnings per share:
Income from continuing operations 6.69 (2.94) (8.31) 5.37 1.32 25
Net income 6.68 (2.98) (8.31) 5.33 1.35 25
Effective tax rate 22.8% 129.1% (9,930)bps 29.8% (700)bps
Performance and other metrics:
Return on average assets 0.94% (0.36)% (120)bps 0.84% 10bps
Return on average common stockholders’ equity 9.4 (3.9) (1,090) 7.0 240
Return on average total stockholders’ equity 9.1 (3.0) (1,000) 7.0 210
Return on average tangible common equity 11.0 (4.6) (1,270) 8.1 290
Dividend payout ratio 23.1 (32.2) (5,020) 18.0 510
Total payout ratio 109.1 (213.9) (33,140) 117.5 840

(1) 2018 includes the one-time benefit of $94 million, due to the finalization of the provisional component of the impact based on Citi’s analysis as well as additional guidance received from the U.S. Treasury Department
related to Tax Reform, which impacted the tax line within Corporate/Other.
(2) 2017 excludes the one-time impact of Tax Reform.

Litigation Accruals
See the discussion in Note 27 to the Consolidated Financial Statements for
information regarding Citi’s policies on establishing accruals for litigation
and regulatory contingencies.
Accounting Changes
See Note 1 to the Consolidated Financial Statements for a discussion of
changes in accounting standards.

128
DISCLOSURE CONTROLS AND PROCEDURES
Citi’s disclosure controls and procedures are designed to ensure that
information required to be disclosed under the Securities Exchange Act of
1934, as amended, is recorded, processed, summarized and reported within
the time periods specified in the SEC’s rules and forms, including without
limitation that information required to be disclosed by Citi in its SEC filings
is accumulated and communicated to management, including the Chief
Executive Officer (CEO) and Chief Financial Officer (CFO), as appropriate, to
allow for timely decisions regarding required disclosure.
Citi’s Disclosure Committee assists the CEO and CFO in their
responsibilities to design, establish, maintain and evaluate the effectiveness
of Citi’s disclosure controls and procedures. The Disclosure Committee
is responsible for, among other things, the oversight, maintenance and
implementation of the disclosure controls and procedures, subject to the
supervision and oversight of the CEO and CFO.
Citi’s management, with the participation of its CEO and CFO, has
evaluated the effectiveness of Citigroup’s disclosure controls and procedures
(as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934)
as of December 31, 2021. Based on that evaluation, the CEO and CFO have
concluded that at that date Citigroup’s disclosure controls and procedures
were effective.

129
MANAGEMENT’S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING
Citi’s management is responsible for establishing and maintaining Because of its inherent limitations, internal control over financial
adequate internal control over financial reporting. Citi’s internal control reporting may not prevent or detect all misstatements. Also, projections of
over financial reporting is designed to provide reasonable assurance any evaluation of effectiveness to future periods are subject to the risk that
regarding the reliability of its financial reporting and the preparation of controls may become inadequate because of changes in conditions or that
financial statements for external reporting purposes in accordance with the degree of compliance with the policies or procedures may deteriorate.
U.S. generally accepted accounting principles. Citi’s internal control over Citi’s management assessed the effectiveness of Citigroup’s internal
financial reporting includes those policies and procedures that (i) pertain control over financial reporting as of December 31, 2021 based on the criteria
to the maintenance of records that in reasonable detail accurately and set forth by the Committee of Sponsoring Organizations of the Treadway
fairly reflect the transactions and dispositions of Citi’s assets, (ii) provide Commission (COSO) in Internal Control—Integrated Framework (2013).
reasonable assurance that transactions are recorded as necessary to permit Based on this assessment, management believes that, as of December
preparation of financial statements in accordance with generally accepted 31, 2021, Citi’s internal control over financial reporting was effective. In
accounting principles and that Citi’s receipts and expenditures are made only addition, there were no changes in Citi’s internal control over financial
in accordance with authorizations of Citi’s management and directors and reporting during the fiscal quarter ended December 31, 2021 that materially
(iii) provide reasonable assurance regarding prevention or timely detection affected, or are reasonably likely to materially affect, Citi’s internal control
of unauthorized acquisition, use or disposition of Citi’s assets that could have over financial reporting.
a material effect on its financial statements. The effectiveness of Citi’s internal control over financial reporting as
of December 31, 2021 has been audited by KPMG LLP, Citi’s independent
registered public accounting firm, as stated in their report below, which
expressed an unqualified opinion on the effectiveness of Citi’s internal
control over financial reporting as of December 31, 2021.

130
FORWARD-LOOKING STATEMENTS
Certain statements in this Form 10-K, including but not limited to statements
included within the Management’s Discussion and Analysis of Financial
Condition and Results of Operations, are “forward-looking statements”
within the meaning of the U.S. Private Securities Litigation Reform Act of
1995. In addition, Citigroup also may make forward-looking statements in its
other documents filed or furnished with the SEC, and its management may
make forward-looking statements orally to analysts, investors, representatives
of the media and others.
Generally, forward-looking statements are not based on historical facts
but instead represent Citigroup’s and its management’s beliefs regarding
future events. Such statements may be identified by words such as believe,
expect, anticipate, intend, estimate, may increase, may fluctuate, target and
illustrative, and similar expressions or future or conditional verbs such as
will, should, would and could.
Such statements are based on management’s current expectations and are
subject to risks, uncertainties and changes in circumstances. Actual results
and capital and other financial conditions may differ materially from those
included in these statements due to a variety of factors, including without
limitation (i) the precautionary statements included within each individual
business’s discussion and analysis of its results of operations and (ii) the
factors listed and described under “Risk Factors” above.
Any forward-looking statements made by or on behalf of Citigroup speak
only as to the date they are made, and Citi does not undertake to update
forward-looking statements to reflect the impact of circumstances or events
that arise after the forward-looking statements were made.

131
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We conducted our audits in accordance with the standards of the PCAOB.
Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the consolidated financial statements
To the Stockholders and Board of Directors are free of material misstatement, whether due to error or fraud, and whether
Citigroup Inc.: effective internal control over financial reporting was maintained in all
material respects.
Opinions on the Consolidated Financial Statements and Internal Control Our audits of the consolidated financial statements included performing
Over Financial Reporting procedures to assess the risks of material misstatement of the consolidated
We have audited the accompanying consolidated balance sheets of financial statements, whether due to error or fraud, and performing
Citigroup Inc. and subsidiaries (the Company) as of December 31, 2021 procedures that respond to those risks. Such procedures included examining,
and 2020, the related consolidated statements of income, comprehensive on a test basis, evidence regarding the amounts and disclosures in the
income, changes in stockholders’ equity and cash flows for each of the years consolidated financial statements. Our audits also included evaluating the
in the three-year period ended December 31, 2021, and the related notes accounting principles used and significant estimates made by management,
(collectively, the consolidated financial statements). We also have audited as well as evaluating the overall presentation of the consolidated financial
the Company’s internal control over financial reporting as of December 31, statements. Our audit of internal control over financial reporting included
2021, based on criteria established in Internal Control – Integrated obtaining an understanding of internal control over financial reporting,
Framework (2013) issued by the Committee of Sponsoring Organizations of assessing the risk that a material weakness exists, and testing and evaluating
the Treadway Commission. the design and operating effectiveness of internal control based on the
In our opinion, the consolidated financial statements referred to above assessed risk. Our audits also included performing such other procedures
present fairly, in all material respects, the financial position of the Company as as we considered necessary in the circumstances. We believe that our audits
of December 31, 2021 and 2020, and the results of its operations and its cash provide a reasonable basis for our opinions.
flows for each of the years in the three-year period ended December 31, 2021, Definition and Limitations of Internal Control Over Financial Reporting
in conformity with U.S. generally accepted accounting principles. Also in our A company’s internal control over financial reporting is a process designed
opinion, the Company maintained, in all material respects, effective internal to provide reasonable assurance regarding the reliability of financial
control over financial reporting as of December 31, 2021 based on criteria reporting and the preparation of financial statements for external purposes
established in Internal Control – Integrated Framework (2013) issued by the in accordance with generally accepted accounting principles. A company’s
Committee of Sponsoring Organizations of the Treadway Commission. internal control over financial reporting includes those policies and
Change in Accounting Principle procedures that (1) pertain to the maintenance of records that, in reasonable
As discussed in Note 1 to the consolidated financial statements, the Company detail, accurately and fairly reflect the transactions and dispositions of the
has changed its method of accounting for the recognition and measurement assets of the company; (2) provide reasonable assurance that transactions
of credit losses as of January 1, 2020 due to the adoption of ASC Topic 326, are recorded as necessary to permit preparation of financial statements in
Financial Instruments – Credit Losses. accordance with generally accepted accounting principles, and that receipts
Basis for Opinions and expenditures of the company are being made only in accordance
The Company’s management is responsible for these consolidated financial with authorizations of management and directors of the company; and
statements, for maintaining effective internal control over financial (3) provide reasonable assurance regarding prevention or timely detection
reporting, and for its assessment of the effectiveness of internal control over of unauthorized acquisition, use, or disposition of the company’s assets that
financial reporting, included in the accompanying management’s annual could have a material effect on the financial statements.
report on internal control over financial reporting. Our responsibility is to Because of its inherent limitations, internal control over financial
express an opinion on the Company’s consolidated financial statements and reporting may not prevent or detect misstatements. Also, projections of
an opinion on the Company’s internal control over financial reporting based any evaluation of effectiveness to future periods are subject to the risk that
on our audits. We are a public accounting firm registered with the Public controls may become inadequate because of changes in conditions, or that
Company Accounting Oversight Board (United States) (PCAOB) and are the degree of compliance with the policies or procedures may deteriorate.
required to be independent with respect to the Company in accordance with Critical Audit Matters
the U.S. federal securities laws and the applicable rules and regulations of the The critical audit matters communicated below are matters arising from
Securities and Exchange Commission and the PCAOB. the current period audit of the consolidated financial statements that were
communicated or required to be communicated to the audit committee and
that: (1) relate to accounts or disclosures that are material to the consolidated
financial statements and (2) involved our especially challenging, subjective,
or complex judgments. The communication of critical audit matters does

132
not alter in any way our opinion on the consolidated financial statements, developing an independent fair value estimate for a selection of certain
taken as a whole, and we are not, by communicating the critical audit matters Level 3 assets and liabilities recorded at fair value on a recurring basis,
below, providing separate opinions on the critical audit matters or on the based on independently developed valuation models and assumptions,
accounts or disclosures to which they relate. as applicable, using market data sources we determined to be relevant
Assessment of the fair value of certain Level 3 assets and liabilities and reliable, and compared our independent expectation to the
measured on a recurring basis Company’s fair value measurements.
As described in Notes 1, 24 and 25 to the consolidated financial Assessment of the allowance for credit losses collectively evaluated
statements, the Company’s assets and liabilities recorded at fair value for impairment
on a recurring basis were $856.6 billion and $313.4 billion, respectively As discussed in Notes 1 and 15 to the consolidated financial statements,
at December 31, 2021. The Company estimated the fair value of Level 3 the Company’s allowance for credit losses related to loans and unfunded
assets and liabilities measured on a recurring basis ($14.7 billion and lending commitments collectively evaluated for impairment (the
$35.2 billion, respectively at December 31, 2021) utilizing various collective ACLL) was $18.3 billion as of December 31, 2021. The expected
valuation techniques with one or more significant inputs or significant credit losses for the quantitative component of the collective ACLL is the
value drivers being unobservable including, but not limited to, product of multiplying the probability of default (PD), loss given default
complex internal valuation models, alternative pricing procedures or (LGD), and exposure at default (EAD) for consumer and corporate
comparables analysis and discounted cash flows. loans. For consumer credit cards, the Company uses the payment rate
We identified the assessment of the measurement of fair value for approach over the life of the loan, which leverages payment rate curves,
certain Level 3 assets and liabilities recorded at fair value on a recurring to determine the payments that should be applied to liquidate the
basis as a critical audit matter. A high degree of effort, including end-of-period balance in the estimation of EAD. For unconditionally
specialized skills and knowledge, and subjective and complex auditor cancelable accounts, reserves are based on the expected life of the
judgment was involved in the assessment of the Level 3 fair values due balance as of the evaluation date and do not include any undrawn
to measurement uncertainty. Specifically, the assessment encompassed commitments that are unconditionally cancelable. The Company’s
the evaluation of the fair value methodology, including methods, models utilize a single forward-looking macroeconomic forecast and
models and significant assumptions and inputs used to estimate fair macroeconomic assumptions over reasonable and supportable forecast
value. Significant assumptions and inputs include interest rate, price, periods. Reasonable and supportable forecast periods vary by product.
yield, credit spread, volatilities, correlations and forward prices. The For consumer loan models, the Company uses a 13-quarter reasonable
assessment also included an evaluation of the conceptual soundness and and supportable period and reverts to historical loss experience
performance of the valuation models. thereafter. For corporate loan models, the Company uses a nine-quarter
The following are the primary procedures we performed to address reasonable and supportable period followed by a three-quarter transition
this critical audit matter. We involved valuation professionals with to historical loss experience. Additionally, for consumer loans, these
specialized skills and knowledge who assisted in evaluating the design models consider leading credit indicators including loan delinquencies,
and testing the operating effectiveness of certain internal controls as well as economic factors. For corporate loans, these models consider
related to the Company’s Level 3 fair value measurements, including the credit quality as measured by risk ratings and economic factors.
controls over: The qualitative component considers idiosyncratic events and the
• valuation methodologies, including significant inputs and uncertainty of forward-looking economic scenarios.
assumptions We identified the assessment of the collective ACLL as a critical
• independent price verification audit matter. The assessment involved significant measurement
• evaluating that significant model assumptions and inputs reflected uncertainty requiring complex auditor judgment, and specialized skills
those which a market participant would use to determine an exit and knowledge as well as experience in the industry. This assessment
price in the current market environment encompassed the evaluation of the various components of the collective
ACLL methodology, including the methods and models used to estimate
• the valuation models used were mathematically accurate and
the PD, LGD, and EAD and certain key assumptions and inputs for the
appropriate to value the financial instruments
Company’s quantitative and qualitative components. Key assumptions
• relevant information used within the Company’s models that was and inputs for consumer loans included loan delinquencies, certain
reasonably available was considered in the fair value determination. credit indicators, reasonable and supportable forecast periods, expected
We evaluated the Company’s methodology for compliance with life as well as economic factors, including unemployment rates, gross
U.S. generally accepted accounting principles. We involved valuation domestic product (GDP), and housing prices, which are considered in
professionals with specialized skills and knowledge who assisted in the model. For corporate loans, key assumptions and inputs included risk

133
ratings, reasonable and supportable forecasts, credit conversion factor for We also assessed the sufficiency of the audit evidence obtained related
unfunded lending commitments, and economic factors, including GDP to the collective ACLL by evaluating the:
and unemployment rates considered in the model. Key assumptions and • cumulative results of the audit procedures
inputs for the qualitative component for both consumer and corporate
• qualitative aspects of the Company’s accounting practices
loan portfolios included the likelihood and severity of a downside
scenario and consideration of uncertainties due to idiosyncratic events • potential bias in the accounting estimates.
as a result of the COVID-19 pandemic. The assessment also included an
evaluation of the conceptual soundness and performance of the PD, LGD,
and EAD models. In addition, auditor judgment was required to evaluate
the sufficiency of audit evidence obtained.
The following are the primary procedures we performed to address We have served as the Company’s auditor since 1969.
this critical audit matter. We evaluated the design and tested the
operating effectiveness of certain internal controls related to the New York, New York
Company’s measurement of the collective ACLL estimate, including (PCAOB ID # 185)
controls over the: February 25, 2022
• approval of the collective ACLL methodologies
• determination of the key assumptions and inputs used to estimate the
quantitative and qualitative components of the collective ACLL
• performance monitoring of the PD, LGD, and EAD models.
We evaluated the Company’s process to develop the collective ACLL
estimate by testing certain sources of data, and assumptions that the
Company used and considered the relevance and reliability of such data,
and assumptions. In addition, we involved credit risk professionals with
specialized skills and knowledge, who assisted in:
• reviewing the Company’s collective ACLL methodologies and
key assumptions for compliance with U.S. generally accepted
accounting principles
• assessing the conceptual soundness and performance testing of the
PD, LGD, and EAD models by inspecting the model documentation to
determine whether the models are suitable for their intended use
• evaluating judgments made by the Company relative to the
development and performance monitoring testing of the PD, LGD, and
EAD models by comparing them to relevant Company-specific metrics
• assessing the economic forecast scenarios through comparison to
publicly available forecasts
• evaluating the methodologies used to develop certain economic forecast
scenarios by comparing them to relevant industry practices
• testing corporate loan risk ratings for a selection of borrowers by
evaluating the financial performance of the borrower, sources of
repayment, and any relevant guarantees or underlying collateral
• evaluating the methodologies used in determining the qualitative
components and the effect of those components on the collective
ACLL compared with relevant credit risk factors and consistency with
credit trends.

134
FINANCIAL STATEMENTS AND NOTES TABLE OF CONTENTS

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statement of Income—
For the Years Ended December 31, 2021, 2020 and 2019 136
Consolidated Statement of Comprehensive Income—
For the Years Ended December 31, 2021, 2020 and 2019 137
Consolidated Balance Sheet—December 31, 2021 and 2020 138
Consolidated Statement of Changes in Stockholders’ Equity—
For the Years Ended December 31, 2021, 2020 and 2019 140
Consolidated Statement of Cash Flows—
For the Years Ended December 31, 2021, 2020 and 2019 142

NOTES TO CONSOLIDATED FINANCIAL

STATEMENTS
Note 1—Summary of Significant Accounting Policies 144 Note 16—Goodwill and Intangible Assets 221
Note 2—Discontinued Operations, Significant Disposals and Note 17—Debt 223
Other Business Exits 157 Note 18—Regulatory Capital 225
Note 3—Operating Segments 159 Note 19—Changes in Accumulated Other Comprehensive
Note 4—Interest Revenue and Expense 160 Income (Loss) (AOCI) 226
Note 20—Preferred Stock 229
Note 5—Commissions and Fees; Administration and Other
Note 21—Securitizations and Variable Interest Entities 230
Fiduciary Fees 161
Note 22—Derivatives 242
Note 6—Principal Transactions 164 Note 23—Concentrations of Credit Risk 258
Note 7—Incentive Plans 165 Note 24—Fair Value Measurement 259
Note 8—Retirement Benefits 169 Note 25—Fair Value Elections 278
Note 9—Income Taxes 180 Note 26—Pledged Assets, Collateral, Guarantees and Commitments 282
Note 10—Earnings per Share 184 Note 27—Contingencies 290
Note 11—Securities Borrowed, Loaned and Note 28—Condensed Consolidating Financial Statements 297
Subject to Repurchase Agreements 185 Note 29—Selected Quarterly Financial Data (Unaudited) 307
Note 12—Brokerage Receivables and Brokerage Payables 188
Note 13—Investments 189
Note 14—Loans 200
Note 15—Allowance for Credit Losses 217

135
CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF INCOME Citigroup Inc. and Subsidiaries

Years ended December 31,
In millions of dollars, except per share amounts 2021 2020 2019
Revenues      
Interest revenue $ 50,475 $ 58,089 $ 76,510
Interest expense 7,981 13,338 28,382
Net interest income $ 42,494 $ 44,751 $ 48,128
Commissions and fees $ 13,672 $ 11,385 $ 11,746
Principal transactions 10,154 13,885 8,892
Administration and other fiduciary fees 3,943 3,472 3,411
Realized gains on sales of investments, net 665 1,756 1,474
Impairment losses on investments:
Impairment losses on investments and other assets (206) (165) (32)
Provision for credit losses on AFS debt securities(1) (3) (3) —
Net impairment losses recognized in earnings $ (209) $ (168) $ (32)
Other revenue $ 1,165 $ 420 $ 1,448
Total non-interest revenues $ 29,390 $ 30,750 $ 26,939
Total revenues, net of interest expense $ 71,884 $ 75,501 $ 75,067
Provisions for credit losses and for benefits and claims      
Provision for credit losses on loans $ (3,103) $ 15,922 $ 8,218
Provision for credit losses on held-to-maturity (HTM) debt securities (3) 7 —
Provision for credit losses on other assets — 7 —
Policyholder benefits and claims 116 113 73
Provision for credit losses on unfunded lending commitments (788) 1,446 92
Total provisions for credit losses and for benefits and claims(2) $ (3,778) $ 17,495 $ 8,383
Operating expenses      
Compensation and benefits $ 25,134 $ 22,214 $ 21,433
Premises and equipment 2,314 2,333 2,328
Technology/communication 7,828 7,383 7,077
Advertising and marketing 1,490 1,217 1,516
Other operating 11,427 11,227 10,429
Total operating expenses $ 48,193 $ 44,374 $ 42,783
Income from continuing operations before income taxes $ 27,469 $ 13,632 $ 23,901
Provision for income taxes 5,451 2,525 4,430
Income from continuing operations $ 22,018 $ 11,107 $ 19,471
Discontinued operations      
Income (loss) from discontinued operations $ 7 $ (20) $ (31)
Benefit for income taxes — — (27)
Income (loss) from discontinued operations, net of taxes $ 7 $ (20) $ (4)
Net income before attribution of noncontrolling interests $ 22,025 $ 11,087 $ 19,467
Noncontrolling interests 73 40 66
Citigroup’s net income $ 21,952 $ 11,047 $ 19,401
Basic earnings per share (3)
     
Income from continuing operations $ 10.21 $ 4.75 $ 8.08
Loss from discontinued operations, net of taxes — (0.01) —
Net income $ 10.21 $ 4.74 $ 8.08
Weighted average common shares outstanding (in millions) 2,033.0 2,085.8 2,249.2
Diluted earnings per share(3)      
Income from continuing operations $ 10.14 $ 4.73 $ 8.04
Loss from discontinued operations, net of taxes — (0.01) —
Net income $ 10.14 $ 4.72 $ 8.04
Adjusted weighted average common shares outstanding (in millions) 2,049.4 2,099.0 2,265.3

(1) This presentation is in accordance with ASC 326, which requires the provision for credit losses on AFS securities to be included in revenue.
(2) This total excludes the provision for credit losses on AFS securities, which is disclosed separately above.
(3) Due to rounding, earnings per share on continuing operations and discontinued operations may not sum to earnings per share on net income.

The Notes to the Consolidated Financial Statements are an integral part of these Consolidated Financial Statements.
136
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Citigroup Inc. and Subsidiaries
Years ended December 31,
In millions of dollars 2021 2020 2019
Citigroup’s net income $21,952 $11,047 $19,401
Add: Citigroup’s other comprehensive income (loss)
Net change in unrealized gains and losses on debt securities, net of taxes(1) $ (3,934) $ 3,585 $ 1,985
Net change in debt valuation adjustment (DVA), net of taxes(1) 232 (475) (1,136)
Net change in cash flow hedges, net of taxes (1,492) 1,470 851
Benefit plans liability adjustment, net of taxes(2) 1,012 (55) (552)
Net change in foreign currency translation adjustment, net of taxes and hedges (2,525) (250) (321)
Net change in excluded component of fair value hedges, net of taxes — (15) 25
Citigroup’s total other comprehensive income (loss) $ (6,707) $ 4,260 $ 852
Citigroup’s total comprehensive income $15,245 $15,307 $20,253
Add: Other comprehensive income (loss) attributable to noncontrolling interests $ (99) $ 26 $ —
Add: Net income attributable to noncontrolling interests 73 40 66
Total comprehensive income $15,219 $15,373 $20,319

(1)  See Note 1 to the Consolidated Financial Statements.

(2) See Note 8 to the Consolidated Financial Statements.

The Notes to the Consolidated Financial Statements are an integral part of these Consolidated Financial Statements.

137
CONSOLIDATED BALANCE SHEET Citigroup Inc. and Subsidiaries
December 31,
In millions of dollars 2021 2020
Assets
Cash and due from banks (including segregated cash and other deposits) $ 27,515 $ 26,349
Deposits with banks, net of allowance 234,518 283,266
Securities borrowed and purchased under agreements to resell (including $216,466 and $185,204 as of December 31, 2021 and 2020,
respectively, at fair value), net of allowance 327,288 294,712
Brokerage receivables, net of allowance 54,340 44,806
Trading account assets (including $133,828 and $168,967 pledged to creditors at December 31, 2021 and 2020, respectively) 331,945 375,079
Investments:
Available-for-sale debt securities (including $9,226 and $5,921 pledged to creditors as of December 31, 2021 and 2020, respectively),
net of allowance 288,522 335,084
Held-to-maturity debt securities (including $1,460 and $547 pledged to creditors as of December 31, 2021 and 2020, respectively),
net of allowance 216,963 104,943
Equity securities (including $1,032 and $1,066 as of December 31, 2021 and 2020, respectively, at fair value) 7,337 7,332
Total investments $ 512,822 $ 447,359
Loans:
Consumer (including $12 and $14 as of December 31, 2021 and 2020, respectively, at fair value) 271,236 288,839
Corporate (including 6,070 and 6,840 as of December 31, 2021 and 2020, respectively, at fair value) 396,531 387,044
Loans, net of unearned income $ 667,767 $ 675,883
Allowance for credit losses on loans (ACLL) (16,455) (24,956)
Total loans, net $ 651,312 $ 650,927
Goodwill 21,299 22,162
Intangible assets (including MSRs of $404 and $336 as of December 31, 2021 and 2020, respectively, at fair value) 4,495 4,747
Other assets (including $12,342 and $14,613 as of December 31, 2021 and 2020, respectively, at fair value), net of allowance 125,879 110,683
Total assets $2,291,413 $2,260,090

The following table presents certain assets of consolidated variable interest entities (VIEs), which are included on the Consolidated Balance Sheet above. The
assets in the table below include those assets that can only be used to settle obligations of consolidated VIEs, presented on the following page, and are in excess
of those obligations. In addition, the assets in the table below include third-party assets of consolidated VIEs only and exclude intercompany balances that
eliminate in consolidation.

December 31,
In millions of dollars 2021 2020
Assets of consolidated VIEs to be used to settle obligations of consolidated VIEs
Cash and due from banks $ 260 $ 281 
Trading account assets 10,038 8,104 
Investments 844 837 
Loans, net of unearned income  
Consumer 34,677 37,561 
Corporate 14,312 17,027 
Loans, net of unearned income $48,989 $54,588 
Allowance for credit losses on loans (ACLL) (2,668) (3,794)
Total loans, net $46,321 $50,794 
Other assets 1,174 43
Total assets of consolidated VIEs to be used to settle obligations of consolidated VIEs $58,637 $60,059 

Statement continues on the next page.

138
CONSOLIDATED BALANCE SHEET (Continued) Citigroup Inc. and Subsidiaries
December 31,
In millions of dollars, except shares and per share amounts 2021 2020
Liabilities
Non-interest-bearing deposits in U.S. offices $ 158,552 $ 126,942 
Interest-bearing deposits in U.S. offices (including $879 and $879 as of December 31, 2021 and 2020, respectively, at fair value) 543,283 503,213 
Non-interest-bearing deposits in offices outside the U.S. 97,270 100,543 
Interest-bearing deposits in offices outside the U.S. (including $787 and $1,079 as of December 31, 2021 and 2020, respectively, at fair value) 518,125 549,973 
Total deposits $1,317,230 $1,280,671 
Securities loaned and sold under agreements to repurchase (including $56,694 and $60,206 as of December 31, 2021 and 2020, respectively,
at fair value) 191,285 199,525 
Brokerage payables (including $3,575 and $6,835 as of December 31, 2021 and 2020, respectively, at fair value), including allowance 61,430 50,484 
Trading account liabilities 161,529 168,027 
Short-term borrowings (including $7,358 and $4,683 as of December 31, 2021 and 2020, respectively, at fair value) 27,973 29,514 
Long-term debt (including $82,609 and $67,063 as of December 31, 2021 and 2020, respectively, at fair value) 254,374 271,686 
Other liabilities 74,920 59,983 
Total liabilities $2,088,741 $2,059,890 

Stockholders’ equity    
Preferred stock ($1.00 par value; authorized shares: 30 million), issued shares: 759,800 as of December 31, 2021 and 779,200 as of
December 31, 2020, at aggregate liquidation value $ 18,995 $ 19,480 
Common stock ($0.01 par value; authorized shares: 6 billion), issued shares: 3,099,651,835 as of December 31, 2021 and 3,099,633,160
as of December 31, 2020 31 31 
Additional paid-in capital 108,003 107,846 
Retained earnings 184,948 168,272 
Treasury stock, at cost: 1,115,296,641 shares as of December 31, 2021 and 1,017,543,951 shares as of December 31, 2020 (71,240) (64,129)
Accumulated other comprehensive income (loss) (AOCI) (38,765) (32,058)
Total Citigroup stockholders’ equity $ 201,972 $ 199,442 
Noncontrolling interests 700 758 
Total equity $ 202,672 $ 200,200 
Total liabilities and equity $2,291,413 $2,260,090 

The following table presents certain liabilities of consolidated VIEs, which are included on the Consolidated Balance Sheet above. The liabilities in the table
below include third-party liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. The liabilities also exclude
amounts where creditors or beneficial interest holders have recourse to the general credit of Citigroup.

December 31,
In millions of dollars 2021 2020
Liabilities of consolidated VIEs for which creditors or beneficial interest holders do not have
recourse to the general credit of Citigroup
Short-term borrowings $ 8,376 $ 9,278 
Long-term debt 12,579 20,405 
Other liabilities 694 463 
Total liabilities of consolidated VIEs for which creditors or beneficial interest holders do not have
recourse to the general credit of Citigroup $21,649 $ 30,146 

The Notes to the Consolidated Financial Statements are an integral part of these Consolidated Financial Statements.

139
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY Citigroup Inc. and Subsidiaries
Years ended December 31,
Amounts Shares
In millions of dollars, except shares in thousands 2021 2020 2019 2021 2020 2019
Preferred stock at aggregate liquidation value
Balance, beginning of year $ 19,480 $ 17,980 $ 18,460 779 719 738
Issuance of new preferred stock 3,300 3,000 1,500 132 120 60
Redemption of preferred stock (3,785) (1,500) (1,980) (151) (60) (79)
Balance, end of year $ 18,995 $ 19,480 $ 17,980 760 779 719
Common stock and additional paid-in capital (APIC)
Balance, beginning of year $107,877 $107,871 $107,953 3,099,633 3,099,603 3,099,567
Employee benefit plans 85 5 (112) 19 30 36
Preferred stock issuance costs (new issuances, net of reclassifications to retained
earnings for redemptions) 25 (4) (4) — — —
Other 47 5 34 — — —
Balance, end of year $108,034 $107,877 $107,871 3,099,652 3,099,633 3,099,603
Retained earnings
Balance, beginning of year $168,272 $165,369 $151,347
Adjustments to opening balance, net of taxes(1)
Financial instruments—credit losses (CECL adoption) — (3,076) —
Variable post-charge-off third-party collection costs — 330 —
Lease accounting, intra-entity transfers of assets — — 151
Adjusted balance, beginning of year $168,272 $162,623 $151,498
Citigroup’s net income 21,952 11,047 19,401
Common dividends(2) (4,196) (4,299) (4,403)
Preferred dividends (1,040) (1,095) (1,109)
Other (primarily reclassifications from APIC for preferred
issuance costs on redemptions) (40) (4) (18)
Balance, end of year $184,948 $168,272 $165,369
Treasury stock, at cost
Balance, beginning of year $ (64,129) $ (61,660) $ (44,370) (1,017,544) (985,480) (731,100)
Employee benefit plans(3) 489 456 585 7,745 8,676 9,872
Treasury stock acquired(4) (7,600) (2,925) (17,875) (105,498) (40,740) (264,252)
Balance, end of year $ (71,240) $ (64,129) $ (61,660) (1,115,297) (1,017,544) (985,480)
Citigroup’s accumulated other comprehensive income (loss)
Balance, beginning of year $ (32,058) $ (36,318) $ (37,170)
Citigroup’s total other comprehensive income (loss) (6,707) 4,260 852
Balance, end of year $ (38,765) $ (32,058) $ (36,318)
Total Citigroup common stockholders’ equity $182,977 $179,962 $175,262 1,984,355 2,082,089 2,114,123
Total Citigroup stockholders’ equity $201,972 $199,442 $193,242
Noncontrolling interests
Balance, beginning of year $ 758 $ 704 $ 854
Transactions between noncontrolling-interest shareholders
and the related consolidated subsidiary — — —
Transactions between Citigroup and the noncontrolling-interest shareholders (10) (4) (169)
Net income attributable to noncontrolling-interest shareholders 73 40 66
Distributions paid to noncontrolling-interest shareholders (10) (2) (40)
Other comprehensive income (loss) attributable to
noncontrolling-interest shareholders (99) 26 —
Other (12) (6) (7)
Net change in noncontrolling interests $ (58) $ 54 $ (150)
Balance, end of year $ 700 $ 758 $ 704
Total equity $202,672 $200,200 $193,946

140
(1) See Note 1 to the Consolidated Financial Statements for additional details.
(2) Common dividends declared were $0.51 per share in the first, second, third and fourth quarters of 2021 and 2020; $0.45 per share in the first and second quarters of 2019 and $0.51 per share in the third and fourth
quarters of 2019.
(3) Includes treasury stock related to (i) certain activity on employee stock option program exercises where the employee delivers existing shares to cover the option exercise, or (ii) under Citi’s employee restricted or
deferred stock programs where shares are withheld to satisfy tax requirements.
(4) Primarily consists of open market purchases under Citi’s Board of Directors-approved common stock repurchase programs.

The Notes to the Consolidated Financial Statements are an integral part of these Consolidated Financial Statements.

141
CONSOLIDATED STATEMENT OF CASH FLOWS Citigroup Inc. and Subsidiaries
Years ended December 31,
In millions of dollars 2021 2020 2019
Cash flows from operating activities of continuing operations
Net income before attribution of noncontrolling interests $ 22,025 $ 11,087  $ 19,467 
Net income attributable to noncontrolling interests 73 40  66 
Citigroup’s net income $ 21,952 $ 11,047  $ 19,401 
Income (loss) from discontinued operations, net of taxes 7 (20) (4)
Income from continuing operations—excluding noncontrolling interests $ 21,945 $ 11,067  $ 19,405 
Adjustments to reconcile net income to net cash provided by (used in) operating activities of continuing operations
Net loss on significant disposals(1) 700 —  — 
Depreciation and amortization 3,964 3,937  3,905 
Deferred income taxes 1,413 (2,333) (610)
Provision for credit losses on loans and unfunded lending commitments (3,891) 17,368  8,310 
Realized gains from sales of investments (665) (1,756) (1,474)
Impairment losses on investments and other assets 206 165  32 
Change in trading account assets 43,059 (98,997) (20,124)
Change in trading account liabilities (6,498) 48,133  (24,411)
Change in brokerage receivables net of brokerage payables 1,412 (3,066) (20,377)
Change in loans HFS (3,809) 1,202  (909)
Change in other assets (2,139) (1,012) 4,724 
Change in other liabilities 6,839 558  1,737 
Other, net (1,287) 4,113  16,955 
Total adjustments $ 39,304 $ (31,688) $ (32,242)
Net cash provided by (used in) operating activities of continuing operations $ 61,249 $ (20,621) $ (12,837)
Cash flows from investing activities of continuing operations
Change in securities borrowed and purchased under agreements to resell $ (32,576) $ (43,390) $ 19,362
Change in loans (1,173) 14,249 (22,466)
Proceeds from sales and securitizations of loans 2,918 1,495 2,878
Purchases of investments (359,158) (334,900) (274,491)
Proceeds from sales of investments 126,728 146,285 137,173
Proceeds from maturities of investments 142,100 124,229 119,051
Capital expenditures on premises and equipment and capitalized software (4,119) (3,446) (5,336)
Proceeds from sales of premises and equipment, subsidiaries and affiliates and repossessed assets 190 50 259
Other, net 185 116 196
Net cash used in investing activities of continuing operations $(124,905) $ (95,312) $ (23,374)
Cash flows from financing activities of continuing operations
Dividends paid $ (5,198) $ (5,352) $ (5,447)
Issuance of preferred stock 3,300 2,995  1,496 
Redemption of preferred stock (3,785) (1,500) (1,980)
Treasury stock acquired (7,601) (2,925) (17,571)
Stock tendered for payment of withholding taxes (337) (411) (364)
Change in securities loaned and sold under agreements to repurchase (8,240) 33,186  (11,429)
Issuance of long-term debt 70,658 76,458  59,134 
Payments and redemptions of long-term debt (74,950) (63,402) (51,029)
Change in deposits 44,966 210,081  57,420 
Change in short-term borrowings (1,541) (15,535) 12,703 

Statement continues on the next page.

142
CONSOLIDATED STATEMENT OF CASH FLOWS (Continued) Citigroup Inc. and Subsidiaries
Years ended December 31,
In millions of dollars 2021 2020 2019
Net cash provided by financing activities of continuing operations $ 17,272 $ 233,595 $ 42,933
Effect of exchange rate changes on cash and due from banks $ (1,198) $ (1,966) $ (908)
Change in cash, due from banks and deposits with banks (47,582) 115,696 5,814
Cash, due from banks and deposits with banks at beginning of year 309,615 193,919 188,105
Cash, due from banks and deposits with banks at end of year $ 262,033 $ 309,615 $ 193,919
Cash and due from banks (including segregated cash and other deposits) $ 27,515 $ 26,349 $ 23,967
Deposits with banks, net of allowance 234,518 283,266 169,952
Cash, due from banks and deposits with banks at end of year $ 262,033 $ 309,615 $ 193,919

Supplemental disclosure of cash flow information for continuing operations

Cash paid during the year for income taxes $ 4,028 $ 4,797 $ 4,888
Cash paid during the year for interest 7,143 12,094 27,901
Non-cash investing activities(1)(2)
Decrease in net loans associated with significant disposals reclassified to HFS $ 9,945 $ — $ —
Transfers to loans HFS (Other assets) from loans 7,414 2,614 5,500
Non-cash financing activities(1)
Decrease in long-term debt associated with significant disposals reclassified to HFS $ 479 $ — $ —
Decrease in deposits associated with significant disposals reclassified to HFS 8,407 — —

(1) See Note 2 to the Consolidated Financial Statements for further information on significant disposals.
(2) Operating and finance lease right-of-use assets and lease liabilities represent non-cash investing and financing activities, respectively, and are not included in the non-cash investing activities presented here.
See Note 26 to the Consolidated Financial Statements for more information and balances.

The Notes to the Consolidated Financial Statements are an integral part of these Consolidated Financial Statements.

143
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES All entities not deemed to be VIEs with which the Company has
involvement are evaluated for consolidation under other subtopics of
Throughout these Notes, “Citigroup,” “Citi” and the “Company” refer to
ASC 810. See Note 21 to the Consolidated Financial Statements for more
Citigroup Inc. and its consolidated subsidiaries.
detailed information.
Certain reclassifications and updates have been made to the prior
periods’ financial statements and notes to conform to the current Foreign Currency Translation
period’s presentation. Assets and liabilities of Citi’s foreign operations are translated from their
respective functional currencies into U.S. dollars using period-end spot
Principles of Consolidation
foreign exchange rates. The effects of those translation adjustments are
The Consolidated Financial Statements include the accounts of Citigroup
reported in Accumulated other comprehensive income (loss), a component
and its subsidiaries prepared in accordance with U.S. generally accepted
of stockholders’ equity, net of any related hedge and tax effects, until realized
accounting principles (GAAP). The Company consolidates subsidiaries in
upon sale or substantial liquidation of the foreign entity, at which point
which it holds, directly or indirectly, more than 50% of the voting rights
such amounts are reclassified into earnings. Revenues and expenses of Citi’s
or where it exercises control. Entities in which the Company holds 20%
foreign operations are translated monthly from their respective functional
to 50% of the voting rights and/or has the ability to exercise significant
currencies into U.S. dollars at amounts that approximate weighted average
influence, other than investments of designated venture capital subsidiaries
exchange rates.
or investments accounted for at fair value under the fair value option, are
For transactions that are denominated in a currency other than the
accounted for under the equity method, and the pro rata share of their
functional currency, including transactions denominated in the local
income (loss) is included in Other revenue. Income from investments in
currencies of foreign operations that use the U.S. dollar as their functional
less-than-20%-owned companies is recognized when dividends are received.
currency, the effects of changes in exchange rates are primarily included
As discussed in more detail in Note 21 to the Consolidated Financial
in Principal transactions, along with the related effects of any economic
Statements, Citigroup also consolidates entities deemed to be variable interest
hedges. Instruments used to hedge foreign currency exposures include
entities when Citigroup is determined to be the primary beneficiary. Gains
foreign currency forward, option and swap contracts and, in certain
and losses on the disposition of branches, subsidiaries, affiliates, buildings
instances, designated issues of non-U.S.-dollar debt. Foreign operations
and other investments are included in Other revenue.
in countries with highly inflationary economies designate the U.S. dollar
Citibank as their functional currency, with the effects of changes in exchange rates
Citibank, N.A. (Citibank) is a commercial bank and indirect wholly owned primarily included in Other revenue.
subsidiary of Citigroup. Citibank’s principal offerings include investment
Investment Securities
banking, commercial banking, cash management, trade finance and
Investments include debt and equity securities. Debt securities include bonds,
e-commerce; private banking products and services; consumer finance, credit
notes and redeemable preferred stocks, as well as certain loan-backed and
cards, and mortgage lending; and retail banking products and services.
structured securities that are subject to prepayment risk. Equity securities
Variable Interest Entities (VIEs) include common and nonredeemable preferred stock.
An entity is a variable interest entity (VIE) if it meets either of the
Debt Securities
criteria outlined in Accounting Standards Codification (ASC) Topic 810,
Consolidation, which are (i) the entity has equity that is insufficient to • Debt securities classified as “held-to-maturity” (HTM) are securities that
permit the entity to finance its activities without additional subordinated the Company has both the ability and the intent to hold until maturity
financial support from other parties, or (ii) the entity has equity investors and are carried at amortized cost. Interest income on such securities is
that cannot make significant decisions about the entity’s operations or that included in Interest revenue.
do not absorb their proportionate share of the entity’s expected losses or • Debt securities classified as “available-for-sale” (AFS) are carried at
expected returns. fair value with changes in fair value reported in Accumulated other
The Company consolidates a VIE when it has both the power to direct the comprehensive income (loss), a component of stockholders’ equity, net
activities that most significantly impact the VIE’s economic performance of applicable income taxes and hedges. Interest income on such securities
and a right to receive benefits or the obligation to absorb losses of the entity is included in Interest revenue.
that could be potentially significant to the VIE (that is, Citi is the primary
beneficiary). In addition to variable interests held in consolidated VIEs,
the Company has variable interests in other VIEs that are not consolidated
because the Company is not the primary beneficiary.
All unconsolidated VIEs are monitored by the Company to assess whether
any events have occurred to cause its primary beneficiary status to change.

144
Equity Securities Physical commodities inventory is carried at the lower of cost or market
with related losses reported in Principal transactions, except when included
• Marketable equity securities are measured at fair value with changes in in a hedge relationship. Realized gains and losses on sales of commodities
fair value recognized in earnings.
inventory are included in Principal transactions. Investments in
• Non-marketable equity securities are measured at fair value with unallocated precious metals accounts (gold, silver, platinum and palladium)
changes in fair value recognized in earnings unless (i) the measurement are accounted for as hybrid instruments containing a debt host contract and
alternative is elected or (ii) the investment represents Federal Reserve an embedded non-financial derivative instrument indexed to the price of the
Bank and Federal Home Loan Bank stock or certain exchange seats that relevant precious metal. The embedded derivative instrument and debt host
continue to be carried at cost. Non-marketable equity securities under the contract are carried at fair value under the fair value option, as described in
measurement alternative are carried at cost less impairment (if any), plus Note 25 to the Consolidated Financial Statements.
or minus changes resulting from observed prices for orderly transactions Derivatives used for trading purposes include interest rate, currency, equity,
for the identical or a similar investment of the same issuer. credit and commodity swap agreements, options, caps and floors, warrants,
• Certain investments that would otherwise have been accounted for and financial and commodity futures and forward contracts. Derivative asset
using the equity method are carried at fair value with changes in fair and liability positions are presented net by counterparty on the Consolidated
value recognized in earnings, since the Company elected to apply fair Balance Sheet when a valid master netting agreement exists and the other
value accounting. conditions set out in ASC Topic 210-20, Balance Sheet—Offsetting, are met.
For investments in debt securities classified as held-to-maturity (HTM) See Note 22 to the Consolidated Financial Statements.
or available-for-sale (AFS), the accrual of interest income is suspended for The Company uses a number of techniques to determine the fair value
investments that are in default or for which it is likely that future interest of trading assets and liabilities, which are described in Note 24 to the
payments will not be made as scheduled. Consolidated Financial Statements.
Debt securities not measured at fair value through earnings include Securities Borrowed and Securities Loaned
securities held in HTM or AFS, and equity securities accounted for under Securities borrowing and lending transactions do not constitute a sale
the Measurement Alternative or equity method and Federal Reserve Bank, of the underlying securities for accounting purposes and are treated as
Federal Home Loan Bank stock and certain exchange seats. These securities collateralized financing transactions. Such transactions are recorded at the
are subject to evaluation for impairment as described in Note 15 to the amount of proceeds advanced or received plus accrued interest. As described
Consolidated Financial Statements for HTM securities and in Note 13 for AFS, in Note 25 to the Consolidated Financial Statements, the Company has
Measurement Alternative and equity method investments. Realized gains elected to apply fair value accounting to a number of securities borrowing
and losses on sales of investments are included in earnings, primarily on a and lending transactions. Fees received or paid for all securities borrowing
specific identification basis. and lending transactions are recorded in Interest revenue or Interest
The Company uses a number of valuation techniques for investments expense at the contractually specified rate.
carried at fair value, which are described in Note 24 to the Consolidated Where the conditions of ASC 210-20-45-1, Balance Sheet—Offsetting:
Financial Statements. Right of Setoff Conditions, are met, securities borrowing and lending
Trading Account Assets and Liabilities transactions are presented net on the Consolidated Balance Sheet.
Trading account assets include debt and marketable equity securities, The Company monitors the fair value of securities borrowed or loaned on
derivatives in a receivable position, residual interests in securitizations a daily basis and obtains or posts additional collateral in order to maintain
and physical commodities inventory. In addition, as described in Note 25 contractual margin protection.
to the Consolidated Financial Statements, certain assets that Citigroup has As described in Note 24 to the Consolidated Financial Statements, the
elected to carry at fair value under the fair value option, such as loans and Company uses a discounted cash flow technique to determine the fair value
purchased guarantees, are also included in Trading account assets. of securities lending and borrowing transactions.
Trading account liabilities include securities sold, not yet purchased Repurchase and Resale Agreements
(short positions) and derivatives in a net payable position, as well as certain Securities sold under agreements to repurchase (repos) and securities
liabilities that Citigroup has elected to carry at fair value (as described in purchased under agreements to resell (reverse repos) do not constitute a sale
Note 25 to the Consolidated Financial Statements). (or purchase) of the underlying securities for accounting purposes and are
Other than physical commodities inventory, all trading account assets treated as collateralized financing transactions. As described in Note 25 to the
and liabilities are carried at fair value. Revenues generated from trading Consolidated Financial Statements, the Company has elected to apply fair
assets and trading liabilities are generally reported in Principal transactions value accounting to certain of such transactions, with changes in fair value
and include realized gains and losses as well as unrealized gains and losses reported in earnings. Any transactions for which fair value accounting has
resulting from changes in the fair value of such instruments. Interest income not been elected are recorded at the amount of cash advanced or received
on trading assets is recorded in Interest revenue reduced by interest expense plus accrued interest. Irrespective of whether the Company has elected fair
on trading liabilities. value accounting, interest paid or received on all repo and reverse repo
transactions is recorded in Interest expense or Interest revenue at the
contractually specified rate.

145
 Where the conditions of ASC 210-20-45-11, Balance Sheet—Offsetting: varies by product and/or region. In most cases, a minimum number of
Repurchase and Reverse Repurchase Agreements, are met, repos and payments (ranging from one to six) is required, while in other cases the loan
reverse repos are presented net on the Consolidated Balance Sheet. is never returned to accrual status. For regulated bank entities, such modified
The Company’s policy is to take possession of securities purchased under loans are returned to accrual status if a credit evaluation at the time of, or
reverse repurchase agreements. The Company monitors the fair value of subsequent to, the modification indicates the borrower is able to meet the
securities subject to repurchase or resale on a daily basis and obtains or posts restructured terms, and the borrower is current and has demonstrated a
additional collateral in order to maintain contractual margin protection. reasonable period of sustained payment performance (minimum six months
As described in Note 24 to the Consolidated Financial Statements, the of consecutive payments).
Company uses a discounted cash flow technique to determine the fair value For U.S. consumer loans, generally one of the conditions to qualify for
of repo and reverse repo transactions. modification (other than for loan modifications made through the CARES
Act relief provisions or banking agency guidance for pandemic-related
Loans issues) is that a minimum number of payments (typically ranging from
Loans are reported at their outstanding principal balances net of any one to three) must be made. Upon modification, the loan is re-aged to
unearned income and unamortized deferred fees and costs, except for credit current status. However, re-aging practices for certain open-ended consumer
card receivable balances, which include accrued interest and fees. Loan loans, such as credit cards, are governed by Federal Financial Institutions
origination fees and certain direct origination costs are generally deferred Examination Council (FFIEC) guidelines. For open-ended consumer loans
and recognized as adjustments to income over the lives of the related loans. subject to FFIEC guidelines, one of the conditions for the loan to be re-aged
As described in Note 25 to the Consolidated Financial Statements, Citi has to current status is that at least three consecutive minimum monthly
elected fair value accounting for certain loans. Such loans are carried at fair payments, or the equivalent amount, must be received. In addition, under
value with changes in fair value reported in earnings. Interest income on FFIEC guidelines, the number of times that such a loan can be re-aged is
such loans is recorded in Interest revenue at the contractually specified rate. subject to limitations (generally once in 12 months and twice in five years).
Loans that are held-for-investment are classified as Loans, net of Furthermore, FHA and Department of Veterans Affairs (VA) loans may only be
unearned income on the Consolidated Balance Sheet, and the related cash modified under those respective agencies’ guidelines, and payments are not
flows are included within the cash flows from investing activities category always required in order to re-age a modified loan to current.
in the Consolidated Statement of Cash Flows on the line Change in loans.
However, when the initial intent for holding a loan has changed from Consumer Charge-Off Policies
held-for-investment to held-for-sale (HFS), the loan is reclassified to HFS, but Citi’s charge-off policies follow the general guidelines below:
the related cash flows continue to be reported in cash flows from investing
activities in the Consolidated Statement of Cash Flows on the line Proceeds
• Unsecured installment loans are charged off at 120 days contractually
past due.
from sales and securitizations of loans.
• Unsecured revolving loans and credit card loans are charged off at 180
Consumer Loans days contractually past due.
Consumer loans represent loans and leases managed primarily by the Global • Loans secured with non-real estate collateral are written down to
Consumer Banking (GCB) businesses and Corporate/Other. the estimated value of the collateral, less costs to sell, at 120 days
Consumer Non-accrual and Re-aging Policies contractually past due.
As a general rule, interest accrual ceases for installment and real estate (both • Real estate-secured loans are written down to the estimated value of the
open- and closed-end) loans when payments are 90 days contractually past property, less costs to sell, at 180 days contractually past due.
due. For credit cards and other unsecured revolving loans, however, Citi • Real estate-secured loans are charged off no later than 180 days
generally accrues interest until payments are 180 days past due. As a result contractually past due if a decision has been made not to foreclose
of OCC guidance, home equity loans in regulated bank entities are classified on the loans.
as non-accrual if the related residential first mortgage is 90 days or more • Unsecured loans in bankruptcy are charged off within 60 days of
past due. Also as a result of OCC guidance, mortgage loans in regulated bank notification of filing by the bankruptcy court or in accordance with Citi’s
entities are classified as non-accrual within 60 days of notification that the charge-off policy, whichever occurs earlier.
borrower has filed for bankruptcy, with the exception of Federal Housing
Administration (FHA)-insured loans.
• Real estate-secured loans in bankruptcy, other than FHA-insured loans,
are written down to the estimated value of the property, less costs to sell,
Loans that have been modified to grant a concession to a borrower
within 60 days of notification that the borrower has filed for bankruptcy or
in financial difficulty may not be accruing interest at the time of the
in accordance with Citi’s charge-off policy, whichever is earlier.
modification. The policy for returning such modified loans to accrual status

146
Corporate Loans portfolios. ASC 326 defines the ACL as a valuation account that is deducted
Corporate loans represent loans and leases managed by Institutional Clients from the amortized cost of a financial asset to present the net amount that
Group (ICG). Corporate loans are identified as impaired and placed on a management expects to collect on the financial asset over its expected life. All
cash (non-accrual) basis when it is determined, based on actual experience financial assets carried at amortized cost are in the scope of ASC 326, while
and a forward-looking assessment of the collectability of the loan in full, that assets measured at fair value are excluded. See Note 13 to the Consolidated
the payment of interest or principal is doubtful or when interest or principal Financial Statements for a discussion of impairment on available-for-sale
is 90 days past due, except when the loan is well collateralized and in the (AFS) securities.
process of collection. Any interest accrued on impaired corporate loans and Increases and decreases to the allowances are recorded in Provisions
leases is reversed at 90 days past due and charged against current earnings, for credit losses. The CECL methodology utilizes a lifetime expected credit
and interest is thereafter included in earnings only to the extent actually loss (ECL) measurement objective for the recognition of credit losses for
received in cash. When there is doubt regarding the ultimate collectability held-for-investment (HFI) loans, held-to-maturity (HTM) debt securities,
of principal, all cash receipts are thereafter applied to reduce the recorded receivables and other financial assets measured at amortized cost at the time
investment in the loan. the financial asset is originated or acquired. Within the life of a loan or other
Impaired corporate loans and leases are written down to the extent that financial asset, the methodology generally results in the earlier recognition of
principal is deemed to be uncollectible. Impaired collateral-dependent loans the provision for credit losses and the related ACL than prior U.S. GAAP.
and leases, where repayment is expected to be provided solely by the sale Estimation of ECLs requires Citi to make assumptions regarding the
of the underlying collateral and there are no other available and reliable likelihood and severity of credit loss events and their impact on expected
sources of repayment, are written down to the lower of carrying value or cash flows, which drive the probability of default (PD), loss given default
collateral value. Cash-basis loans are returned to accrual status when (LGD) and exposure at default (EAD) models and, where Citi discounts the
all contractual principal and interest amounts are reasonably assured of ECL, using discounting techniques for certain products. Where the asset’s life
repayment and there is a sustained period of repayment performance in extends beyond the R&S forecast period, Citi considers historical experience
accordance with the contractual terms. over the remaining life of the assets in estimating the ACL.
Citi uses a multitude of variables in its macroeconomic forecast as part
Loans Held-for-Sale of its calculation of both the qualitative and quantitative components of
Corporate and consumer loans that have been identified for sale are classified the ACL, including both domestic and international variables for its global
as loans HFS and included in Other assets. The practice of Citi’s U.S. prime portfolios and exposures. Citi’s forecasts of the U.S. unemployment rate
mortgage business has been to sell substantially all of its conforming loans. and U.S. Real GDP growth rate represent the key macroeconomic variables
As such, U.S. prime mortgage conforming loans are classified as HFS and that most significantly affect its estimate of its consumer and corporate
the fair value option is elected at origination, with changes in fair value ACLs. Under the quantitative base scenario, Citi’s 4Q21 forecasts are for U.S.
recorded in Other revenue. With the exception of those loans for which the unemployment to continue to improve as the U.S. continues to move past the
fair value option has been elected, HFS loans are accounted for at the lower of peak of the pandemic-related health and economic crisis.
cost or market value, with any write-downs or subsequent recoveries charged The following are the main factors and interpretations that Citi considers
to Other revenue. The related cash flows are classified in the Consolidated when estimating the ACL under the CECL methodology:
Statement of Cash Flows in the cash flows from operating activities category
on the line Change in loans held-for-sale. • The most important reasons for the change in the ACL during 2021 were
the ACL releases resulting from the recovery from the pandemic.
Allowances for Credit Losses (ACL) • CECL reserves are estimated over the contractual term of the financial
Commencing January 1, 2020, Citi adopted Accounting Standards Update asset, which is adjusted for expected prepayments. Expected extensions are
(ASC) 326, Financial Instruments—Credit Losses, using the methodologies generally not considered unless the option to extend the loan cannot be
described below. For information about Citi’s accounting for loan losses prior canceled unilaterally by Citi. Modifications are also not considered, unless
to January 1, 2020, see “Superseded Accounting Principles” below. Citi has a reasonable expectation that it will execute a troubled debt
The current expected credit losses (CECL) methodology is based on restructuring (TDR).
relevant information about past events, including historical experience,
current conditions and reasonable and supportable (R&S) forecasts that
affect the collectability of the reported financial asset balances. If the asset’s
life extends beyond the R&S forecast period, then historical experience is
considered over the remaining life of the assets in the ACL. The resulting ACL
is adjusted in each subsequent reporting period through Provisions for credit
losses in the Consolidated Statement of Income to reflect changes in history,
current conditions and forecasts as well as changes in asset positions and

147
• Credit enhancements that are not freestanding (such as those that • Citi uses the most recent available information to inform its
are included in the original terms of the contract or those executed in macroeconomic forecasts, allowing sufficient time for analysis of the
conjunction with the lending transaction) are considered loss mitigants results and corresponding approvals. Key variables are reviewed for
for purposes of CECL reserve estimation. significant changes through year end and changes to portfolio positions
• For unconditionally cancelable accounts such as credit cards, reserves are reflected in the ACL.
are based on the expected life of the balance as of the evaluation date • Reserves are calculated at an appropriately granular level and on a pooled
(assuming no further charges) and do not include any undrawn basis where financial assets share risk characteristics. At a minimum,
commitments that are unconditionally cancelable. Reserves are included reserves are calculated at a portfolio level (product and country). Where a
for undrawn commitments for accounts that are not unconditionally financial asset does not share risk characteristics with any of the pools, it
cancelable (such as letters of credit and corporate loan commitments, is evaluated for credit losses individually.
home equity lines of credit (HELOCs), undrawn mortgage loan
commitments and financial guarantees). Quantitative and Qualitative Components of the ACL
• CECL models are designed to be economically sensitive. They utilize the The loss likelihood and severity models use both internal and external
macroeconomic forecasts provided by Citi’s economic forecasting team information and are sensitive to forecasts of different macroeconomic
(EFT) that are approved by senior management. Analysis is performed conditions. For the quantitative component, Citi uses a single forward-
and documented to determine the necessary qualitative management looking macroeconomic forecast, complemented by the qualitative
adjustment (QMA) to capture forward-looking macroeconomic component that reflects economic uncertainty due to a different possible
expectations and model uncertainty. more adverse scenario for estimating the ACL. Estimates of these ECLs
are based upon (i) Citigroup’s internal system of credit risk ratings; (ii)
• The portion of the forecast that reflects the EFT’s reasonable and historical default and loss data, including comprehensive internal history
supportable (R&S) period indicates the maximum length of time its
and rating agency information regarding default rates and internal data on
models can produce a R&S macroeconomic forecast, after which mean
the severity of losses in the event of default; and (iii) a R&S forecast of future
reversion reflecting historical loss experience is used for the remaining
macroeconomic conditions. ECL is determined primarily by utilizing models
life of the loan to estimate expected credit losses. For the loss forecast,
for the borrowers’ PD, LGD and EAD. Adjustments may be made to this
businesses consume the macroeconomic forecast as determined to be
data, including (i) statistically calculated estimates to cover the historical
appropriate and justifiable.
fluctuation of the default rates over the credit cycle, the historical variability
Citi’s ability to forecast credit losses over the reasonable and supportable of loss severity among defaulted loans and the degree to which there are large
(R&S) period is based on the ability to forecast economic activity over a obligor concentrations in the global portfolio, and (ii) adjustments made
reasonable and supportable time window. The R&S period reflects the overall for specifically known items, such as current environmental factors and
ability to have a reasonable and supportable forecast of credit loss based on credit trends.
economic forecasts. Any adjustments needed to the modeled expected losses in the quantitative
calculations are addressed through a qualitative adjustment. The qualitative
• The loss models consume all or a portion of the R&S economic forecast adjustment considers, among other things: the uncertainty of forward-
and then revert to historical loss experience. The R&S forecast period for
looking scenarios based on the likelihood and severity of a possible recession;
consumer loans is 13 quarters and, in most cases, reverts to historically
the uncertainty of economic conditions related to an alternative downside
based loss experience either immediately or using a straight-line approach
scenario; certain portfolio characteristics and concentrations; collateral
thereafter, while the R&S period for corporate loans is nine quarters
coverage; model limitations; idiosyncratic events; and other relevant criteria
with an additional straight-line reversion period of three quarters for
under banking supervisory guidance for loan loss reserves. The qualitative
ECL parameters.
adjustment also reflects the estimated impact of the pandemic on the
• The ACL incorporates provisions for accrued interest on products that economic forecasts and the impact on credit loss estimates. The total ACL is
are not subject to a non-accrual and timely write-off policy (e.g., credit composed of the quantitative and qualitative components.
cards, etc.).
• The reserves for TDRs are calculated using the discounted cash flow
method and considers appropriate macroeconomic forecast data for the
exposure type. For TDR loans that are collateral dependent, the ACL is
based on the fair value of the collateral.

148
Consumer Loans Corporate Loans and HTM Securities
For consumer loans, most portfolios including North America cards, Citi records allowances for credit losses on all financial assets carried at
mortgages and personal installment loans (PILs) are covered by the PD, amortized cost that are in the scope of CECL, including corporate loans
LGD and EAD loss forecasting models. Some smaller international portfolios classified as HFI and HTM debt securities. Discounting techniques are applied
are covered by econometric models where the gross credit loss (GCL) rate is for corporate loans classified as HFI and HTM securities and non-accrual/
forecasted. The modeling of all retail products is performed by examining TDR loan exposures. All cash flows are fully discounted to the reporting date.
risk drivers for a given portfolio; these drivers relate to exposures with similar The ACL includes Citi’s estimate of all credit losses expected to be incurred
credit risk characteristics and consider past events, current conditions and over the estimated full contractual life of the financial asset. The contractual
R&S forecasts. Under the PD x LGD x EAD approach, GCLs and recoveries life of the financial asset does not include expected extensions, renewals or
are captured on an undiscounted basis. Citi incorporates expected recoveries modifications, except for instances where the Company reasonably expects
on loans into its reserve estimate, including expected recoveries on assets to extend the tenor of the financial asset pursuant to a future TDR. Where
previously written off. Citi has an unconditional option to extend the contractual term, Citi does
CECL defines the exposure’s expected life as the remaining contractual not consider the potential extension in determining the contractual term;
maturity including any expected prepayments. Subsequent changes to the however, where the borrower has the sole right to exercise the extension
contractual terms that are the result of a re-underwriting are not included in option without Citi’s approval, Citi does consider the potential extension in
the loan’s expected CECL life. determining the contractual term. The decrease in credit losses under CECL
Citi does not establish reserves for the uncollectible accrued interest on at the date of adoption on January 1, 2020, compared with the prior incurred
non-revolving consumer products, such as mortgages and installment loans, loss methodology, was largely due to more precise contractual maturities
which are subject to a non-accrual and timely write-off policy. As such, only that resulted in shorter remaining tenors, the incorporation of recoveries
the principal balance is subject to the CECL reserve methodology and interest and use of more specific historical loss data based on an increase in portfolio
does not attract a further reserve. FAS 91-deferred origination costs and fees segmentation across industries and geographies.
related to new account originations are amortized within a 12-month period, The Company primarily bases its ACL on models that assess the likelihood
and an ACL is provided for components in the scope of the ASC. and severity of credit events and their impact on cash flows under R&S
Separate valuation allowances are determined for impaired smaller- forecasted economic scenarios. Allowances consider the probability of the
balance homogeneous loans whose terms have been modified in a TDR. borrower’s default, the loss the Company would incur upon default and the
Long-term modification programs, and short-term (less than 12 months) borrower’s exposure at default. Such models discount the present value of all
modifications that provide concessions (such as interest rate reductions) future cash flows, using the asset’s effective interest rate (EIR). Citi applies a
to borrowers in financial difficulty, are reported as TDRs. In addition, loan more simplified approach based on historical loss rates to certain exposures
modifications that involve a trial period are reported as TDRs at the start recorded in Other assets and certain loan exposures in the private bank.
of the trial period. The ACL for TDRs is determined using a discounted cash The Company considers the risk of nonpayment to be zero for U.S.
flow (DCF) approach. When a DCF approach is used, the initial allowance Treasuries and U.S. government-sponsored agency guaranteed mortgage-
for ECLs is calculated as the expected contractual cash flows discounted at backed securities (MBS) and, as such, Citi does not have an ACL for these
the loan’s original effective interest rate. DCF techniques are applied only for securities. For all other HTM debt securities, ECLs are estimated using
consumer loans classified as TDR loan exposures. PD models and discounting techniques, which incorporate assumptions
For credit cards, Citi uses the payment rate approach, which leverages regarding the likelihood and severity of credit losses. For structured securities,
payment rate curves, to determine the payments that should be applied to specific models use relevant assumptions for the underlying collateral type. A
liquidate the end-of-period balance (CECL balance) in the estimation of EAD. discounting approach is applied to HTM direct obligations of a single issuer,
The payment rate approach uses customer payment behavior (payment rate) similar to that used for corporate HFI loans.
to establish the portion of the CECL balance that will be paid each month.
These payment rates are defined as the percentage of principal payments Other Financial Assets with Zero Expected Credit Losses
received in the respective month divided by the prior month’s billed principal For certain financial assets, zero expected credit losses will be recognized
balance. The liquidation (CECL payment) amount for each forecast period where the expectation of nonpayment of the amortized cost basis is zero,
is determined by multiplying the CECL balance by that period’s forecasted based on there being no history of loss and the nature of the receivables.
payment rate. The cumulative sum of these payments less the CECL balance
produces the balance liquidation curve. Citi does not apply a non-accrual
policy to credit card receivables; rather, they are subject to full charge-
off at 180 days past due. As such, the entire customer balance up until
write-off, including accrued interest and fees, will be subject to the CECL
reserve methodology.

149
Secured Financing Transactions of the initial ACL at the pool level. The amount of the initial ACL for a PCD
Most of Citi’s reverse repurchase agreements, securities borrowing asset represents the portion of the total discount at acquisition that relates
arrangements and margin loans require that the borrower continually adjust to credit and is recognized as a “gross-up” of the purchase price to arrive at
the amount of the collateral securing Citi’s interest, primarily resulting from the PCD asset’s (or pool’s) amortized cost. Any difference between the unpaid
changes in the fair value of such collateral. In such arrangements, ACLs principal balance and the amortized cost is considered to be related to non-
are recorded based only on the amount by which the asset’s amortized cost credit factors and results in a discount or premium, which is amortized to
basis exceeds the fair value of the collateral. No ACLs are recorded where the interest income over the life of the individual asset (or pool). Direct expenses
fair value of the collateral is equal to or exceeds the asset’s amortized cost incurred related to the acquisition of PCD assets and other assets and
basis, as Citi does not expect to incur credit losses on such well-collateralized liabilities in a business combination are expensed as incurred. Subsequent
exposures. For certain margin loans presented in Loans on the Consolidated accounting for acquired PCD assets is the same as the accounting for
Balance Sheet, credit losses are estimated using the same approach as originated assets; changes in the allowance are recorded in Provisions for
corporate loans. credit losses.

Accrued Interest Consumer

CECL permits entities to make an accounting policy election not to reserve Citi does not purchase whole portfolios of PCD assets in its retail businesses.
for interest, if the entity has a policy in place that will result in timely reversal However, there may be a small portion of a purchased portfolio that is
or write-off of interest. However, when a non-accrual or timely charge-off identified as PCD at the purchase date. Interest income recognition does
policy is not applied, an ACL is recognized on accrued interest. For HTM debt not vary between PCD and non-PCD assets. A consumer financial asset is
securities, Citi established a non-accrual policy that results in timely write-off considered to be more-than-insignificantly credit deteriorated if it is more
of accrued interest. For corporate loans, where a timely charge-off policy than 30 days past due at the purchase date.
is used, Citi has elected to recognize an ACL on accrued interest receivable.
The LGD models for corporate loans include an adjustment for estimated Corporate
accrued interest. Citi generally classifies wholesale loans and debt securities classified as
HTM or AFS as PCD when both of the following criteria are met: (i) the
Reasonably Expected TDRs purchase price discount is at least 10% of par and (ii) the purchase date is
For corporate loans, the reasonable expectation of TDR concept requires more than 90 days after the origination or issuance date. Citi classifies HTM
that the contractual life over which ECLs are estimated be extended when beneficial interests rated AA- and lower obtained at origination from certain
a TDR that results in a tenor extension is reasonably expected. Reasonably securitization transactions as PCD when there is a significant difference (i.e.,
expected TDRs are included in the life of the asset. A discounting technique 10% or greater) between contractual cash flows, adjusted for prepayments,
or collateral-dependent practical expedient is used for non-accrual and TDR and expected cash flows at the date of recognition.
loan exposures that do not share risk characteristics with other loans and are
individually assessed. Loans modified in accordance with the CARES Act and Reserve Estimates and Policies
bank regulatory guidance are not classified as TDRs. Management provides reserves for an estimate of lifetime ECLs in the
funded loan portfolio on the Consolidated Balance Sheet in the form of an
Purchased Credit-Deteriorated (PCD) Assets ACL. These reserves are established in accordance with Citigroup’s credit
ASC 326 requires entities that have acquired financial assets (such as loans reserve policies, as approved by the Audit Committee of the Citigroup Board
and HTM securities) with an intent to hold, to evaluate whether those assets of Directors. Citi’s Chief Risk Officer and Chief Financial Officer review the
have experienced a more-than-insignificant deterioration in credit quality adequacy of the credit loss reserves each quarter with risk management and
since origination. These assets are subject to specialized accounting at initial finance representatives for each applicable business area. Applicable business
recognition under CECL. Subsequent measurement of PCD assets will remain areas include those having classifiably managed portfolios, where internal
consistent with other purchased or originated assets, i.e., non-PCD assets. credit risk ratings are assigned (primarily ICG) and delinquency managed
CECL introduces the notion of PCD assets, which replaces purchased credit portfolios (primarily GCB) or modified consumer loans, where concessions
impaired (PCI) accounting under prior U.S. GAAP. were granted due to the borrowers’ financial difficulties. The aforementioned
CECL requires the estimation of credit losses to be performed on a pool representatives for these business areas present recommended reserve
basis unless a PCD asset does not share characteristics with any pool. If balances for their funded and unfunded lending portfolios along with
certain PCD assets do not meet the conditions for aggregation, those PCD supporting quantitative and qualitative data discussed below:
assets should be accounted for separately. This determination must be
made at the date the PCD asset is purchased. In estimating ECLs from day
2 onward, pools can potentially be reassembled based upon similar risk
characteristics. When PCD assets are pooled, Citi determines the amount

150
Estimated Credit Losses in the Delinquency-Managed Portfolios for the goodwill impairment test. If, after assessing the totality of events or
Performing Exposures circumstances, the Company determines that it is not more-likely-than-not
In addition, risk management and finance representatives who cover that the fair value of a reporting unit is less than its carrying amount, no
business areas with delinquency-managed portfolios containing smaller- further testing is necessary. If, however, the Company determines that it is
balance homogeneous loans present their recommended reserve balances more-likely-than-not that the fair value of a reporting unit is less than its
based on leading credit indicators, including loan delinquencies and changes carrying amount, then the Company must perform the quantitative test.
in portfolio size as well as economic trends, including current and future The Company has an unconditional option to bypass the qualitative
housing prices, unemployment, length of time in foreclosure, costs to sell assessment for any reporting unit in any reporting period and proceed
and GDP. This methodology is applied separately for each product within directly to the quantitative test.
each geographic region in which these portfolios exist. This evaluation The quantitative test requires a comparison of the fair value of the
process is subject to numerous estimates and judgments. The frequency of individual reporting unit to its carrying value, including goodwill. If the
default, risk ratings, loss recovery rates, size and diversity of individual large fair value of the reporting unit is in excess of the carrying value, the related
credits and ability of borrowers with foreign currency obligations to obtain goodwill is considered not impaired and no further analysis is necessary.
the foreign currency necessary for orderly debt servicing, among other things, If the carrying value of the reporting unit exceeds the fair value, an
are all taken into account during this review. Changes in these estimates impairment loss is recognized in an amount equal to that excess, limited to
could have a direct impact on the credit costs in any period and could result the total amount of goodwill allocated to that reporting unit.
in a change in the allowance. Upon any business disposition, goodwill is allocated to, and derecognized
with, the disposed business based on the ratio of the fair value of the disposed
Allowance for Unfunded Lending Commitments business to the fair value of the reporting unit.
Credit loss reserves are recognized on all off-balance sheet commitments that Additional information on Citi’s goodwill impairment testing can be
are not unconditionally cancelable. Corporate loan EAD models include an found in Note 16 to the Consolidated Financial Statements.
incremental usage factor (or credit conversion factor) to estimate ECLs on
amounts undrawn at the reporting date. Off-balance sheet commitments Intangible Assets
include unfunded exposures, revolving facilities, securities underwriting Intangible assets—including core deposit intangibles, present value of
commitments, letters of credit, HELOCs and financial guarantees (excluding future profits, purchased credit card relationships, credit card contract related
performance guarantees). This reserve is classified on the Consolidated intangibles, other customer relationships and other intangible assets, but
Balance Sheet in Other liabilities. Changes to the allowance for unfunded excluding MSRs—are amortized over their estimated useful lives. Intangible
lending commitments are recorded in Provision for credit losses on assets that are deemed to have indefinite useful lives, primarily trade
unfunded lending commitments. names, are not amortized and are subject to annual impairment tests. An
impairment exists if the carrying value of the indefinite-lived intangible asset
Mortgage Servicing Rights (MSRs) exceeds its fair value. For other intangible assets subject to amortization,
Mortgage servicing rights (MSRs) are recognized as intangible assets an impairment is recognized if the carrying amount is not recoverable and
when purchased or when the Company sells or securitizes loans acquired exceeds the fair value of the intangible asset.
through purchase or origination and retains the right to service the loans.
Mortgage servicing rights are accounted for at fair value, with changes in Other Assets and Other Liabilities
value recorded in Other revenue in the Company’s Consolidated Statement Other assets include, among other items, loans HFS, deferred tax assets,
of Income. equity method investments, interest and fees receivable, lease right-of-
For additional information on the Company’s MSRs, see Notes 16 and 21 use assets, premises and equipment (including purchased and developed
to the Consolidated Financial Statements. software), repossessed assets and other receivables. Other liabilities include,
among other items, accrued expenses and other payables, lease liabilities,
Goodwill deferred tax liabilities and reserves for legal claims, taxes, unfunded lending
Goodwill represents the excess of acquisition cost over the fair value of commitments, repositioning reserves and other payables.
net tangible and intangible assets acquired in a business combination.
Goodwill is subject to annual impairment testing and interim assessments Other Real Estate Owned and Repossessed Assets
between annual tests if an event occurs or circumstances change that would Real estate or other assets received through foreclosure or repossession are
more-likely-than-not reduce the fair value of a reporting unit below its generally reported in Other assets, net of a valuation allowance for selling
carrying amount. costs and subsequent declines in fair value.
Under ASC Topic 350, Intangibles—Goodwill and Other and upon
the adoption of ASU No. 2017-04 on January 1, 2020, the Company has an
option to assess qualitative factors to determine if it is necessary to perform

151
Securitizations transfer would be considered a sale and that the assets transferred would
There are two key accounting determinations that must be made relating not be consolidated with the Company’s other assets in the event of the
to securitizations. Citi first makes a determination as to whether the Company’s insolvency.
securitization entity must be consolidated. Second, it determines whether the For a transfer of a portion of a financial asset to be considered a sale,
transfer of financial assets to the entity is considered a sale under GAAP. If the portion transferred must meet the definition of a participating interest.
the securitization entity is a VIE, the Company consolidates the VIE if it is the A participating interest must represent a pro rata ownership in an entire
primary beneficiary (as discussed in “Variable Interest Entities” above). For financial asset; all cash flows must be divided proportionately, with the
all other securitization entities determined not to be VIEs in which Citigroup same priority of payment; no participating interest in the transferred asset
participates, consolidation is based on which party has voting control of may be subordinated to the interest of another participating interest holder;
the entity, giving consideration to removal and liquidation rights in certain and no party may have the right to pledge or exchange the entire financial
partnership structures. Only securitization entities controlled by Citigroup asset unless all participating interest holders agree. Otherwise, the transfer is
are consolidated. accounted for as a secured borrowing.
Interests in the securitized and sold assets may be retained in the form See Note 21 to the Consolidated Financial Statements for
of subordinated or senior interest-only strips, subordinated tranches, further discussion.
spread accounts and servicing rights. In credit card securitizations, the
Company retains a seller’s interest in the credit card receivables transferred Risk Management Activities—Derivatives Used for
Hedging Purposes
to the trusts, which is not in securitized form. In the case of consolidated
The Company manages its exposures to market movements outside of its
securitization entities, including the credit card trusts, these retained interests
trading activities by modifying the asset and liability mix, either directly
are not reported on Citi’s Consolidated Balance Sheet. The securitized loans
or through the use of derivative financial products, including interest rate
remain on the balance sheet. Substantially all of the consumer loans sold
swaps, futures, forwards, purchased options and commodities, as well as
or securitized through non-consolidated trusts by Citigroup are U.S. prime
foreign-exchange contracts. These end-user derivatives are carried at fair
residential mortgage loans. Retained interests in non-consolidated mortgage
value in Trading account assets and Trading account liabilities.
securitization trusts are classified as Trading account assets, except for
See Note 22 to the Consolidated Financial Statements for a further
MSRs, which are included in Intangible assets on Citigroup’s Consolidated
discussion of the Company’s hedging and derivative activities.
Balance Sheet.
Instrument-Specific Credit Risk
Debt
Citi presents separately in AOCI the portion of the total change in the fair
Short-term borrowings and Long-term debt are accounted for at amortized
value of a liability resulting from a change in the instrument-specific credit
cost, except where the Company has elected to report the debt instruments,
risk, when the entity has elected to measure the liability at fair value in
including certain structured notes, at fair value, or the debt is in a fair value
accordance with the fair value option for financial instruments. Accordingly,
hedging relationship.
the change in fair value of liabilities for which the fair value option was
Transfers of Financial Assets elected, related to changes in Citigroup’s own credit spreads, is presented
For a transfer of financial assets to be considered a sale: (i) the assets in AOCI.
must be legally isolated from the Company, even in bankruptcy or other
Employee Benefits Expense
receivership, (ii) the purchaser must have the right to pledge or sell the assets
Employee benefits expense includes current service costs of pension and
transferred (or, if the purchaser is an entity whose sole purpose is to engage
other postretirement benefit plans (which are accrued on a current basis),
in securitization and asset-backed financing activities through the issuance
contributions and unrestricted awards under other employee plans, the
of beneficial interests and that entity is constrained from pledging the assets
amortization of restricted stock awards and costs of other employee benefits.
it receives, each beneficial interest holder must have the right to sell or pledge
For its most significant pension and postretirement benefit plans (Significant
their beneficial interests) and (iii) the Company may not have an option or
Plans), Citigroup measures and discloses plan obligations, plan assets
obligation to reacquire the assets.
and periodic plan expense quarterly, instead of annually. The effect of
If these sale requirements are met, the assets are removed from the
remeasuring the Significant Plan obligations and assets by updating plan
Company’s Consolidated Balance Sheet. If the conditions for sale are not
actuarial assumptions on a quarterly basis is reflected in Accumulated other
met, the transfer is considered to be a secured borrowing, the assets remain
comprehensive income (loss) and periodic plan expense. All other plans
on the Consolidated Balance Sheet and the sale proceeds are recognized as
(All Other Plans) are remeasured annually. See Note 8 to the Consolidated
the Company’s liability. A legal opinion on a sale generally is obtained for
Financial Statements.
complex transactions or where the Company has continuing involvement
with assets transferred or with the securitization entity. For a transfer
to be eligible for sale accounting, that opinion must state that the asset

152
Stock-Based Compensation Earnings per Share
The Company recognizes compensation expense related to stock and Earnings per share (EPS) is computed after deducting preferred stock
option awards over the requisite service period, generally based on the dividends. The Company has granted restricted and deferred share awards
instruments’ grant-date fair value, reduced by actual forfeitures as they with dividend rights that are considered to be participating securities,
occur. Compensation cost related to awards granted to employees who which are akin to a second class of common stock. Accordingly, a portion
meet certain age plus years-of-service requirements (retirement-eligible of Citigroup’s earnings is allocated to those participating securities in the
employees) is accrued in the year prior to the grant date, in the same manner EPS calculation.
as the accrual for cash incentive compensation. Certain stock awards Basic earnings per share is computed by dividing income available to
with performance conditions or certain clawback provisions are subject to common stockholders after the allocation of dividends and undistributed
variable accounting, pursuant to which the associated compensation expense earnings to the participating securities by the weighted average number
fluctuates with changes in Citigroup’s common stock price. See Note 7 to the of common shares outstanding for the period. Diluted earnings per
Consolidated Financial Statements. share reflects the potential dilution that could occur if securities or other
contracts to issue common stock were exercised. It is computed after giving
Income Taxes consideration to the weighted average dilutive effect of the Company’s stock
The Company is subject to the income tax laws of the U.S. and its states and options and warrants and convertible securities and after the allocation of
municipalities, as well as the non-U.S. jurisdictions in which it operates. earnings to the participating securities. Anti-dilutive options and warrants are
These tax laws are complex and may be subject to different interpretations disregarded in the EPS calculations.
by the taxpayer and the relevant governmental taxing authorities. In
establishing a provision for income tax expense, the Company must make Use of Estimates
judgments and interpretations about these tax laws. The Company must also Management must make estimates and assumptions that affect the
make estimates about when in the future certain items will affect taxable Consolidated Financial Statements and the related Notes to the Consolidated
income in the various tax jurisdictions, both domestic and foreign. Financial Statements. Such estimates are used in connection with certain
Disputes over interpretations of the tax laws may be subject to review and fair value measurements. See Note 24 to the Consolidated Financial
adjudication by the court systems of the various tax jurisdictions, or may be Statements for further discussions on estimates used in the determination of
settled with the taxing authority upon examination or audit. The Company fair value. Moreover, estimates are significant in determining the amounts
treats interest and penalties on income taxes as a component of Income of other-than-temporary impairments, impairments of goodwill and other
tax expense. intangible assets, provisions for probable losses that may arise from credit-
Deferred taxes are recorded for the future consequences of events that related exposures and probable and estimable losses related to litigation and
have been recognized in financial statements or tax returns, based upon regulatory proceedings, and income taxes. While management makes its best
enacted tax laws and rates. Deferred tax assets are recognized subject to judgment, actual amounts or results could differ from those estimates.
management’s judgment about whether realization is more-likely-than-not.
ASC 740, Income Taxes, sets out a consistent framework to determine the Cash Flows
appropriate level of tax reserves to maintain for uncertain tax positions. This Cash equivalents are defined as those amounts included in Cash and due
interpretation uses a two-step approach wherein a tax benefit is recognized if from banks and predominately all of Deposits with banks. Cash flows from
a position is more-likely-than-not to be sustained. The amount of the benefit risk management activities are classified in the same category as the related
is then measured to be the highest tax benefit that is more than 50% likely assets and liabilities.
to be realized. ASC 740 also sets out disclosure requirements to enhance Related Party Transactions
transparency of an entity’s tax reserves. The Company has related party transactions with certain of its subsidiaries
See Note 9 to the Consolidated Financial Statements for a further and affiliates. These transactions, which are primarily short-term in nature,
description of the Company’s tax provision and related income tax assets include cash accounts, collateralized financing transactions, margin
and liabilities. accounts, derivative transactions, charges for operational support and the
Commissions, Underwriting and Principal Transactions borrowing and lending of funds, and are entered into in the ordinary course
Commissions and fees revenues are recognized in income when earned. of business.
Underwriting revenues are recognized in income typically at the closing of
the transaction. Principal transactions revenues are recognized in income
on a trade-date basis. See Note 5 to the Consolidated Financial Statements for
a description of the Company’s revenue recognition policies for Commissions
and fees, and Note 6 to the Consolidated Financial Statements for details of
Principal transactions revenue.

153
ACCOUNTING CHANGES January 1, 2020 CECL Transition (Day 1) Impact
The CECL methodology’s impact on expected credit losses, among other
Accounting for Deposit Insurance Expenses
things, reflects Citi’s view of the current state of the economy, forecasted
During the fourth quarter of 2021, Citi changed its presentation of
macroeconomic conditions and quality of Citi’s portfolios. At the January 1,
accounting for deposit insurance costs paid to the Federal Deposit
2020 date of adoption, based on forecasts of macroeconomic conditions and
Insurance Corporation (FDIC) and similar foreign regulators. These costs
exposures at that time, the aggregate impact to Citi was an approximate
were previously presented within Interest expense and, as a result of this
$4.1 billion, or an approximate 29%, pretax increase in the Allowance
change, are now presented within Other operating expenses. Citi concluded
for credit losses, along with a $3.1 billion after-tax decrease in Retained
that this presentation was preferable in Citi’s circumstances, as it better
earnings and a deferred tax asset increase of $1.0 billion. This transition
reflected the nature of these deposit insurance costs in that these costs do
impact reflects (i) a $4.9 billion build to the Allowance for credit losses
not directly represent interest payments to creditors, but are similar in
for Citi’s consumer exposures, primarily driven by the impact on credit card
nature to other payments to regulatory agencies that are accounted for as
receivables of longer estimated tenors under the CECL lifetime expected credit
operating expenses.
loss methodology (loss coverage of approximately 23 months) compared to
This change in income statement presentation represents a “change in
shorter estimated tenors under the probable loss methodology under prior
accounting principle” under ASC Topic 250, Accounting Changes and
U.S. GAAP (loss coverage of approximately 14 months), net of recoveries; and
Error Corrections, with retrospective application to the earliest period
(ii) a release of $0.8 billion of reserves primarily related to Citi’s corporate
presented. This change in accounting principle resulted in a reclassification
net loan loss exposures, largely due to more precise contractual maturities
of $1,207 million, $1,203 million and $781 million of deposit insurance
that result in shorter remaining tenors, incorporation of recoveries and
expenses from Interest expense to Other operating expenses, for the years
use of more specific historical loss data based on an increase in portfolio
ended December 31, 2021, 2020 and 2019, respectively. This change had no
segmentation across industries and geographies.
impact on Citi’s net income or the total deposit insurance expense incurred
Under the CECL methodology, the Allowance for credit losses consists of
by Citi.
quantitative and qualitative components. Citi’s quantitative component of
Accounting for Financial Instruments—Credit Losses the Allowance for credit losses is model based and utilizes a single forward-
looking macroeconomic forecast and discounts inputs for the corporate
Overview
classifiably managed portfolios, complemented by the qualitative component
In June 2016, the Financial Accounting Standards Board (FASB) issued ASU
described below, in estimating expected credit losses and discounts inputs for
No. 2016-13, Financial Instruments—Credit Losses (Topic 326). The ASU
the corporate classifiably managed portfolios. Reasonable and supportable
introduced a new credit loss methodology, the CECL methodology, which
forecast periods vary by product. For example, Citi’s consumer models use a
requires earlier recognition of credit losses while also providing additional
13-quarter reasonable and supportable period and revert to historical loss
disclosure about credit risk. Citi adopted the ASU as of January 1, 2020,
experience thereafter, while its corporate loan models use a nine-quarter
which, as discussed below, resulted in an increase in Citi’s Allowance for
reasonable and supportable period followed by a three-quarter graduated
credit losses and a decrease to opening Retained earnings, net of deferred
transition to historical loss experience.
income taxes, at January 1, 2020.
The qualitative management adjustment component includes, among
The CECL methodology utilizes a lifetime “expected credit loss”
other things, management adjustments to reflect economic uncertainty
measurement objective for the recognition of credit losses for loans, HTM
based on the likelihood and severity of downside scenarios and certain
debt securities, receivables and other financial assets measured at amortized
portfolio characteristics not captured in the quantitative component, such
cost at the time the financial asset is originated or acquired. The ACL is
as concentrations, collateral coverage, model limitations, idiosyncratic
adjusted each period for changes in lifetime expected credit losses. The CECL
events and other factors as required by banking supervisory guidance for
methodology represents a significant change from prior U.S. GAAP and
the ACL. The qualitative management adjustment component also includes
replaced the prior multiple existing impairment methods, which generally
management adjustments to reflect the uncertainty around the estimated
required that a loss be incurred before it was recognized. Within the life
impact of the pandemic on credit loss estimates.
cycle of a loan or other financial asset, the methodology generally results in
the earlier recognition of the provision for credit losses and the related ACL Accounting for Variable Post-Charge-Off Third-Party
than prior U.S. GAAP. For available-for-sale debt securities where fair value Collection Costs
is less than cost that Citi intends to hold or more-likely-than-not will not be During the second quarter of 2020, Citi changed its accounting for variable
required to sell, credit-related impairment, if any, is recognized through an post-charge-off third-party collection costs, whereby these costs were
ACL and adjusted each period for changes in credit risk. accounted for as an increase in expenses as incurred rather than a reduction
in expected credit recoveries. Citi concluded that such a change in the
method of accounting is preferable in Citi’s circumstances as it better reflects
the nature of these collection costs. That is, these costs do not represent

154
reduced payments from borrowers and are similar to Citi’s other executory In January 2021, the FASB issued ASU No. 2021-01, Reference Rate
third-party vendor contracts that are accounted for as operating expenses Reform (Topic 848): Scope, which clarifies that the scope of the initial
as incurred. As a result of this change, Citi had a consumer ACL release of accounting relief issued by the FASB in March 2020 includes derivative
$426 million in the second quarter of 2020 for its U.S. cards portfolios and instruments that do not reference a rate that is expected to be discontinued
$122 million in the third quarter of 2020 for its international portfolios. but that use an interest rate for margining, discounting or contract price
In the fourth quarter of 2020, Citi revised the second quarter of 2020 alignment that is modified as a result of reference rate reform (commonly
accounting conclusion from a “change in accounting estimate effected by referred to as the “discounting transition”). The amendments do not apply
a change in accounting principle” to a “change in accounting principle,” to contract modifications made after December 31, 2022, new hedging
which required an adjustment to opening retained earnings rather than relationships entered into after December 31, 2022 and existing hedging
net income, with retrospective application to the earliest period presented. relationships evaluated for effectiveness in periods after December 31, 2022,
Citi considered the guidance in ASC Topic 250, Accounting Changes and except for hedging relationships existing as of December 31, 2022 that apply
Error Corrections; ASC Topic 270, Interim Reporting; ASC Topic 250-S99- certain optional expedients in which the accounting effects are recorded
1, Assessing Materiality; and ASC Topic 250-S99-23, Accounting Changes through the end of the hedging relationship. The ASU was adopted by Citi on
Not Retroactively Applied Due to Immateriality, Considering the Effects a full retrospective basis upon issuance and did not impact financial results
of Prior Year Misstatements when Quantifying Misstatements in Current in 2020.
Year Financial Statements. Citi believes that the effects of the revisions
were not material to any previously reported quarterly or annual period. Lease Accounting
As a result, Citi’s full-year and quarterly results were revised to reflect this In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842),
change as if it were effective as of January 1, 2020 (impacts to 2018 and 2019 which increases the transparency and comparability of accounting for lease
were de minimis). Accordingly, Citi recorded an increase to its beginning transactions. The ASU requires lessees to recognize liabilities for operating
retained earnings on January 1, 2020 of $330 million and a decrease of leases and corresponding right-of-use (ROU) assets on the balance sheet.
$443 million to its ACL. Further, Citi recorded a decrease of $18 million to The ASU also requires quantitative and qualitative disclosures regarding
its provisions for credit losses on loans in the first quarter of 2020 and an key information about leasing arrangements. Lessee accounting for finance
increase of $339 million and $122 million to its provisions for credit losses leases, as well as lessor accounting, is largely unchanged.
on loans in the second and third quarters of 2020, respectively. In addition, Effective January 1, 2019, Citi prospectively adopted the provisions of
Citi`s operating expenses increased by $49 million and $45 million, with a the ASU. At adoption, Citi recognized a lease liability and a corresponding
corresponding decrease in net credit losses, in the first and second quarters of ROU asset of approximately $4.4 billion on the Consolidated Balance Sheet
2020, respectively. As a result of these changes, Citi’s net income for the year related to its future lease payments as a lessee under operating leases. In
ended December 31, 2020 was $330 million lower, or $0.16 per share lower, addition, Citi recorded a $151 million increase in Retained earnings for the
than under the previous presentation as a change in accounting estimate cumulative effect of recognizing previously deferred gains on sale/leaseback
effected by a change in accounting principle. transactions. Adoption of the ASU did not have a material impact on the
Consolidated Statement of Income. See Notes 14 and 26 for additional details.
Reference Rate Reform Citi has elected not to separate lease and non-lease components in its
In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform lease contracts and accounts for them as a single lease component. Citi has
(Topic 848): Facilitation of the Effects of Reference Rate Reform on also elected not to record an ROU asset for short-term leases that have a
Financial Reporting, which provides optional guidance to ease the potential term of 12 months or less and do not contain purchase options that Citi is
burden in accounting for (or recognizing the effects of) reference rate reasonably certain to exercise. The cost of short-term leases is recognized in
reform on financial reporting. Specifically, the guidance permits an entity, the Consolidated Statement of Income on a straight-line basis over the lease
when certain criteria are met, to consider amendments to contracts made to term. In addition, Citi applies the portfolio approach to account for certain
comply with reference rate reform to meet the definition of a modification equipment leases with nearly identical contractual terms.
under U.S. GAAP. It further allows hedge accounting to be maintained
and permits a one-time transfer or sale of qualifying held-to-maturity Lessee Accounting
securities. The expedients and exceptions provided by the amendments are Operating lease ROU assets and lease liabilities are included in Other
permitted to be adopted any time through December 31, 2022 and do not assets and Other liabilities, respectively, on the Consolidated Balance
apply to contract modifications made and hedging relationships entered into Sheet. Finance lease assets and liabilities are included in Other assets and
or evaluated after December 31, 2022, except for certain optional expedients Long-term debt, respectively, on the Consolidated Balance Sheet. Citi uses
elected for certain hedging relationships existing as of December 31, its incremental borrowing rate, factoring in the lease term, to determine
2022. The ASU was adopted by Citi as of June 30, 2020 with prospective the lease liability, which is measured at the present value of future lease
application and did not impact financial results in 2020. payments. The ROU asset is initially measured at the amount of the lease
liability plus any prepaid rent and remaining initial direct costs, less any

155
remaining lease incentives and accrued rent. The ROU asset is subject FUTURE ACCOUNTING CHANGES
to impairment, during the lease term, in a manner consistent with the
Long-Duration Insurance Contracts
impairment of long-lived assets. The lease terms include periods covered
In August 2018, the FASB issued ASU No. 2018-12, Financial Services—
by options to extend or terminate the lease depending on whether Citi is
Insurance: Targeted Improvements to the Accounting for Long-Duration
reasonably certain to exercise such options.
Contracts, which changes the existing recognition, measurement,
Lessor Accounting presentation and disclosures for long-duration contracts issued by an
Lessor accounting is largely unchanged under the ASU. Citi acts as a lessor insurance entity. Specifically, the guidance (i) improves the timeliness
for power, railcar, shipping and aircraft assets, where Citi has executed of recognizing changes in the liability for future policy benefits and
operating, direct financing and leveraged leasing arrangements. In a direct prescribes the rate used to discount future cash flows for long-duration
financing or a leveraged lease, Citi derecognizes the leased asset and records insurance contracts, (ii) simplifies and improves the accounting for
a lease financing receivable at lease commencement in Loans. Upon lease certain market-based options or guarantees associated with deposit (or
termination, Citi may obtain control of the asset, which is then recorded account balance) contracts, (iii) simplifies the amortization of deferred
in Other assets on the Consolidated Balance Sheet and any remaining acquisition costs and (iv) introduces additional quantitative and qualitative
receivable for the asset’s residual value is derecognized. Under the ASU, disclosures. Citi has certain insurance subsidiaries, primarily in Mexico, that
leveraged lease accounting is grandfathered and may continue to be applied issue long-duration insurance contracts such as traditional life insurance
until the leveraged lease is terminated or modified. Upon modification, the policies and life-contingent annuity contracts that will be impacted by the
lease must be classified as an operating, direct finance or sales-type lease in requirements of ASU 2018-12.
accordance with the ASU. The effective date of ASU 2018-12 was deferred for all insurance entities
Separately, as part of managing its real estate footprint, Citi subleases by ASU 2019-09, Finance Services—Insurance: Effective Date (issued
excess real estate space via operating lease arrangements. in October 2019) and by ASU 2020-11, Financial Services—Insurance:
Effective Date and Early Application (issued in November 2020). Citi
plans to adopt the targeted improvements in ASU 2018-12 on January 1,
2023 and is currently evaluating the impact of the standard on its insurance
subsidiaries. Citi does not expect a material impact to its results of operations
as a result of adopting the standard.

SUPERSEDED ACCOUNTING PRINCIPLES

The following accounting principle was in effect for 2019 since ASU
No. 2016-13, Financial Instruments—Credit Losses (Topic 326) became
effective beginning on January 1, 2020.

Allowance for Credit Losses

The allowance for credit losses on loans represents management’s best
estimate of probable credit losses inherent in the portfolio, including
probable losses related to large individually evaluated impaired loans and
troubled debt restructurings. Additions to the allowance are made through
the Provision for credit losses on loans. Loan losses are deducted from the
allowance and subsequent recoveries are added. Assets received in exchange
for loan claims in a restructuring are initially recorded at fair value, with any
gain or loss reflected as a recovery or charge-off in the provision.

156
2. DISCONTINUED OPERATIONS, SIGNIFICANT The following assets and liabilities for the Australia consumer banking
DISPOSALS AND OTHER BUSINESS EXITS business were identified and reclassified to held-for-sale within Other
assets and Other liabilities on the Consolidated Balance Sheet at
Summary of Discontinued Operations
December 31, 2021:
The Company’s results from Discontinued operations consisted of residual
activities related to the sales of the Egg Banking plc credit card business in
December 31,
2011 and the German retail banking business in 2008. All Discontinued
In millions of dollars 2021
operations results are recorded within Corporate/Other.
Assets
The following table summarizes financial information for all
Cash and deposits with banks $ 24
Discontinued operations: Loans (net of allowance of $242 million at December 31, 2021) 8,813
Goodwill and intangible assets 257
In millions of dollars 2021 2020 2019 Other assets 81
Total revenues, net of interest expense $— $— $— Total assets $9,175
Income (loss) from discontinued operations $ 7 $(20) $(31)
Liabilities
Benefit for income taxes — — (27)
Deposits $7,034
Income (loss) from discontinued operations, Long-term debt 479
net of taxes $ 7 $(20) $ (4) Other liabilities 171
Total liabilities $7,684
Cash flows from Discontinued operations were not material for any
period presented.
Agreement to Sell Philippines Consumer Banking Business
Significant Disposals On December 23, 2021, Citi entered into an agreement to sell its Philippines
The following transactions were identified as significant disposals that are consumer banking business, which is part of Asia GCB. The sale, which is
recorded within the GCB segment, including the assets and liabilities that subject to regulatory approvals and other closing conditions, is expected to
were reclassified to held-for-sale within Other assets and Other liabilities close in the second half of 2022 and result in an after-tax gain upon closing.
on the Consolidated Balance Sheet and the Income (loss) before taxes Income before taxes for the period in which the individually significant
(benefits) related to each business. component was classified as held-for-sale and for all prior periods was
as follows:
Agreement to Sell Australia Consumer Banking Business
On August 9, 2021, Citi entered into an agreement to sell its Australia In millions of dollars 2021 2020 2019
consumer banking business, which is part of Asia GCB. The sale, which is
Income before taxes $ 145 $42 $ 196
subject to regulatory approvals and other closing conditions, is expected
to close in the first half of 2022. As of December 31, 2021, Citi reported the The following assets and liabilities for the Philippines consumer
business as held-for-sale, resulting in a pretax loss on sale of approximately banking business were identified and reclassified to held-for-sale within
$700 million recorded in Other revenue ($600 million after-tax), subject Other assets and Other liabilities on the Consolidated Balance Sheet at
to closing adjustments. The loss on sale primarily reflected the impact of December 31, 2021:
a pretax $625 million currency translation adjustment (CTA) loss (net of
hedges) ($475 million after-tax) already reflected in the Accumulated other December 31,
comprehensive income (AOCI) component of equity. Upon closing, the In millions of dollars 2021
CTA-related balance will be removed from the AOCI component of equity, Assets
resulting in a neutral CTA impact to Citi’s Common Equity Tier 1 Capital. Cash and deposits with banks $ 20
Loans (net of allowance of $96 million at December 31, 2021) 1,132
Income before taxes, excluding the above referenced pretax loss on sale, for
Goodwill 244
the Australia consumer banking business was as follows: Other assets, advances to/from subs 588
Other assets 63
In millions of dollars 2021 2020 2019 Total assets $2,047
Income before taxes $ 306 $ 181 $ 302
Liabilities
Deposits $1,373
Other liabilities 76
Total liabilities $1,449

157
Sale of Mexico Asset Management Business
On September 21, 2018, Citi completed the sale of its Mexico asset
management business, which was part of Latin America GCB. As part of
the sale, Citi derecognized total assets of $137 million and total liabilities
of $41 million. The transaction resulted in a pretax gain on sale of
approximately $250 million (approximately $150 million after-tax) recorded
in Other revenue in 2018. Further, Citi and the buyer entered into a 10-year
services framework agreement, with Citi acting as the distributor in exchange
for an ongoing fee.
Income before taxes for the divested business, excluding the pretax gain
on sale, was as follows:

In millions of dollars 2021 2020 2019

Income before taxes $— $— $123

Other Business Exits

Wind-Down of Korea Consumer Banking Business
On October 25, 2021, Citi announced its decision to wind down and close
its Korea consumer banking business, which is part of Asia GCB. In
connection with the announcement, Citibank Korea Inc. (CKI) commenced
a voluntary termination program (VERP). Due to the voluntary nature
of this termination program, no liabilities for termination benefits are
recorded until CKI makes formal offers to employees that are then irrevocably
accepted by those employees. Related charges are recorded as Compensation
and benefits.
For the year ended December 31, 2021, Citigroup recorded pretax charges
of approximately $1.1 billion, composed of gross charges connected to the
Korea voluntary termination program.
The following table summarizes the reserve charges related to the
voluntary termination program and other initiatives reported in the GCB
business segment:

In millions of dollars 2021

Employee termination costs (pretax)
Original reserve charges $1,052
Utilization (1)
Foreign exchange 3
Balance at December 31, 2021 $1,054

The total estimated cash charges for the termination program are
approximately $1.1 billion, of which most are already recognized in 2021.
Citi expects to recognize the remaining charges throughout 2022, as
voluntary retirements are phased in and irrevocably accepted in order to
minimize business and operational impacts.

158
3. OPERATING SEGMENTS Corporate/Other included certain unallocated costs of global functions,
other corporate expenses and net treasury results, offsets to certain line-item
As of December 31, 2021, Citigroup’s primary activities were conducted
reclassifications and eliminations, and unallocated taxes.
through the following operating segments: Institutional Clients Group
Beginning in 2021, Citi changed its allocation for certain recurring
(ICG) and Global Consumer Banking (GCB). Activities not assigned to the
expenses that are attributable to the operating segments from Corporate/
operating segments, as well as certain North America legacy consumer loan
Other to GCB and ICG. These expenses include incremental investments
portfolios, discontinued operations and other legacy assets, were included
related to risks and controls, technology capabilities and information security
in Corporate/Other.
initiatives, as well as some incremental spend related to the pandemic.
The operating segments are determined based on how management
The prior-period reportable operating segment results have been revised to
allocates resources and measures financial performance to make business
conform to the current-year presentation for all periods to reflect this revised
decisions, and are reflective of the types of customers served, and products
allocation methodology. Citi’s consolidated results were unchanged for all
and services provided.
periods presented as a result of the changes discussed above.
ICG consisted of Banking and Markets and securities services, providing
As part of its strategic refresh, Citi is making management reporting
institutional, public sector and high-net-worth clients in 95 countries
changes to align with its vision and strategy, including to assist Citi in
and jurisdictions with a broad range of banking and financial products
decisions about resources and capital allocation and to assess business
and services.
performance. In the first quarter of 2022, Citi plans to revise its financial
GCB included a global, full-service consumer franchise delivering a
reporting structure to align with these management reporting changes.
wide array of banking, credit card, lending and investment services through
The accounting policies of these operating segments are the same as those
a network of local branches, offices and electronic delivery systems and
disclosed in Note 1 to the Consolidated Financial Statements.
consisted of three GCB reporting units: North America, Latin America and
The following table presents certain information regarding the Company’s
Asia (including consumer banking activities in certain EMEA countries).
continuing operations by operating segment and Corporate/Other:

Revenues, Provision (benefits) Income (loss) from Identifiable

net of interest expense(1) for income taxes continuing operations(2) assets
In millions of dollars, except
identifiable assets in billions 2021 2020 2019 2021 2020 2019 2021 2020 2019 2021 2020
Institutional Clients Group $ 43,887 $45,088 $ 39,824 $4,524 $3,303 $3,524 $ 15,763 $11,553 $ 12,776 $1,762 $1,730
Global Consumer Banking 27,330 30,342 33,221 1,745 143 1,708 6,046 663 5,579 432 434
Corporate/Other 667 71 2,022 (818) (921) (802) 209 (1,109) 1,116 97 96
Total $ 71,884 $75,501 $ 75,067 $5,451 $2,525 $4,430 $ 22,018 $11,107 $ 19,471 $2,291 $2,260

(1) Includes total revenues, net of interest expense (excluding Corporate/Other), in North America of $34.2 billion, $36.8 billion and $34.1 billion; in EMEA of $13.1 billion, $13.0 billion and $12.2 billion; in Latin America
of $9.2 billion, $9.4 billion and $10.6 billion; and in Asia of $14.7 billion, $16.2 billion and $16.2 billion in 2021, 2020 and 2019, respectively. These regional numbers exclude Corporate/Other, which largely reflects
U.S. activities.
(2) Includes pretax provisions for credit losses and for benefits and claims in the ICG results of $(2.9) billion, $5.6 billion and $0.6 billion; in the GCB results of $(0.5) billion, $11.7 billion and $7.9 billion; and in the
Corporate/Other results of $(0.4) billion, $0.2 billion and $(0.1) billion in 2021, 2020 and 2019, respectively.

159
4. INTEREST REVENUE AND EXPENSE
Interest revenue and Interest expense consisted of the following:

In millions of dollars 2021 2020 2019

Interest revenue
Loan interest, including fees $ 35,440 $ 40,185 $ 47,751
Deposits with banks 577 928 2,682
Securities borrowed and purchased under agreements to resell 1,052 2,283 6,872
Investments, including dividends 7,388 7,989 9,860
Trading account assets(2) 5,365 6,125 7,672
Other interest-bearing assets 653 579 1,673
Total interest revenue $ 50,475 $ 58,089 $ 76,510
Interest expense
Deposits(1) $ 2,896 $ 5,334 $ 11,852
Securities loaned and sold under agreements to repurchase 1,012 2,077 6,263
Trading account liabilities(2) 482 628 1,308
Short-term borrowings and other interest-bearing liabilities 121 630 2,465
Long-term debt 3,470 4,669 6,494
Total interest expense $ 7,981 $ 13,338 $ 28,382
Net interest income $ 42,494 $ 44,751 $ 48,128
Provision for credit losses on loans (3,103) 15,922 8,218
Net interest income after provision for credit losses on loans $ 45,597 $ 28,829 $ 39,910

(1) During 2021, Citi reclassified deposit insurance expenses from Interest expense to Other operating expenses for all periods presented. Amounts reclassified for each year were $1,207 million for 2021, $1,203 million
for 2020 and $781 million for 2019. For additional information, see Note 1 to the Consolidated Financial Statements.
(2) Interest expense on Trading account liabilities of ICG is reported as a reduction of Interest revenue. Interest revenue and Interest expense on cash collateral positions are reported in interest on Trading account assets
and Trading account liabilities, respectively.

160
5. COMMISSIONS AND FEES; ADMINISTRATION AND are subject to contractually based performance thresholds that, if met, would
OTHER FIDUCIARY FEES require Citi to make ongoing payments to the partner. The threshold is
based on the profitability of a program and is generally calculated based on
Commissions and Fees
predefined program revenues less predefined program expenses. In most of
The primary components of Commissions and fees revenue are investment
Citi’s partner sharing agreements, program expenses include net credit losses
banking fees, brokerage commissions, credit card and bank card income and
and, to the extent that the increase in net credit losses reduces Citi’s liability
deposit-related fees.
for the partners’ share for a given program year, it would generally result
Investment banking fees are substantially composed of underwriting
in lower payments to partners in total for that year and vice versa. Further,
and advisory revenues. Such fees are recognized at the point in time when
in some instances, other partner payments are based on program sales and
Citigroup’s performance under the terms of a contractual arrangement is
new account acquisitions. Interchange revenues are recognized as earned
completed, which is typically at the closing of a transaction. Reimbursed
on a daily basis when Citi’s performance obligation to transmit funds to the
expenses related to these transactions are recorded as revenue and are
payment networks has been satisfied. Annual card fees, net of origination
included within investment banking fees. In certain instances for advisory
costs, are deferred and amortized on a straight-line basis over a 12-month
contracts, Citi will receive amounts in advance of the deal’s closing. In these
period. Costs related to card reward programs are recognized when the
instances, the amounts received will be recognized as a liability and not
rewards are earned by the cardholders. Payments to partners are recognized
recognized in revenue until the transaction closes. For the periods presented,
when incurred.
the contract liability amount was negligible.
Deposit-related fees consist of service charges on deposit accounts and
Out-of-pocket expenses associated with underwriting activity are
fees earned from performing cash management activities and other deposit
deferred and recognized at the time the related revenue is recognized, while
account services. Such fees are recognized in the period in which the related
out-of-pocket expenses associated with advisory arrangements are expensed
service is provided.
as incurred. In general, expenses incurred related to investment banking
Transactional service fees primarily consist of fees charged for processing
transactions, whether consummated or not, are recorded in Other operating
services such as cash management, global payments, clearing, international
expenses. The Company has determined that it acts as principal in the
funds transfer and other trade services. Such fees are recognized as/when the
majority of these transactions and therefore presents expenses gross within
associated service is satisfied, which normally occurs at the point in time the
Other operating expenses.
service is requested by the customer and provided by Citi.
Brokerage commissions primarily include commissions and fees from
Insurance distribution revenue consists of commissions earned from
the following: executing transactions for clients on exchanges and over-the-
third-party insurance companies for marketing and selling insurance
counter markets; sales of mutual funds and other annuity products; and
policies on behalf of such entities. Such commissions are recognized in
assisting clients in clearing transactions, providing brokerage services and
Commissions and fees at the point in time the associated service is fulfilled,
other such activities. Brokerage commissions are recognized in Commissions
generally when the insurance policy is sold to the policyholder. Sales of
and fees at the point in time the associated service is fulfilled, generally
certain insurance products include a portion of variable consideration
on the trade execution date. Sales of certain investment products include a
associated with the underlying product. In these instances, a portion of the
portion of variable consideration associated with the underlying product.
revenue associated with the sale of the policy is not recognized until the
In these instances, a portion of the revenue associated with the sale of the
variable consideration becomes determinable. The Company recognized
product is not recognized until the variable consideration becomes fixed.
$260 million, $290 million and $322 million of revenue related to such
The Company recognized $639 million, $495 million and $485 million
variable consideration for the years ended December 31, 2021, 2020 and
of revenue related to such variable consideration for the years ended
2019, respectively. These amounts primarily relate to performance obligations
December 31, 2021, 2020 and 2019, respectively. These amounts primarily
satisfied in prior periods.
relate to performance obligations satisfied in prior periods.
Insurance premiums consist of premium income from insurance policies
Credit card and bank card income is primarily composed of interchange
that Citi has underwritten and sold to policyholders.
fees, which are earned by card issuers based on purchase sales, and certain
card fees, including annual fees. Costs related to customer reward programs
and certain payments to partners (primarily based on program sales,
profitability and customer acquisitions) are recorded as a reduction of credit
card and bank card income. Citi’s credit card programs have certain partner
sharing agreements that vary by partner. These partner sharing agreements

161
The following table presents Commissions and fees revenue:
2021 2020 2019
In millions of dollars ICG GCB Corp/Other Total ICG GCB Corp/Other Total ICG GCB Corp/Other Total
Investment banking $ 6,007 $ — $— $ 6,007 $4,483 $ — $— $ 4,483 $3,767 $ — $— $ 3,767
Brokerage commissions 2,080 1,156 — 3,236 1,986 974 — 2,960 1,771 841 — 2,612
Credit card and bank card income
Interchange fees 817 9,004 — 9,821 703 7,301 — 8,004 1,222 8,621 — 9,843
Card-related loan fees 28 667 — 695 23 626 — 649 60 718 — 778
Card rewards and partner
payments(1) (405) (9,830) — (10,235) (380) (8,293) — (8,673) (691) (8,883) — (9,574)
Deposit-related fees(2) 1,044 287 — 1,331 958 376 — 1,334 1,048 470 — 1,518
Transactional service fees 1,003 95 — 1,098 886 88 — 974 824 123 — 947
Corporate finance(3) 709 — — 709 457 — — 457 616 — — 616
Insurance distribution revenue 11 462 — 473 11 492 — 503 12 524 — 536
Insurance premiums — 94 — 94 — 125 — 125 — 186 — 186
Loan servicing 43 40 15 98 82 30 25 137 78 55 21 154
Other 104 237 4 345 118 310 4 432 99 261 3 363
Total commissions and fees(4) $ 11,441 $ 2,212 $19 $ 13,672 $9,327 $ 2,029 $29 $ 11,385 $8,806 $ 2,916 $24 $ 11,746

(1) Citi’s consumer credit card programs have certain partner-sharing agreements that vary by partner. These agreements are subject to contractually based performance thresholds that, if met, would require Citi to make
ongoing payments to the partner. The threshold is based on the profitability of a program and is generally calculated based on predefined program revenues less predefined program expenses. In most of Citi’s partner-
sharing agreements, program expenses include net credit losses and, to the extent that the increase in net credit losses reduces Citi’s liability for the partners’ share for a given program year, would generally result in
lower payments to partners in total for that year and vice versa. Further, in some instances, other partner payments are based on program sales and new account acquisitions.
(2) Includes overdraft fees of $107 million, $100 million and $127 million for the years ended December 31, 2021, 2020 and 2019, respectively. Overdraft fees are accounted for under ASC 310.
(3) Consists primarily of fees earned from structuring and underwriting loan syndications or related financing activity. This activity is accounted for under ASC 310.
(4) Commissions and fees include $(8,516) million, $(7,160) million and $(7,695) million not accounted for under ASC 606, Revenue from Contracts with Customers, for the years ended December 31, 2021, 2020 and
2019, respectively. Amounts reported in Commissions and fees accounted for under other guidance primarily include card-related loan fees, card reward programs and certain partner payments, corporate finance fees,
insurance premiums and loan servicing fees.

162
Administration and Other Fiduciary Fees Fiduciary fees consist of trust services and investment management
Administration and other fiduciary fees revenue is primarily composed of services. As an escrow agent, Citi receives, safe-keeps, services and manages
custody fees and fiduciary fees. clients’ escrowed assets, such as cash, securities, property (including
The custody product is composed of numerous services related to the intellectual property), contracts or other collateral. Citi performs its escrow
administration, safekeeping and reporting for both U.S. and non-U.S. agent duties by safekeeping the assets during the specified time period
denominated securities. The services offered to clients include trade agreed upon by all parties and therefore earns its revenue evenly during the
settlement, safekeeping, income collection, corporate action notification, contract duration.
record-keeping and reporting, tax reporting and cash management. These Investment management services consist of managing assets on behalf of
services are provided for a wide range of securities, including but not limited Citi’s retail and institutional clients. Revenue from these services primarily
to equities, municipal and corporate bonds, mortgage- and asset-backed consists of asset-based fees for advisory accounts, which are based on the
securities, money market instruments, U.S. Treasuries and agencies, market value of the client’s assets and recognized monthly, when the market
derivative instruments, mutual funds, alternative investments and precious value is fixed. In some instances, the Company contracts with third-party
metals. Custody fees are recognized as or when the associated promised advisors and with third-party custodians. The Company has determined that
service is satisfied, which normally occurs at the point in time the service is it acts as principal in the majority of these transactions and therefore presents
requested by the customer and provided by Citi. the amounts paid to third parties gross within Other operating expenses.
The following table presents Administration and other fiduciary
fees revenue:
2021 2020 2019
In millions of dollars ICG GCB Corp/Other Total ICG GCB Corp/Other Total ICG GCB Corp/Other Total
Custody fees $1,872 $ 25 $ 1 $1,898 $1,590 $ 29 $38 $1,657 $1,453 $ 16 $ 73 $1,542
Fiduciary fees 798 659 7 1,464 668 602 4 1,274 647 621 28 1,296
Guarantee fees 569 8 4 581 529 7 5 541 558 8 7 573
Total administration
and other fiduciary fees(1) $3,239 $692 $12 $3,943 $2,787 $638 $47 $3,472 $2,658 $645 $108 $3,411

(1) Administration and other fiduciary fees include $581 million, $541 million and $573 million for the years ended December 31, 2021, 2020 and 2019, respectively, that are not accounted for under ASC 606, Revenue from
Contracts with Customers. These generally include guarantee fees.

163
6. PRINCIPAL TRANSACTIONS the Consolidated Financial Statements for information about net interest
income related to trading activities. Principal transactions include CVA
Principal transactions revenue consists of realized and unrealized gains and
(credit valuation adjustments) and FVA (funding valuation adjustments) on
losses from trading activities. Trading activities include revenues from fixed
over-the-counter derivatives, and gains (losses) on certain economic hedges
income, equities, credit and commodities products and foreign exchange
on loans in ICG. These adjustments are discussed further in Note 24 to the
transactions that are managed on a portfolio basis and characterized below
Consolidated Financial Statements.
based on the primary risk managed by each trading desk. Not included in the
In certain transactions, Citi incurs fees and presents these fees paid to
table below is the impact of net interest income related to trading activities,
third parties in operating expenses.
which is an integral part of trading activities’ profitability. See Note 4 to
The following table presents Principal transactions revenue:

In millions of dollars 2021 2020 2019

Interest rate risks (1)
$ 2,790 $ 5,561 $3,831
Foreign exchange risks(2) 3,886 4,158 3,850
Equity risks(3) 2,197 1,343 808
Commodity and other risks(4) 1,123 1,133 546
Credit products and risks(5) 158 1,690 (143)
Total $ 10,154 $13,885 $8,892

(1) Includes revenues from government securities and corporate debt, municipal securities, mortgage securities and other debt instruments. Also includes spot and forward trading of currencies and exchange-traded
and over-the-counter (OTC) currency options, options on fixed income securities, interest rate swaps, currency swaps, swap options, caps and floors, financial futures, OTC options and forward contracts on fixed
income securities.
(2) Includes revenues from foreign exchange spot, forward, option and swap contracts, as well as foreign currency translation (FX translation) gains and losses.
(3) Includes revenues from common, preferred and convertible preferred stock, convertible corporate debt, equity-linked notes and exchange-traded and OTC equity options and warrants.
(4) Primarily includes revenues from crude oil, refined oil products, natural gas and other commodities trades.
(5) Includes revenues from structured credit products.

164
7. INCENTIVE PLANS Outstanding (Unvested) Stock Awards
A summary of the status of unvested stock awards granted as discretionary
Discretionary Annual Incentive Awards
annual incentive or sign-on and replacement awards is presented below:
Citigroup grants immediate cash bonus payments and various forms
of immediate and deferred awards as part of its discretionary annual
Weighted-
incentive award program involving a large segment of Citigroup’s average grant
employees worldwide. date fair
Discretionary annual incentive awards are generally awarded in the first Unvested stock awards Shares value per share
quarter of the year based on the previous year’s performance. Awards valued Unvested at December 31, 2020 28,226,292 $69.25
at less than U.S. $100,000 (or the local currency equivalent) are generally Granted(1) 17,535,978 62.10
paid entirely in the form of an immediate cash bonus. Pursuant to Citigroup Canceled (1,453,029) 67.01
Vested(2) (12,664,557) 67.17
policy and/or regulatory requirements, certain employees are subject to
mandatory deferrals of incentive pay and generally receive 25%–60% of Unvested at December 31, 2021 31,644,684 $66.22
their awards in the form of deferred stock and deferred cash stock units. (1) The weighted-average fair value of the shares granted during 2020 and 2019 was $76.68 and
Discretionary annual incentive awards to many employees in the EU are $61.78, respectively.
(2) The weighted-average fair value of the shares vesting during 2021 was approximately $64.23 per
subject to deferral requirements regardless of the total award value, with at share on the vesting date, compared to $67.17 on the grant date.
least 50% of the immediate incentive delivered in the form of a stock payment
award subject to a restriction on sale or transfer (generally, for 12 months). Total unrecognized compensation cost related to unvested stock awards
Subject to certain exceptions (principally, for retirement-eligible was $654 million at December 31, 2021. The cost is expected to be recognized
employees), continuous employment within Citigroup is required to vest in over a weighted-average period of 1.6 years.
deferred annual incentive awards. Post employment vesting by retirement-
eligible employees and participants who meet other conditions is generally
conditioned upon their refraining from competition with Citigroup during
the remaining vesting period, unless the employment relationship has been
terminated by Citigroup under certain conditions.
Generally, the deferred awards vest in equal annual installments over
three- or four-year periods. Vested CAP awards are delivered in shares of
common stock. Deferred cash awards are payable in cash and, except as
prohibited by applicable regulatory guidance, earn a fixed notional rate of
interest that is paid only if and when the underlying principal award amount
vests. Deferred cash stock unit awards are payable in cash at the vesting value
of the underlying stock. Generally, in the EU, vested CAP shares are subject to
a restriction on sale or transfer after vesting, and vested deferred cash awards
and deferred cash stock units are subject to hold back (generally, for 6 or 12
months based on the award type).
Unvested CAP, deferred cash stock units and deferred cash awards may
be subject to performance conditions and are subject to one or more
cancellation and clawback provisions that apply in certain circumstances,
including gross misconduct.

165
Performance Share Units A summary of the performance share unit activity for 2021 is
Executive officers were awarded performance share units (PSUs) every presented below:
February from 2018 to 2021, for performance in the year prior to the award
date based on two performance metrics. For PSUs awarded in 2018, 2019 and Weighted-
2020, those metrics were return on tangible common equity and earnings per average grant
date fair
share. For PSUs awards in 2021, the metrics were return on tangible common Performance share units Units value per unit
equity and tangible book value per share. In each year, the metrics were
Outstanding, beginning of year 1,333,803 $79.39
equally weighted.
Granted(1) 418,098 78.55
For all award years, if the total shareholder return is negative over the Canceled (344,131) 83.24
three-year performance period, executives may earn no more than 100% Payments (133,497) 83.24
of the target PSUs, regardless of the extent to which Citigroup outperforms Outstanding, end of year 1,274,273 $77.67
against performance goals and/or peer firms. The number of PSUs ultimately
(1) The weighted-average grant date fair value per unit awarded in 2020 and 2019 was $83.45 and

earned could vary from zero, if performance goals are not met, to as much as $72.83, respectively.
150% of target, if performance goals are meaningfully exceeded.
For all award years, the value of each PSU is equal to the value of one Transformation Program
share of Citi common stock. Dividend equivalents are accrued and paid on In order to provide an incentive for select employees to effectively
the number of earned PSUs after the end of the performance period. execute Citi’s transformation program, in August 2021 the Personnel
PSUs are subject to variable accounting, pursuant to which the associated and Compensation (P&C) Committee of Citigroup’s Board of Directors
value of the award will fluctuate with changes in Citigroup’s stock price approved a program for them to earn additional compensation based on
and the attainment of the specified performance goals for each award, until the achievement of Citi’s transformation goals from August 2021 through
the award is settled solely in cash after the end of the performance period. December 2024 and satisfaction of other conditions. Eligible employees were
The value of the award, subject to the performance goals and taking into notified of their award under the program in November 2021. Performance
account any mandatory equitable adjustments as per the terms of the under the program is divided into three consecutive periods, ending on
award agreement, is estimated using a simulation model that incorporates December 31, 2022, 2023 and 2024. The awards will be subject to variable
multiple valuation assumptions, including the probability of achieving the accounting, pursuant to which the associated value of the award will
specified performance goals of each award. The risk-free rate used in the fluctuate with the attainment of the performance conditions for each tranche
model is based on the applicable U.S. Treasury yield curve. Other significant and changes to Citigroup’s stock price. The amortization commenced after
assumptions for the awards are as follows: the service inception date of November 2021. Payment for each period will
be in cash, in a lump sum, with the third payment indexed to changes in
Valuation assumptions 2021 2020 2019
the value of Citi’s common stock from the service inception date through the
Expected volatility 40.88% 22.26% 25.33% payment date. Earnings generally will be based on collective performance
Expected dividend yield 4.21 2.82 2.67
with respect to Citi’s transformation goals and will be evaluated and approved
by the Committee on an annual basis.
Payments in the event of any category of employment termination or
change in job title or employment status are subject to Citi’s discretion.
Cancellation and clawback is provided for in the event of misconduct and
certain other circumstances. The program applies to senior leaders critical to
helping deliver a successful transformation with the value varying based on
individual compensation levels.

166
Stock Option Programs
All outstanding stock options are fully vested, with the related expense recognized as a charge to income in prior periods. The following table presents
information with respect to stock option activity under Citigroup’s stock option programs: 

2021 2020 2019

Weighted- Weighted- Weighted-
average Intrinsic average Intrinsic average Intrinsic
exercise value exercise value exercise value
Options price per share Options price per share Options price per share
Outstanding, beginning of year 166,650 $47.42 $ 14.24 166,650 $47.42 $32.47 762,225 $101.84 $ —
Canceled — — — — — — (11,365) 40.80 —
Expired — — — — — — (449,916) 142.30 —
Exercised (166,650) 52.50 20.49 — — — (134,294) 39.00 23.50
Outstanding, end of year — $ — $ — 166,650 $47.42 $14.24 166,650 $ 47.42 $32.47
Exercisable, end of year —     166,650     166,650        

As of December 31, 2021, Citigroup no longer has any stock options All equity awards granted since April 19, 2005 have been made pursuant
outstanding. to stockholder-approved stock incentive plans that are administered
by the P&C Committee, which is composed entirely of independent
Other Variable Incentive Compensation non-employee directors.
Citigroup has various incentive plans globally that are used to motivate and At December 31, 2021, approximately 39.0 million shares of Citigroup
reward performance primarily in the areas of sales, operational excellence common stock were authorized and available for grant under Citigroup’s
and customer satisfaction. Participation in these plans is generally limited 2019 Stock Incentive Plan, the only plan from which equity awards are
to employees who are not eligible for discretionary annual incentive awards. currently granted.
Other forms of variable compensation include monthly commissions paid to The 2019 Stock Incentive Plan and predecessor plans permit the use of
financial advisors and mortgage loan officers. treasury stock or newly issued shares in connection with awards granted
Summary under the plans. Treasury shares were used to settle vestings from 2018 to
Except for awards subject to variable accounting, the total expense recognized 2021, and for the first quarter of 2022, except where local laws favor newly
for stock awards represents the grant date fair value of such awards, which is issued shares. The use of treasury stock or newly issued shares to settle
generally recognized as a charge to income ratably over the vesting period, stock awards does not affect the compensation expense recorded in the
other than for awards to retirement-eligible employees and immediately Consolidated Statement of Income for equity awards.
vested awards. Whenever awards are made or are expected to be made to
retirement-eligible employees, the charge to income is accelerated based on
when the applicable conditions to retirement eligibility were or will be met. If
the employee is retirement eligible on the grant date, or the award is vested at
the grant date, Citi recognizes the expense each year equal to the grant date
fair value of the awards that it estimates will be granted in the following year.
Recipients of Citigroup stock awards generally do not have any
stockholder rights until shares are delivered upon vesting or exercise, or after
the expiration of applicable required holding periods. Recipients of deferred
stock awards and deferred cash stock unit awards, however, may, except
as prohibited by applicable regulatory guidance, be entitled to receive or
accrue dividends or dividend-equivalent payments during the vesting period.
Recipients of stock payment awards generally are entitled to vote the shares
in their award during the sale-restriction period. Once a stock award vests,
the shares delivered to the participant are freely transferable, unless they are
subject to a restriction on sale or transfer for a specified period.

167
Incentive Compensation Cost
The following table shows components of compensation expense, relating to
certain of the incentive compensation programs described above:

In millions of dollars 2021 2020 2019

Charges for estimated awards
to retirement-eligible colleagues $ 807 $ 748 $ 683
Amortization of deferred cash awards,
deferred cash stock units and performance
stock units 384 201 355
Immediately vested stock award expense(1) 99 95 82
Amortization of restricted and deferred
stock awards(2) 395 420 404
Other variable incentive compensation 435 627 666
Total $2,120 $2,091 $2,190

(1) Represents expense for immediately vested stock awards that generally were stock payments in lieu
of cash compensation. The expense is generally accrued as cash incentive compensation in the year
prior to grant.
(2) All periods include amortization expense for all unvested awards to non-retirement-eligible colleagues.

168
8. RETIREMENT BENEFITS defined pension benefits to certain U.S. employees. With the exception of
certain employees covered under the prior final pay plan formula, the
Pension and Postretirement Plans
benefits under these plans were frozen in prior years.
The Company has several non-contributory defined benefit pension plans
The plan obligations, plan assets and periodic plan expense for the
covering certain U.S. employees and has various defined benefit pension and
Company’s most significant pension and postretirement benefit plans
termination indemnity plans covering employees outside the U.S.
(Significant Plans) are measured and disclosed quarterly, instead of
The U.S. qualified defined benefit plan was frozen effective January 1,
annually. The Significant Plans captured approximately 90% of the
2008 for most employees. Accordingly, no additional compensation-based
Company’s global pension and postretirement plan obligations as of
contributions have been credited to the cash balance portion of the plan for
December 31, 2021. All other plans (All Other Plans) are measured annually
existing plan participants after 2007. However, certain employees covered
with a December 31 measurement date.
under the prior final pay plan formula continue to accrue benefits. The
Company also offers postretirement health care and life insurance benefits to Net (Benefit) Expense
certain eligible U.S. retired employees, as well as to certain eligible employees The following table summarizes the components of net (benefit) expense
outside the U.S. recognized in the Consolidated Statement of Income for the Company’s
The Company also sponsors a number of non-contributory, nonqualified pension and postretirement plans for Significant Plans and All Other Plans:
pension plans. These plans, which are unfunded, provide supplemental

Pension plans Postretirement benefit plans

U.S. plans Non-U.S. plans U.S. plans Non-U.S. plans
In millions of dollars 2021 2020 2019 2021 2020 2019 2021 2020 2019 2021 2020 2019
Benefits earned during the year $ — $ — $ 1 $ 149 $ 147 $ 146 $ — $— $— $ 6 $ 7 $ 8
Interest cost on benefit obligation 351 378 469 268 246 287 13 17 24 96 93 104
Expected return on assets (683) (824) (821) (253) (245) (281) (13) (17) (18) (84) (77) (84)
Amortization of unrecognized:
Prior service cost (benefit) 2 2 2 (6) 5 (4) (9) (2) — (9) (9) (10)
Net actuarial loss (gain) 228 233 200 62 70 61 (3) — — 13 20 23
Curtailment loss (gain)(1) — — 1 1 (8) (6) — — — — — —
Settlement loss (gain)(1) — — — 10 (1) 6 — — — — — —
Total net (benefit) expense $(102) $(211) $(148) $ 231 $ 214 $ 209 $ (12) $ (2) $ 6 $ 22 $ 34 $ 41

(1) Losses (gains) due to curtailment and settlement relate to repositioning and divestiture activities.

Contributions The following table summarizes the Company’s actual contributions for
The Company’s funding practice for U.S. and non-U.S. pension and the years ended December 31, 2021 and 2020, as well as expected Company
postretirement plans is generally to fund to minimum funding requirements contributions for 2022. Expected contributions are subject to change,
in accordance with applicable local laws and regulations. The Company since contribution decisions are affected by various factors, such as market
may increase its contributions above the minimum required contribution, if performance, tax considerations and regulatory requirements.
appropriate. In addition, management has the ability to change its funding
practices. For the U.S. pension plans, there were no required minimum cash
contributions for 2021 or 2020.

Pension plans(1) Postretirement benefit plans(1)

U.S. plans(2) Non-U.S. plans U.S. plans Non-U.S. plans
In millions of dollars 2022 2021 2020 2022 2021 2020 2022 2021 2020 2022 2021 2020
Contributions made by the Company $— $— $ — $ 74 $104 $115 $— $ — $— $3 $3 $ 4
Benefits paid directly by (reimbursements to) the Company(3) 57 56 56 413 51 43 5 22 (15) 6 5 5

(1) Amounts reported for 2022 are expected amounts.

(2) The U.S. pension plans include benefits paid directly by the Company for the nonqualified pension plans.
(3) Estimated 2022 benefit payments have increased due to the wind-down of Citi’s consumer banking business in Korea, as it is expected that employees who elected the VERP plan will be withdrawing their pension plan
assets. See Note 2 to the Consolidated Financial Statements for additional information.

169
Funded Status and Accumulated Other Comprehensive Income (AOCI)
The following table summarizes the funded status and amounts recognized on the Consolidated Balance Sheet for the Company’s pension and
postretirement plans:
Pension plans Postretirement benefit plans
U.S. plans Non-U.S. plans U.S. plans Non-U.S. plans
In millions of dollars 2021 2020 2021 2020 2021 2020 2021 2020
Change in projected benefit obligation
Projected benefit obligation at beginning of year $13,815 $13,453 $ 8,629 $ 8,105 $ 559 $ 692 $ 1,390 $1,384
Benefits earned during the year — — 149 147 — — 6 7
Interest cost on benefit obligation 351 378 268 246 13 17 96 93
Plan amendments(1) — — 6 (4) — (104) — —
Actuarial (gain) loss(2) (447) 950 (344) 518 (28) (18) (110) 30
Benefits paid, net of participants’ contributions and government subsidy(3) (953) (966) (345) (298) (43) (28) (78) (64)
Settlement gain(4) — — (124) (110) — — — —
Curtailment gain(4) — — (30) (14) — — — —
Foreign exchange impact and other — — (208) 39 — — (135) (60)
Projected benefit obligation at year end $12,766 $13,815 $ 8,001 $ 8,629 $ 501 $ 559 $ 1,169 $1,390
Change in plan assets
Plan assets at fair value at beginning of year $13,309 $12,717 $ 7,831 $ 7,556 $ 331 $ 345 $ 1,146 $1,127
Actual return on assets(2) 565 1,502 217 584 9 29 97 129
Company contributions (reimbursements) 56 56 155 158 22 (15) 8 9
Benefits paid, net of participants’ contributions and government subsidy(3) (953) (966) (345) (298) (43) (28) (78) (64)
Settlement gain(4) — — (124) (110) — — — —
Foreign exchange impact and other — — (120) (59) — — (130) (55)
Plan assets at fair value at year end $12,977 $13,309 $ 7,614 $ 7,831 $ 319 $ 331 $ 1,043 $1,146

Funded status of the plans

Qualified plans(5) $ 894 $ 230 $ (387) $ (798) $(182) $ (228) $ (126) $ (244)
Nonqualified plans(6) (683) (736) — — — — — —
Funded status of the plans at year end $ 211 $ (506) $ (387) $ (798) $(182) $ (228) $ (126) $ (244)

Net amount recognized

Qualified plans
Benefit asset $ 894 $ 230 $ 963 $ 741 $ — $ — $ 165 $ 25
Benefit liability — — (1,350) (1,539) (182) (228) (291) (269)
Qualified plans $ 894 $ 230 $ (387) $ (798) $(182) $ (228) $ (126) $ (244)
Nonqualified plans (683) (736) — — — — — —
Net amount recognized on the balance sheet $ 211 $ (506) $ (387) $ (798) $(182) $ (228) $ (126) $ (244)

Amounts recognized in AOCI  (7)

Net transition obligation $ — $ — $ — $ — $ — $ — $ — $ —

Prior service (cost) benefit (8) (10) 5 12 92 101 47 63
Net actuarial (loss) gain (6,575) (7,132) (1,400) (1,863) 77 56 (182) (348)
Net amount recognized in equity (pretax) $ (6,583) $ (7,142) $(1,395) $(1,851) $ 169 $ 157 $ (135) $ (285)
Accumulated benefit obligation at year end $12,765 $13,812 $ 7,559 $ 8,116 $ 501 $ 559 $ 1,169 $1,390

(1) The U.S. postretirement benefit plan was amended in 2020 to move grandfathered Medicare-eligible retirees to the Medicare individual marketplace.
(2) During 2021, the actuarial gain was primarily due to the increase in global discount rates partially offset by lower than expected asset returns. During 2020, the actuarial loss was primarily due to the decline in global
discount rates partially offset by favorable asset returns.
(3) U.S. postretirement benefit plans were net of Employer Group Waiver Plan subsidies of $11 million and $40 million in 2021 and 2020, respectively.
(4) Curtailment and settlement gains relate to repositioning and divestiture activities.
(5) The U.S. qualified pension plan was fully funded under specified Employee Retirement Income Security Act (ERISA) funding rules as of January 1, 2022 and no minimum required funding is expected for 2022.
(6) The nonqualified plans of the Company are unfunded.
(7) The framework for the Company’s pension oversight process includes monitoring of potential settlement charges for all plans. Settlement accounting is triggered when either the sum of all settlements (including lump
sum payments) for the year is greater than service plus interest costs or if more than 10% of the plan’s projected benefit obligation will be settled. Because some of Citi’s significant plans are frozen and have no
material service cost, settlement accounting may apply in the future.

170
The following table shows the change in AOCI related to the Company’s pension, postretirement and post employment plans:

In millions of dollars 2021 2020 2019

Beginning of year balance, net of tax(1)(2) $(6,864) $(6,809) $(6,257)
Actuarial assumptions changes and plan experience 963 (1,464) (2,300)
Net asset gain (loss) due to difference between actual and expected returns (148) 1,076 1,427
Net amortization 280 318 274
Prior service credit (cost) (7) 108 (7)
Curtailment/settlement gain(3) 11 (8) 1
Foreign exchange impact and other 153 (108) (66)
Change in deferred taxes, net (240) 23 119
Change, net of tax $ 1,012 $ (55) $ (552)

End of year balance, net of tax(1)(2) $(5,852) $(6,864) $(6,809)

(1) See Note 19 to the Consolidated Financial Statements for further discussion of net AOCI balance.
(2) Includes net-of-tax amounts for certain profit-sharing plans outside the U.S.
(3) Curtailment and settlement relate to repositioning and divestiture activities.

At December 31, 2021 and 2020, the aggregate projected benefit obligation (PBO), the aggregate accumulated benefit obligation (ABO) and the aggregate
fair value of plan assets are presented for all defined benefit pension plans with a PBO in excess of plan assets and for all defined benefit pension plans with an
ABO in excess of plan assets as follows:

PBO exceeds fair value of plan assets ABO exceeds fair value of plan assets
U.S. plans(1) Non-U.S. plans U.S. plans(1) Non-U.S. plans
In millions of dollars 2021 2020 2021 2020 2021 2020 2021 2020
Projected benefit obligation $683 $736 $3,966 $4,849 $683 $736 $3,809 $4,723
Accumulated benefit obligation 682 734 3,574 4,400 682 734 3,477 4,329
Fair value of plan assets — — 2,616 3,310 — — 2,486 3,212

(1) As of December 31, 2021 and 2020, only the nonqualified plans’ PBO and ABO exceeded plan assets.

Plan Assumptions
The Company utilizes a number of assumptions to determine plan
obligations and expenses. Changes in one or a combination of these
assumptions will have an impact on the Company’s pension and
postretirement PBO, funded status and (benefit) expense. Changes in the
plans’ funded status resulting from changes in the PBO and fair value
of plan assets will have a corresponding impact on Accumulated other
comprehensive income (loss).
The actuarial assumptions at the respective years ended December 31 in
the table below are used to measure the year-end PBO and the net periodic
(benefit) expense for the subsequent year (period). Since Citi’s Significant
Plans are measured on a quarterly basis, the year-end rates for those plans
are used to calculate the net periodic (benefit) expense for the subsequent
year’s first quarter.
As a result of the quarterly measurement process, the net periodic
(benefit) expense for the Significant Plans is calculated at each respective
quarter end based on the preceding quarter-end rates (as shown below for
the U.S. and non-U.S. pension and postretirement plans). The actuarial
assumptions for All Other Plans are measured annually.

171
 Certain assumptions used in determining pension and postretirement During the year 2021 2020 2019
benefit obligations and net benefit expense for the Company’s plans are Discount rate
shown in the following table: U.S. plans
Qualified pension 2.45%/3.10%/ 3.25%/3.20%/ 4.25%/3.85%/
At year end 2021 2020 2.75%/2.80% 2.60%/2.55% 3.45%/3.10%
Discount rate Nonqualified pension 2.35/3.00/ 3.25/3.25/ 4.25/3.90/
U.S. plans 2.70/2.75 2.55/2.50 3.50/3.10
Qualified pension 2.80% 2.45% Postretirement 2.20/2.85/ 3.15/3.20/ 4.20/3.80/
Nonqualified pension 2.80 2.35 2.60/2.65 2.45/2.35 3.35/3.00
Postretirement 2.75 2.20 Non-U.S. pension plans(1)
Non-U.S. pension plans Range(2) -0.25 to 11.15 -0.10 to 11.30 -0.05 to 12.00
Range(1) -0.10 to 11.95 -0.25 to 11.15 Weighted average 3.14 3.65 4.47
Weighted average 3.96 3.14 Non-U.S. postretirement plans(1)
Non-U.S. postretirement plans Range 0.80 to 9.80 0.90 to 9.75 1.75 to 10.75
Range 1.05 to 10.00 0.80 to 8.55 Weighted average 7.42 7.76 9.05
Weighted average 8.28 7.42 Future compensation
Future compensation increase rate(2) increase rate(3)
Non-U.S. pension plans Non-U.S. pension plans(1)
Range 1.30 to 11.25 1.20 to 11.25 Range 1.20 to 11.25 1.50 to 11.50 1.30 to 13.67
Weighted average 3.10 3.10
Weighted average 3.10 3.17 3.16
Expected return on assets
Expected return on assets
U.S. plans
Qualified pension 5.00 5.80 U.S. plans
Postretirement(3) 5.00/1.50 5.80/1.50 Qualified pension(4) 5.80/5.60/ 6.70 6.70
Non-U.S. pension plans 5.60/5.00
Range 0.00 to 11.50 0.00 to 11.50 Postretirement(4) 5.80/1.50 6.70/3.00 6.70/3.00
Weighted average 3.69 3.39 Non-U.S. pension plans(1)
Non-U.S. postretirement plans Range 0.00 to 11.50 0.00 to 11.50 1.00 to 11.50
Range 6.00 to 8.00 5.95 to 8.00 Weighted average 3.39 3.95 4.30
Weighted average 7.99 7.99 Non-U.S. postretirement plans(1)
Range 5.95 to 8.00 6.20 to 8.00 8.00 to 9.20
(1) Due to historically low global interest rates, there were negative discount rates for plans with relatively Weighted average 7.99 7.99 8.01
short duration in certain major markets, such as the Eurozone and Switzerland.
(2) Not material for U.S. plans.
(3) For the years ended 2021 and 2020, the expected return on assets for the VEBA Trust was 1.50%. (1) Reflects rates utilized to determine the quarterly expense for Significant non-U.S. pension and
postretirement plans.
(2) Due to historically low global interest rates, there were negative discount rates for plans with relatively
short duration in certain major markets, such as the Eurozone and Switzerland.
(3) Not material for U.S. plans.
(4) The expected return on assets for the U.S. pension and postretirement plans was lowered from 5.80%
to 5.60% effective April 1, 2021 and to 5.00% effective October 1, 2021 to reflect the change in
target asset allocation.

172
Discount Rate Sensitivities of Certain Key Assumptions
The discount rates for the U.S. pension and postretirement plans were The following tables summarize the effect on pension expense:
selected by reference to a Citigroup-specific analysis using each plan’s
specific cash flows and compared with high-quality corporate bond indices Discount rate
for reasonableness. The discount rates for the non-U.S. pension and One-percentage-point increase
postretirement plans are selected by reference to high-quality corporate bond In millions of dollars 2021 2020 2019
rates in countries that have developed corporate bond markets. However, U.S. plans $ 35  $ 34  $ 28 
where developed corporate bond markets do not exist, the discount rates are Non-U.S. plans (4) (16) (19)
selected by reference to local government bond rates with a premium added
to reflect the additional risk for corporate bonds in certain countries. Effective One-percentage-point decrease
December 31, 2019, the established rounding convention is to the nearest 5 In millions of dollars 2021 2020 2019
bps for all countries. U.S. plans $(49 ) $(52) $(44)
Non-U.S. plans 25 25 32
Expected Return on Assets
The Company determines its assumptions for the expected return on assets The U.S. Qualified Pension Plan was frozen in 2008, and as a result,
for its U.S. pension and postretirement plans using a “building block” most service costs have been eliminated. The pension expense for the U.S.
approach, which focuses on ranges of anticipated rates of return for each Qualified Pension Plan is therefore driven primarily by interest cost rather
asset class. A weighted average range of nominal rates is then determined than by service cost. An increase in the discount rate generally increases
based on target allocations to each asset class. Market performance over pension expense.
a number of earlier years is evaluated covering a wide range of economic For Non-U.S. Pension Plans that are not frozen (in countries such as
conditions to determine whether there are sound reasons for projecting any Mexico, the U.K. and South Korea), there is more service cost. The pension
past trends. expense for the Non-U.S. Plans is driven by both service cost and interest cost.
The Company considers the expected return on assets to be a long-term An increase in the discount rate generally decreases pension expense due to
assessment of return expectations and does not anticipate changing this the greater impact on service cost compared to interest cost.
assumption unless there are significant changes in investment strategy Since the U.S. Qualified Pension Plan was frozen, most of the prospective
or economic conditions. This contrasts with the selection of the discount service cost has been eliminated and the gain/loss amortization period was
rate and certain other assumptions, which are reconsidered annually (or changed to the life expectancy for inactive participants. As a result, pension
quarterly for the Significant Plans) in accordance with GAAP. expense for the U.S. Qualified Pension Plan is driven more by interest costs
The expected return on assets reflects the expected annual appreciation than service costs, and an increase in the discount rate would increase
of the plan assets and reduces the Company’s annual pension expense. The pension expense, while a decrease in the discount rate would decrease
expected return on assets is deducted from the sum of service cost, interest pension expense.
cost and other components of pension expense to arrive at the net pension The following tables summarize the effect on pension expense:
(benefit) expense.
The following table shows the expected return on assets used in Expected return on assets
determining the Company’s pension expense compared to the actual One-percentage-point increase
return on assets during 2021, 2020 and 2019 for the U.S. pension and In millions of dollars 2021 2020 2019
postretirement plans: U.S. plans $(124) $(123) $(123)
Non-U.S. plans (70) (66) (64)
U.S. plans
(During the year) 2021 2020 2019
Expected return on assets One-percentage-point decrease
U.S. pension and 5.80%/5.60%/ In millions of dollars 2021 2020 2019
postretirement trust 5.60%/5.00% 6.70% 6.70%
U.S. plans $124  $123  $123 
VEBA trust 1.50 3.00 3.00
Non-U.S. plans 70  66  64 
Actual return on assets(1)
U.S. pension and
postretirement trust 5.14 12.84 15.20
VEBA trust 1.52 2.11 1.91 to 2.76

(1) Actual return on assets is presented net of fees.

173
Health Care Cost Trend Rate Interest Crediting Rate
Assumed health care cost trend rates were as follows: The Company has cash balance plans and other plans with promised interest
crediting rates. For these plans, the interest crediting rates are set in line with
2021 2020 plan rules or country legislation and do not change with market conditions.
Health care cost increase rate for U.S. plans    
Following year 6.25% 6.50% Weighted average interest
Ultimate rate to which cost increase is assumed to decline 5.00 5.00 crediting rate
At year end 2021 2020 2019
Year in which the ultimate rate is reached 2027 2027
U.S. plans 1.80% 1.45% 2.25%
Health care cost increase rate for non-U.S. plans Non-U.S. plans 1.61 1.60 1.61
(weighted average)    
Following year 6.92% 6.85%
Ultimate rate to which cost increase is assumed to decline 6.92 6.85
Year in which the ultimate rate is reached 2022 2021

Plan Assets
Citigroup’s pension and postretirement plans’ asset allocations for the U.S. plans and the target allocations by asset category based on asset fair values are
as follows:

Target asset U.S. pension assets U.S. postretirement assets

allocation at December 31, at December 31,
Asset category(1) 2022 2021 2020 2021 2020
Equity securities(2) 0–22% 7 % 16 % 7 % 16 %
Debt securities(3) 55–114 72  59  72  59 
Real estate 0–4 2  4  2  4 
Private equity 0–5 6  3  6  3 
Other investments 0–23 13  18  13  18 
Total 100 % 100 % 100 % 100 %

(1) Asset allocations for the U.S. plans are set by investment strategy, not by investment product. For example, private equities with an underlying investment in real estate are classified in the real estate asset category,
not private equity.
(2) Equity securities in the U.S. pension and postretirement plans do not include any Citigroup common stock at the end of 2021 and 2020.
(3) The VEBA Trust for postretirement benefits is primarily invested in cash equivalents and debt securities in 2021 and 2020 and is not reflected in the table above.

Third-party investment managers and advisors provide their services to Citigroup’s pension and postretirement plans’ weighted-average asset
Citigroup’s U.S. pension and postretirement plans. Assets are rebalanced as allocations for the non-U.S. plans and the actual ranges, and the weighted-
the Company’s Pension Plan Investment Committee deems appropriate. average target allocations by asset category based on asset fair values, are
Citigroup’s investment strategy, with respect to its assets, is to maintain a as follows:
globally diversified investment portfolio across several asset classes that,
when combined with Citigroup’s contributions to the plans, will maintain the
plans’ ability to meet all required benefit obligations.

Non-U.S. pension plans

Target asset Actual range Weighted-average
allocation at December 31, at December 31,
Asset category(1) 2022 2021 2020 2021 2020
Equity securities 0–100% 0–100% 0–100% 16 % 15 %
Debt securities 0–100 0–100 0–100 76  77 
Real estate 0–15 0–14 0–12 1  1 
Other investments 0–100 0–100 0–100 7  7 
Total 100 % 100 %

(1) Similar to the U.S. plans, asset allocations for certain non-U.S. plans are set by investment strategy, not by investment product.

174
 Non-U.S. postretirement plans
Target asset Actual range Weighted-average
allocation at December 31, at December 31,
Asset category(1) 2022 2021 2020 2021 2020
Equity securities 0–42% 0–42% 0–38% 41 % 38 %
Debt securities 54–100 53–100 56–100 53  56 
Other investments 0–4 0–6 0–6 6  6 
Total 100 % 100 %

(1) Similar to the U.S. plans, asset allocations for certain non-U.S. plans are set by investment strategy, not by investment product.

Fair Value Disclosure Certain investments may transfer between the fair value hierarchy
For information on fair value measurements, including descriptions of classifications during the year due to changes in valuation methodology and
Levels 1, 2 and 3 of the fair value hierarchy and the valuation methodology pricing sources.
utilized by the Company, see Notes 1 and 24 to the Consolidated Financial Plan assets by detailed asset categories and the fair value hierarchy are
Statements. Investments measured using the NAV per share practical as follows:
expedient are excluded from Level 1, Level 2 and Level 3 in the tables below.

In millions of dollars U.S. pension and postretirement benefit plans(1)

Fair value measurement at December 31, 2021
Asset categories Level 1 Level 2 Level 3 Total
U.S. equities $ 358 $ —  $ —  $ 358 
Non-U.S. equities 460 —  —  460 
Mutual funds and other registered investment companies 297 —  —  297 
Commingled funds —  1,143  —  1,143 
Debt securities 1,657  5,770  —  7,427 
Annuity contracts —  —  4  4 
Derivatives 2  17  —  19 
Other investments 13 —  25 38 
Total investments $ 2,787  $ 6,930  $ 29 $ 9,746 
Cash and short-term investments $ 635  $ 75 $ —  $ 710 
Other investment liabilities (7) (17) —  (24)
Net investments at fair value $ 3,415  $ 6,988 $ 29 $10,432 
Other investment liabilities redeemed at NAV $ (87 )
Securities valued at NAV 2,951 
Total net assets $13,296 

(1) The investments of the U.S. pension and postretirement plans are commingled in one trust. At December 31, 2021, the allocable interests of the U.S. pension and postretirement plans were 98.0% and 2.0%,
respectively. The investments of the VEBA Trust for postretirement benefits are reflected in the above table.

175
In millions of dollars U.S. pension and postretirement benefit plans(1)
Fair value measurement at December 31, 2020
Asset categories Level 1 Level 2 Level 3 Total
U.S. equities $ 813  $ —  $ —  $ 813
Non-U.S. equities 725  —  —  725 
Mutual funds and other registered investment companies 447  —  —  447 
Commingled funds —  1,056  —  1,056 
Debt securities 1,275  4,430  —  5,705 
Annuity contracts —  —  1  1 
Derivatives 8 6  —  14 
Other investments 16 —  57  73 
Total investments $ 3,284  $ 5,492  $ 58  $ 8,834 
Cash and short-term investments $ 72  $ 1,035  $ —  $ 1,107 
Other investment liabilities (2) (10) —  (12)
Net investments at fair value $ 3,354  $ 6,517  $ 58  $ 9,929 
Other investment receivables redeemed at NAV $ 99 
Securities valued at NAV  3,612 
Total net assets $13,640 

(1) The investments of the U.S. pension and postretirement plans are commingled in one trust. At December 31, 2020, the allocable interests of the U.S. pension and postretirement plans were 98.0% and 2.0%,
respectively. The investments of the VEBA Trust for postretirement benefits are reflected in the above table.

In millions of dollars Non-U.S. pension and postretirement benefit plans

Fair value measurement at December 31, 2021
Asset categories Level 1 Level 2 Level 3 Total
U.S. equities $ 127  $ 19  $ —  $ 146 
Non-U.S. equities 713  92  —  805 
Mutual funds and other registered investment companies 2,888  66 —  2,954 
Commingled funds 21  —  —  21 
Debt securities 4,263  1,341  —  5,604 
Real estate —  3 2  5 
Annuity contracts —  —  2  2 
Derivatives —  239  —  239 
Other investments —  —  318  318 
Total investments $ 8,012  $ 1,760  $ 322  $10,094 
Cash and short-term investments $ 117  $ 5  $ —  $ 122 
Other investment liabilities —  (1,578) —  (1,578)
Net investments at fair value $ 8,129  $ 187 $ 322  $ 8,638
Securities valued at NAV  $ 19 
Total net assets $ 8,657 

176
In millions of dollars Non-U.S. pension and postretirement benefit plans
Fair value measurement at December 31, 2020
Asset categories Level 1 Level 2 Level 3 Total
U.S. equities $ 5 $ 16  $ —  $ 21 
Non-U.S. equities 105  670  —  775 
Mutual funds and other registered investment companies 3,137  73  —  3,210 
Commingled funds 24  —  —  24 
Debt securities 6,705  1,420  —  8,125 
Real estate —  2  2  4 
Annuity contracts —  —  5  5 
Derivatives —  1,005 —  1,005 
Other investments —  —  312  312 
Total investments $ 9,976  $ 3,186  $319  $13,481 
Cash and short-term investments $ 129  $ 3  $ —  $ 132 
Other investment liabilities — (4,650) —  (4,650)
Net investments at fair value $ 10,105  $(1,461 ) $319 $ 8,963 
Securities valued at NAV  $ 14 
Total net assets $ 8,977 

177
Level 3 Rollforward
The reconciliations of the beginning and ending balances during the year for Level 3 assets are as follows:

In millions of dollars U.S. pension and postretirement benefit plans

Beginning Level 3 Purchases, Transfers in Ending Level 3
fair value at Realized Unrealized sales and and/or out of fair value at
Asset categories Dec. 31, 2020 (losses) gains issuances Level 3 Dec. 31, 2021
Annuity contracts $ 1 $— $— $ 2 $— $ 4
Other investments 57 (6) 2 (28) — 25
Total investments $58 $ (6) $ 2 $(25) $— $29

In millions of dollars U.S. pension and postretirement benefit plans

Beginning Level 3 Purchases, Transfers in Ending Level 3
fair value at Realized Unrealized sales and and/or out of fair value at
Asset categories Dec. 31, 2019 (losses) (losses) issuances Level 3 Dec. 31, 2020
Annuity contracts $ 1 $— $— $— $—  $ 1
Other investments 75 (3) 3 (18) —  57
Total investments $76 $ (3) $ 3 $(18) $—  $58

In millions of dollars Non-U.S. pension and postretirement benefit plans

Beginning Level 3 Purchases, Transfers in Ending Level 3
fair value at Unrealized sales and and/or out of fair value at
Asset categories Dec. 31, 2020 gains issuances Level 3 Dec. 31, 2021
Debt securities $ — $— $— $—  $ —
Real estate 2 — — —  2
Annuity contracts 5 — (3) —  2
Other investments 312 4 2 —  318
Total investments $319 $ 4 $ (1) $—  $322

In millions of dollars Non-U.S. pension and postretirement benefit plans

Beginning Level 3 Purchases, Transfers in Ending Level 3
fair value at Unrealized sales and and/or out of fair value at
Asset categories Dec. 31, 2019 (losses) issuances Level 3 Dec. 31, 2020
Debt securities $ 10 $— $(10) $ —  $ —
Real estate 1 1 — —  2
Annuity contracts 5 — — —  5
Other investments 274 23 15 —  312
Total investments $290 $ 24 $ 5 $ —  $319

178
Investment Strategy Estimated Future Benefit Payments
The Company’s global pension and postretirement funds’ investment strategy The Company expects to pay the following estimated benefit payments in
is to invest in a prudent manner for the exclusive purpose of providing future years:
benefits to participants. The investment strategies are targeted to produce
a total return that, when combined with the Company’s contributions Pension plans Postretirement benefit plans
to the funds, will maintain the funds’ ability to meet all required benefit In millions of dollars U.S. plans Non-U.S. plans(1) U.S. plans Non-U.S. plans
obligations. Risk is controlled through diversification of asset types and 2022 $ 956 $ 958 $ 64 $ 71
investments in domestic and international equities, fixed income securities 2023 837 452 50 74
2024 844 460 47 78
and cash and short-term investments. The target asset allocation in most 2025 846 462 44 82
locations outside the U.S. is primarily in equity and debt securities. These 2026 838 467 41 86
allocations may vary by geographic region and country depending on the 2027–2031 3,946 2,428 164 493
nature of applicable obligations and various other regional considerations. (1) Estimated 2022 benefit payments have increased due to the wind-down of Citi’s consumer banking
business in Korea, as it is expected that employees who elected the VERP plan will be withdrawing their
The wide variation in the actual range of plan asset allocations for the pension plan assets. See Note 2 to the Consolidated Financial Statements for additional information.
funded non-U.S. plans is a result of differing local statutory requirements and
economic conditions. For example, in certain countries local law requires Post Employment Plans
that all pension plan assets must be invested in fixed income investments, The Company sponsors U.S. post employment plans that provide income
government funds or local-country securities. continuation and health and welfare benefits to certain eligible U.S.
employees on long-term disability.
Significant Concentrations of Risk in Plan Assets The following table summarizes the funded status and amounts
The assets of the Company’s pension plans are diversified to limit the impact recognized on the Company’s Consolidated Balance Sheet:
of any individual investment. The U.S. qualified pension plan is diversified
across multiple asset classes, with publicly traded fixed income, publicly In millions of dollars 2021 2020
traded equity, hedge funds and real estate representing the most significant
Funded status of the plan at year end $(41) $(40)
asset allocations. Investments in these four asset classes are further diversified
across funds, managers, strategies, vintages, sectors and geographies, Net amount recognized in AOCI (pretax) $(15) $(17)
depending on the specific characteristics of each asset class. The pension
assets for the Company’s non-U.S. Significant Plans are primarily invested in The following table summarizes the net expense recognized in
publicly traded fixed income and publicly traded equity securities. the Consolidated Statement of Income for the Company’s U.S. post
employment plans:
Oversight and Risk Management Practices
The framework for the Company’s pension oversight process includes In millions of dollars 2021 2020 2019
monitoring of retirement plans by plan fiduciaries and/or management
Net expense $10 $9 $9
at the global, regional or country level, as appropriate. Independent Risk
Management contributes to the risk oversight and monitoring for the
Company’s U.S. qualified pension plan and non-U.S. Significant Pension Defined Contribution Plans
Plans. Although the specific components of the oversight process are tailored The Company sponsors defined contribution plans in the U.S. and in certain
to the requirements of each region, country and plan, the following elements non-U.S. locations, all of which are administered in accordance with local
are common to the Company’s monitoring and risk management process: laws. The most significant defined contribution plan is the Citi Retirement
Savings Plan sponsored by the Company in the U.S.
• periodic asset/liability management studies and strategic asset
Under the Citi Retirement Savings Plan, eligible U.S. employees received
allocation reviews;
matching contributions of up to 6% of their eligible compensation for 2021
• periodic monitoring of funding levels and funding ratios; and 2020, subject to statutory limits. In addition, for eligible employees
• periodic monitoring of compliance with asset allocation guidelines; whose eligible compensation is $100,000 or less, a fixed contribution of up
• periodic monitoring of asset class and/or investment manager to 2% of eligible compensation is provided. All Company contributions are
performance against benchmarks; and invested according to participants’ individual elections. The following tables
• periodic risk capital analysis and stress testing. summarize the Company contributions for the defined contribution plans:

U.S. plans
In millions of dollars 2021 2020 2019
Company contributions $436 $414 $404

Non-U.S. plans
In millions of dollars 2021 2020 2019
Company contributions $364 $304 $281

179
9. INCOME TAXES Tax Rate
The reconciliation of the federal statutory income tax rate to the Company’s
Income Tax Provision
effective income tax rate applicable to income from continuing operations
Details of the Company’s income tax provision are presented below:
(before noncontrolling interests and the cumulative effect of accounting
changes) for each of the periods indicated is as follows:
In millions of dollars 2021 2020 2019
Current 2021 2020 2019
Federal $ 522 $ 305 $ 365
Non-U.S. 3,288 4,113 4,352 Federal statutory rate 21.0% 21.0% 21.0%
State 228 440 323 State income taxes, net of federal benefit 2.1 1.3 1.9
Non-U.S. income tax rate differential 1.6 3.5 1.3
Total current income taxes $ 4,038 $ 4,858 $5,040 Nondeductible FDIC premiums 0.6 1.3 0.4
Deferred Tax advantaged investments (2.3) (4.4) (2.3)
Federal $ 1,059 $ (1,430) $ (907) Valuation allowance releases(1) (1.7) (4.4) (3.0)
Non-U.S. 8 (690) 10 Other, net (1.5) 0.2 (0.8)
State 346 (213) 287 Effective income tax rate 19.8% 18.5% 18.5%
Total deferred income taxes $ 1,413 $ (2,333) $ (610) (1) See “Deferred Tax Assets” below for a description of the components.
Provision for income tax on
continuing operations before As set forth in the table above, Citi’s effective tax rate for 2021 was 19.8%,
noncontrolling interests(1) $ 5,451 $ 2,525 $4,430 compared to 18.5% in 2020, primarily due to the reduced effect of permanent
Provision (benefit) for income taxes on
differences, including the valuation allowance releases, on a much higher
discontinued operations — — (27)
Income tax expense (benefit) reported in level of pretax income.
stockholders’ equity related to:
FX translation (146) 23 (11) Deferred Income Taxes
Investment securities (1,367) 1,214 648 Deferred income taxes at December 31 related to the following:
Employee stock plans (6) (4) (16)
Cash flow hedges (476) 455 269
Benefit plans 240 (23) (119) In millions of dollars 2021 2020
FVO DVA 64 (141) (337) Deferred tax assets
Excluded fair value hedges 2 (8) 8 Credit loss deduction $ 5,330 $ 6,791
Retained earnings(2) — (911) 46 Deferred compensation and employee benefits 2,335 2,510
Income taxes before noncontrolling interests $ 3,762 $ 3,130 $4,891 U.S. tax on non-U.S. earnings 1,138 1,195
Investment and loan basis differences 2,970 1,486
(1) Includes the tax on realized investment gains and impairment losses resulting in a provision (benefit) Tax credit and net operating loss carry-forwards 15,620 17,416
of $169 million and $(57) million in 2021, $454 million and $(14) million in 2020 and $373 million Fixed assets and leases 3,064 2,935
and $(9) million in 2019, respectively. Other deferred tax assets 3,549 3,832
(2) 2020 reflects the tax effect of ASU 2016-13 for current expected credit losses (CECL). 2019 reflects
the tax effect of the accounting change for ASU 2016-02 for lease transactions. Gross deferred tax assets $34,006 $36,165
Valuation allowance $ 4,194 $ 5,177
Deferred tax assets after valuation allowance $29,812 $30,988
Deferred tax liabilities
Intangibles and leases $ (2,446) $ (2,526)
Non-U.S. withholding taxes (987) (921)
Interest-related items — (597)
Other deferred tax liabilities (1,590) (2,104)
Gross deferred tax liabilities $ (5,023) $ (6,148)
Net deferred tax assets $24,789 $24,840

180
Unrecognized Tax Benefits The portions of the total unrecognized tax benefits at December 31,
The following is a rollforward of the Company’s unrecognized tax benefits: 2021, 2020 and 2019 that, if recognized, would affect Citi’s tax expense
are $1.0 billion, $0.7 billion and $0.6 billion, respectively. The remaining
In millions of dollars 2021 2020 2019 uncertain tax positions have offsetting amounts in other jurisdictions or are
Total unrecognized tax benefits at January 1 $ 861 $721 $607 temporary differences.
Net amount of increases for current year’s tax positions 97 51 50 Interest and penalties (not included in unrecognized tax benefits above)
Gross amount of increases for prior years’ tax positions 515 217 151 are a component of Provision for income taxes.
Gross amount of decreases for prior years’ tax positions (107) (74) (44)
Amounts of decreases relating to settlements (64) (40) (21)
Reductions due to lapse of statutes of limitation (2) (13) (23)
Foreign exchange, acquisitions and dispositions (4) (1) 1
Total unrecognized tax benefits at December 31 $1,296 $861 $721

2021 2020 2019

In millions of dollars Pretax Net of tax Pretax Net of tax Pretax Net of tax
Total interest and penalties on the Consolidated Balance Sheet at January 1 $118 $ 96 $ 100 $82 $103 $85
Total interest and penalties in the Consolidated Statement of Income 32 24 14 10 (4) (4)
Total interest and penalties on the Consolidated Balance Sheet at December 31(1) 214 164 118 96 100 82

(1) Includes $3 million, $4 million and $3 million for non-U.S. penalties in 2021, 2020 and 2019, respectively. Also includes $0 million, $1 million and $1 million for state penalties in 2021, 2020 and 2019, respectively.

As of December 31, 2021, Citi was under audit by the Internal Revenue Non-U.S. Earnings
Service and other major taxing jurisdictions around the world. It is Non-U.S. pretax earnings approximated $12.9 billion in 2021, $13.8 billion
thus reasonably possible that significant changes in the gross balance in 2020 and $16.7 billion in 2019. As a U.S. corporation, Citigroup and
of unrecognized tax benefits may occur within the next 12 months. The its U.S. subsidiaries are currently subject to U.S. taxation on all non-U.S.
potential range of amounts that could affect Citi’s effective tax rate is between pretax earnings of non-U.S. branches. Beginning in 2018, there is a separate
$0 and $500 million. foreign tax credit (FTC) basket for branches. Also, dividends from a non-U.S.
The following are the major tax jurisdictions in which the Company and subsidiary or affiliate are effectively exempt from U.S. taxation. The Company
its affiliates operate and the earliest tax year subject to examination: provides income taxes on the book over tax basis differences of non-U.S.
subsidiaries except to the extent that such differences are indefinitely
Jurisdiction Tax year reinvested outside the U.S.
United States 2016 At December 31, 2021, $6.5 billion of basis differences of non-U.S. entities
Mexico 2016 was indefinitely invested. At the existing tax rates (including withholding taxes),
New York State and City 2009 additional taxes (net of U.S. FTCs and valuation allowances) of $1.8 billion
United Kingdom 2016
India 2017 would have to be provided if such assertions were reversed.
Singapore 2019 Income taxes are not provided for the Company’s “savings bank base year
Hong Kong 2015 bad debt reserves” that arose before 1988, because under current U.S. tax
Ireland 2017 rules, such taxes will become payable only to the extent that such amounts
are distributed in excess of limits prescribed by federal law. At December 31,
2021, the amount of the base year reserves totaled approximately $358 million
(subject to a tax of $75 million).

181
Deferred Tax Assets The VA for U.S. residual DTA related to its non-U.S. branches was
As of December 31, 2021, Citi had a valuation allowance of $4.2 billion, unchanged at $1.0 billion. In addition, the non-U.S. local VA was unchanged
composed of valuation allowances of $0.8 billion on its general basket at $0.6 billion.
FTC carry-forwards, $1.7 billion on its branch basket FTC carry-forwards, The following table summarizes Citi’s DTAs:
$1.0 billion on its U.S. residual DTA related to its non-U.S. branches,
$0.6 billion on local non-U.S. DTAs and $0.1 billion on state net operating loss In billions of dollars
carry-forwards. There was a decrease of $1.0 billion from the December 31, DTAs balance DTAs balance
Jurisdiction/component(1) December 31, 2021 December 31, 2020
2020 balance of $5.2 billion. The amount of Citi’s valuation allowances (VA)
may change in future years. U.S. federal(2)
In 2021, Citi’s VA for carry-forward FTCs in its branch basket decreased Net operating losses (NOLs)(3) $ 3.2 $ 3.0
Foreign tax credits (FTCs) 2.8 4.4
by $0.7 billion and the related VA for the U.S. tax effect on non-U.S. branch General business credits (GBCs) 4.5 3.6
temporary differences was unchanged. Of this total branch-related change Future tax deductions and credits 8.4 7.9
of $0.7 billion, $0.3 billion impacted the tax provision as discussed below. Total U.S. federal $18.9 $18.9
The remainder of the branch basket-related VA decrease of $0.4 billion was
State and local      
primarily due to carry-forward expirations. New York NOLs $ 1.2 $ 1.5
The level of branch pretax income, the local branch tax rate and the Other state NOLs 0.2 0.1
allocations of overall domestic losses (ODL) and expenses for U.S. tax purposes Future tax deductions 1.8 1.7
to the branch basket are the main factors in determining the branch VA. The Total state and local $ 3.2 $ 3.3
allocated ODL was enhanced by significant taxable income generated in the Non-U.S.    
current year. In addition, the global interest rate environment and balance NOLs $ 0.5 $ 0.6
sheet requirements in non-U.S. branches resulted in a lower relative allocation Future tax deductions 2.2 2.0
of interest expense to non-U.S. branches. The combination of the factors Total non-U.S. $ 2.7 $ 2.6
enumerated resulted in a VA release of $0.2 billion in Citi’s full-year effective Total $24.8 $24.8
tax rate. Citi also released branch basket VA of $0.1 billion with respect to future
(1) All amounts are net of valuation allowances.
years, based upon Citi’s Operating Plan and estimates of future branch basket (2) Included in the net U.S. federal DTAs of $18.9 billion as of December 31, 2021 were deferred tax
factors, as outlined above. liabilities of $2.7 billion that will reverse in the relevant carry-forward period and may be used to
support the DTAs.
In Citi’s general basket for FTCs, changes in the forecasted amount of (3) Consists of non-consolidated tax return NOL carry-forwards that are eventually expected to be utilized
income in U.S. locations derived from sources outside the U.S., in addition in Citigroup’s consolidated tax return. 

to tax examination changes from prior years, could alter the amount of VA
that is needed against such FTCs. The VA for the general basket decreased by
$0.2 billion to $0.8 billion, primarily due to audit adjustments. Citi continues
to look for additional actions that may become prudent and feasible, taking
into account client, regulatory and operational considerations.

182
 The following table summarizes the amounts of tax carry-forwards and The time remaining for utilization of the FTC component has shortened,
their expiration dates:  given the passage of time. Although realization is not assured, Citi
believes that the realization of the recognized net DTAs of $24.8 billion at
In billions of dollars December 31, 2021 is more-likely-than-not, based upon expectations as
December 31, December 31, to future taxable income in the jurisdictions in which the DTAs arise and
Year of expiration 2021 2020
consideration of available tax planning strategies (as defined in ASC 740,
U.S. tax return general basket foreign tax credit Income Taxes).
carry-forwards(1) The majority of Citi’s U.S. federal net operating loss carry-forward and all
2022 $ 0.5 $ 2.3
2023 0.4 0.4 of its New York State and City net operating loss carry-forwards are subject to
2025 1.5 1.4 a carry-forward period of 20 years. This provides enough time to fully utilize
2027 1.1 1.2 the DTAs pertaining to these existing NOL carry-forwards. This is due to Citi’s
Total U.S. tax return general basket foreign tax forecast of sufficient U.S. taxable income and because New York State and
credit carry-forwards $ 3.5 $ 5.3 City continue to tax Citi’s non-U.S. income.
U.S. tax return branch basket foreign tax credit With respect to the FTCs component of the DTAs, the carry-forward
carry-forwards(1)         period is 10 years. Utilization of FTCs in any year is generally limited to 21%
2021 $ — $ 0.7 of foreign source taxable income in that year. However, ODL that Citi has
2022 1.0 1.0
2028 0.6 0.6
incurred of approximately $15 billion as of December 31, 2021 are allowed
2029 0.2 0.2 to be reclassified as foreign source income to the extent of 50%–100%
(at taxpayer’s election) of domestic source income produced in subsequent
Total U.S. tax return branch basket foreign
tax credit carry-forwards $ 1.8 $ 2.5 years. Such resulting foreign source income would support the realization
of the FTC carry-forwards after VA. As noted in the tables above, Citi’s FTC
U.S. tax return general business credit
carry-forwards carry-forwards were $2.8 billion ($5.3 billion before VA) as of December 31,
2032 $ 0.4 $ 0.3 2021, compared to $4.4 billion as of December 31, 2020. Citi believes that it
2033 0.3 0.3 will more-likely-than-not generate sufficient U.S. taxable income within the
2034 0.2 0.2 10-year carry-forward period to be able to utilize the net FTCs after the VA,
2035 0.2 0.2
2036 0.2 0.2 after considering any FTCs produced in the tax return for such period, which
2037 0.5 0.5 must be used prior to any carry-forward utilization.
2038 0.5 0.5
2039 0.7 0.7
2040 0.7 0.7
2041 0.8 —
Total U.S. tax return general business
credit carry-forwards $ 4.5 $ 3.6
U.S. subsidiary separate federal NOL
carry-forwards        
2027 $ 0.1 $ 0.1
2028 0.1 0.1
2030 0.3 0.3
2033 1.6 1.5
2034 2.0 2.0
2035 3.3 3.3
2036 2.1 2.1
2037 1.0 1.0
Unlimited carry-forward period 4.6 3.9
Total U.S. subsidiary separate federal NOL
carry-forwards(2) $15.1 $14.3
New York State NOL carry-forwards (2)
   
2034 $ 6.6 $ 8.1
New York City NOL carry-forwards(2)  
2034 $ 7.2 $ 8.7
Non-U.S. NOL carry-forwards(1)    
Various $ 1.1 $ 1.2

(1) Before valuation allowance.

(2) Pretax.

183
10. EARNINGS PER SHARE
The following table reconciles the income and share data used in the basic and diluted earnings per share (EPS) computations:

In millions of dollars, except per share amounts 2021 2020 2019

Earnings per common share
Income from continuing operations before attribution of noncontrolling interests $ 22,018 $ 11,107  $ 19,471 
Less: Noncontrolling interests from continuing operations 73 40  66 
Net income from continuing operations (for EPS purposes) $ 21,945 $ 11,067  $ 19,405 
Loss from discontinued operations, net of taxes 7 (20) (4)
Citigroup’s net income $ 21,952 $ 11,047  $ 19,401 
Less: Preferred dividends(1) 1,040 1,095  1,109 
Net income available to common shareholders $ 20,912 $ 9,952  $ 18,292 
Less: Dividends and undistributed earnings allocated to employee restricted and deferred shares
with rights to dividends, applicable to basic EPS 154  73  121 
Net income allocated to common shareholders for basic EPS $ 20,758 $ 9,879  $ 18,171 
Weighted-average common shares outstanding applicable to basic EPS (in millions) 2,033.0 2,085.8  2,249.2 

Basic earnings per share(2)      

Income from continuing operations $ 10.21 $ 4.75  $ 8.08 
Discontinued operations — (0.01) — 
Net income per share—basic $ 10.21 $ 4.74  $ 8.08 

Diluted earnings per share      

Net income allocated to common shareholders for basic EPS $ 20,758 $ 9,879  $ 18,171 
Add back: Dividends allocated to employee restricted and deferred shares with rights to dividends
that are forfeitable 31  30  33 
Net income allocated to common shareholders for diluted EPS $ 20,789 $ 9,909  $ 18,204 

Weighted-average common shares outstanding applicable to basic EPS (in millions) $2,033.0 $2,085.8  $2,249.2 
Effect of dilutive securities
Options(3) — 0.1  0.1 
Other employee plans 16.4 13.1  16.0 
Adjusted weighted-average common shares outstanding applicable to diluted EPS (in millions) (4) 2,049.4  2,099.0  2,265.3 

Diluted earnings per share (2)

Income from continuing operations $ 10.14 $ 4.73  $ 8.04 

Discontinued operations — (0.01) — 
Net income per share—diluted $ 10.14 $ 4.72  $ 8.04 

(1) See Note 20 to the Consolidated Financial Statements for the potential future impact of preferred stock dividends.
(2) Due to rounding, earnings per share on continuing operations and discontinued operations may not sum to earnings per share on net income.
(3) During 2021, there were no weighted-average options outstanding. During 2021, no significant options to purchase shares of common stock were outstanding. During 2020, weighted-average options to purchase
0.1 million shares of common stock were outstanding but not included in the computation of earnings per share because the weighted-average exercise price of $56.25 per share was anti-dilutive.
(4) Due to rounding, weighted-average common shares outstanding applicable to basic EPS and the effect of dilutive securities may not sum to weighted-average common shares outstanding applicable to diluted EPS.

184
11. SECURITIES BORROWED, LOANED AND SUBJECT TO Collateral typically consists of government and government-agency
REPURCHASE AGREEMENTS securities, corporate and municipal bonds, equities and mortgage- and other
Securities borrowed and purchased under agreements to resell, at their asset-backed securities.
respective carrying values, consisted of the following: The resale and repurchase agreements are generally documented
under industry standard agreements that allow the prompt close-out of all
December 31,
transactions (including the liquidation of securities held) and the offsetting
In millions of dollars 2021 2020 of obligations to return cash or securities by the non-defaulting party,
following a payment default or other type of default under the relevant
Securities purchased under
agreements to resell $236,252 $204,655  master agreement. Events of default generally include (i) failure to deliver
Deposits paid for securities borrowed 91,042 90,067  cash or securities as required under the transaction, (ii) failure to provide
Total, net(1) $327,294 $294,722  or return cash or securities as used for margining purposes, (iii) breach
Allowance for credit losses on of representation, (iv) cross-default to another transaction entered into
securities purchased and borrowed(2) (6) (10) among the parties, or, in some cases, their affiliates and (v) a repudiation
Total, net of allowance $327,288 $294,712  of obligations under the agreement. The counterparty that receives the
securities in these transactions is generally unrestricted in its use of the
Securities loaned and sold under agreements to repurchase, at their securities, with the exception of transactions executed on a tri-party basis,
respective carrying values, consisted of the following: where the collateral is maintained by a custodian and operational limitations
may restrict its use of the securities.
December 31,
A substantial portion of the resale and repurchase agreements is
In millions of dollars 2021 2020 recorded at fair value, as described in Notes 24 and 25 to the Consolidated
Financial Statements. The remaining portion is carried at the amount of
Securities sold under agreements
to repurchase $174,255 $181,194  cash initially advanced or received, plus accrued interest, as specified in the
Deposits received for securities loaned 17,030 18,331  respective agreements.
Total, net(1) $191,285 $199,525 
The securities borrowing and lending agreements also represent
collateralized financing transactions similar to the resale and repurchase
(1) The above tables do not include securities-for-securities lending transactions of $3.6 billion and
$6.8 billion at December 31, 2021 and 2020, respectively, where the Company acts as lender and
agreements. Collateral typically consists of government and government-
receives securities that can be sold or pledged as collateral. In these transactions, the Company agency securities and corporate debt and equity securities.
recognizes the securities received at fair value within Other assets and the obligation to return those
securities as a liability within Brokerage payables. Similar to the resale and repurchase agreements, securities borrowing
(2) See Note 15 to the Consolidated Financial Statements for further information. and lending agreements are generally documented under industry standard
agreements that allow the prompt close-out of all transactions (including
The resale and repurchase agreements represent collateralized financing the liquidation of securities held) and the offsetting of obligations to return
transactions. Citi executes these transactions primarily through its broker- cash or securities by the non-defaulting party, following a payment default
dealer subsidiaries to facilitate customer matched-book activity and to or other default by the other party under the relevant master agreement.
efficiently fund a portion of Citi’s trading inventory. Transactions executed by Events of default and rights to use securities under the securities borrowing
Citi’s bank subsidiaries primarily facilitate customer financing activity. and lending agreements are similar to the resale and repurchase agreements
To maintain reliable funding under a wide range of market conditions, referenced above.
including under periods of stress, Citi manages these activities by taking A substantial portion of securities borrowing and lending agreements is
into consideration the quality of the underlying collateral and stipulating recorded at the amount of cash advanced or received. The remaining portion
financing tenor. Citi manages the risks in its collateralized financing is recorded at fair value as the Company elected the fair value option for
transactions by conducting daily stress tests to account for changes in certain securities borrowed and loaned portfolios, as described in Note 25
capacity, tenors, haircut, collateral profile and client actions. In addition, Citi to the Consolidated Financial Statements. With respect to securities loaned,
maintains counterparty diversification by establishing concentration triggers the Company receives cash collateral in an amount generally in excess
and assessing counterparty reliability and stability under stress. of the market value of the securities loaned. The Company monitors the
It is the Company’s policy to take possession of the underlying collateral, market value of securities borrowed and securities loaned on a daily basis
monitor its market value relative to the amounts due under the agreements and obtains or posts additional collateral in order to maintain contractual
and, when necessary, require prompt transfer of additional collateral in margin protection.
order to maintain contractual margin protection. For resale and repurchase
agreements, when necessary, the Company posts additional collateral in
order to maintain contractual margin protection.

185
 The enforceability of offsetting rights incorporated in the master netting particular counterparty type may be nonexistent or unclear as overlapping
agreements for resale and repurchase agreements, and securities borrowing regimes may exist. For example, this may be the case for certain sovereigns,
and lending agreements, is evidenced to the extent that (i) a supportive municipalities, central banks and U.S. pension plans.
legal opinion has been obtained from counsel of recognized standing that The following tables present the gross and net resale and repurchase
provides the requisite level of certainty regarding the enforceability of these agreements and securities borrowing and lending agreements and the related
agreements and (ii) the exercise of rights by the non-defaulting party to offsetting amounts permitted under ASC 210-20-45. The tables also include
terminate and close out transactions on a net basis under these agreements amounts related to financial instruments that are not permitted to be offset
will not be stayed or avoided under applicable law upon an event of default under ASC 210-20-45, but would be eligible for offsetting to the extent that an
including bankruptcy, insolvency or similar proceeding. event of default has occurred and a legal opinion supporting enforceability
A legal opinion may not have been sought or obtained for certain of the offsetting rights has been obtained. Remaining exposures continue to
jurisdictions where local law is silent or sufficiently ambiguous to determine be secured by financial collateral, but the Company may not have sought
the enforceability of offsetting rights or where adverse case law or conflicting or been able to obtain a legal opinion evidencing enforceability of the
regulation may cast doubt on the enforceability of such rights. In some offsetting right.
jurisdictions and for some counterparty types, the insolvency law for a

As of December 31, 2021

Gross amounts Net amounts of Amounts not offset on the
Gross amounts offset on the assets included on Consolidated Balance Sheet
of recognized Consolidated the Consolidated but eligible for offsetting Net
In millions of dollars assets Balance Sheet(1) Balance Sheet upon counterparty default(2) amounts(3)
Securities purchased under agreements to resell $367,594 $ 131,342 $236,252 $205,349 $ 30,903
Deposits paid for securities borrowed 107,041 15,999 91,042 17,326 73,716
Total $474,635 $ 147,341 $327,294 $222,675 $104,619

Gross amounts Net amounts of Amounts not offset on the

Gross amounts offset on the liabilities included Consolidated Balance Sheet
of recognized Consolidated on the Consolidated but eligible for offsetting Net
In millions of dollars liabilities Balance Sheet(1) Balance Sheet upon counterparty default(2) amounts(3)
Securities sold under agreements to repurchase $305,597 $ 131,342 $174,255 $85,184 $ 89,071
Deposits received for securities loaned 33,029 15,999 17,030 2,868 14,162
Total $338,626 $ 147,341 $191,285 $88,052 $103,233

As of December 31, 2020

Gross amounts Net amounts of Amounts not offset on the
Gross amounts offset on the assets included on Consolidated Balance Sheet
of recognized Consolidated the Consolidated but eligible for offsetting Net
In millions of dollars assets Balance Sheet(1) Balance Sheet upon counterparty default(2) amounts(3)
Securities purchased under agreements to resell $362,025 $ 157,370 $204,655 $159,232 $ 45,423
Deposits paid for securities borrowed 96,425 6,358 90,067 13,474 76,593
Total $458,450 $ 163,728 $294,722 $172,706 $122,016

Gross amounts Net amounts of Amounts not offset on the

Gross amounts offset on the liabilities included Consolidated Balance Sheet
of recognized Consolidated on the Consolidated but eligible for offsetting Net
In millions of dollars liabilities Balance Sheet(1) Balance Sheet upon counterparty default(2) amounts(3)
Securities sold under agreements to repurchase $338,564 $ 157,370 $181,194 $ 95,563 $85,631
Deposits received for securities loaned 24,689 6,358 18,331 7,982 10,349
Total $363,253 $ 163,728 $199,525 $103,545 $95,980

(1) Includes financial instruments subject to enforceable master netting agreements that are permitted to be offset under ASC 210-20-45.
(2) Includes financial instruments subject to enforceable master netting agreements that are not permitted to be offset under ASC 210-20-45, but would be eligible for offsetting to the extent that an event of default has
occurred and a legal opinion supporting enforceability of the offsetting right has been obtained.
(3) Remaining exposures continue to be secured by financial collateral, but the Company may not have sought or been able to obtain a legal opinion evidencing enforceability of the offsetting right.

186
 The following tables present the gross amounts of liabilities associated with repurchase agreements and securities lending agreements by remaining
contractual maturity:

As of December 31, 2021

Open and Greater than
In millions of dollars overnight Up to 30 days 31–90 days 90 days Total
Securities sold under agreements to repurchase $127,679 $ 93,257 $32,908 $51,753 $305,597
Deposits received for securities loaned 23,387 6  1,392 8,244 33,029
Total $151,066 $ 93,263 $34,300 $59,997 $338,626

As of December 31, 2020

Open and Greater than
In millions of dollars overnight Up to 30 days 31–90 days 90 days Total
Securities sold under agreements to repurchase $160,754 $98,226 $41,679 $37,905 $338,564
Deposits received for securities loaned 17,038 3 2,770 4,878 24,689
Total $177,792 $98,229 $44,449 $42,783 $363,253

The following tables present the gross amounts of liabilities associated with repurchase agreements and securities lending agreements by class of
underlying collateral:

As of December 31, 2021

Securities
Repurchase lending
In millions of dollars agreements agreements Total
U.S. Treasury and federal agency securities $ 85,861 $ 90 $ 85,951
State and municipal securities 1,053 — 1,053
Foreign government securities 133,352 212 133,564
Corporate bonds 20,398 152 20,550
Equity securities 25,653 32,517 58,170
Mortgage-backed securities 33,573 — 33,573
Asset-backed securities 1,681 — 1,681
Other 4,026 58 4,084
Total $305,597 $33,029 $338,626

As of December 31, 2020

Securities
Repurchase lending
In millions of dollars agreements agreements Total
U.S. Treasury and federal agency securities $112,437 $ — $112,437
State and municipal securities 664 2 666
Foreign government securities 130,017 194 130,211
Corporate bonds 20,149 78 20,227
Equity securities 21,497 24,149 45,646
Mortgage-backed securities 45,566 — 45,566
Asset-backed securities 3,307 — 3,307
Other 4,927 266 5,193
Total $338,564 $24,689 $363,253

187
12. BROKERAGE RECEIVABLES AND BROKERAGE
PAYABLES
The Company has receivables and payables for financial instruments sold
to and purchased from brokers, dealers and customers, which arise in the
ordinary course of business. Citi is exposed to risk of loss from the inability of
brokers, dealers or customers to pay for purchases or to deliver the financial
instruments sold, in which case Citi would have to sell or purchase the
financial instruments at prevailing market prices. Credit risk is reduced to the
extent that an exchange or clearing organization acts as a counterparty to
the transaction and replaces the broker, dealer or customer in question.
Citi seeks to protect itself from the risks associated with customer activities
by requiring customers to maintain margin collateral in compliance with
regulatory and internal guidelines. Margin levels are monitored daily, and
customers deposit additional collateral as required. Where customers cannot
meet collateral requirements, Citi may liquidate sufficient underlying
financial instruments to bring the customer into compliance with the
required margin level.
Exposure to credit risk is impacted by market volatility, which may
impair the ability of clients to satisfy their obligations to Citi. Credit limits
are established and closely monitored for customers and for brokers and
dealers engaged in forwards, futures and other transactions deemed to be
credit sensitive.
Brokerage receivables and Brokerage payables consisted of
the following:

December 31,
In millions of dollars 2021 2020
Receivables from customers, net $26,403 $18,097
Receivables from brokers, dealers and clearing
organizations 27,937 26,709
Total brokerage receivables(1) $54,340 $44,806

Payables to customers $52,158 $39,319

Payables to brokers, dealers and clearing organizations 9,272 11,165
Total brokerage payables(1) $61,430 $50,484

(1) Includes brokerage receivables and payables recorded by Citi broker-dealer entities that are
accounted for in accordance with the AICPA Accounting Guide for Brokers and Dealers in Securities as
codified in ASC 940-320.

188
13. INVESTMENTS
The following table presents Citi’s investments by category:

December 31,
In millions of dollars 2021 2020
Debt securities available-for-sale (AFS) $288,522 $335,084
Debt securities held-to-maturity (HTM)(1) 216,963 104,943
Marketable equity securities carried at fair value(2) 543 515
Non-marketable equity securities carried at fair value(2) 489 551
Non-marketable equity securities measured using the measurement alternative(3) 1,413 962
Non-marketable equity securities carried at cost(4) 4,892 5,304
Total investments $512,822 $447,359

(1) Carried at adjusted amortized cost basis, net of any ACL.

(2) Unrealized gains and losses are recognized in earnings.
(3) Impairment losses and adjustments to the carrying value as a result of observable price changes are recognized in earnings. See “Non-Marketable Equity Securities Not Carried at Fair Value” below.
(4) Represents shares issued by the Federal Reserve Bank, Federal Home Loan Banks and certain exchanges of which Citigroup is a member.

The following table presents interest and dividend income on investments:

In millions of dollars 2021 2020 2019

Taxable interest $ 6,975 $ 7,554 $ 9,269
Interest exempt from U.S. federal income tax 279 301 404
Dividend income 134 134 187
Total interest and dividend income on investments $ 7,388 $ 7,989 $ 9,860

The following table presents realized gains and losses on the sales of investments, which exclude impairment losses:

In millions of dollars 2021 2020 2019

Gross realized investment gains $ 860 $1,895 $1,599
Gross realized investment losses (195) (139) (125)
Net realized gains on sales of investments $ 665 $1,756 $1,474

189
Debt Securities Available-for-Sale
The amortized cost and fair value of AFS debt securities were as follows:

December 31, 2021 December 31, 2020

Gross Gross Allowance Gross Gross Allowance
Amortized unrealized unrealized for credit Fair Amortized unrealized unrealized for credit
In millions of dollars cost gains losses losses value cost gains losses losses Fair value
Debt securities AFS
Mortgage-backed securities(1)
U.S. government-sponsored agency
guaranteed $ 33,064 $ 453 $ 301 $ — $ 33,216 $ 42,836 $1,134 $ 52 $ — $ 43,918
Non-U.S. residential 380 1 1 — 380 568 3 — — 571
Commercial 25 — — — 25 49 1 — — 50
Total mortgage-backed securities $ 33,469 $ 454 $ 302 $ — $ 33,621 $ 43,453 $1,138 $ 52 $ — $ 44,539
U.S. Treasury and federal agency securities
U.S. Treasury $122,669 $ 615 $ 844 $ — $122,440 $144,094 $2,108 $ 49 $ — $146,153
Agency obligations — — — — — 50 1 — — 51
Total U.S. Treasury
and federal agency securities $122,669 $ 615 $ 844 $ — $122,440 $144,144 $2,109 $ 49 $ — $146,204
State and municipal $ 2,643 $ 79 $ 101 $ — $ 2,621 $ 3,753 $ 123 $ 157 $ — $ 3,719
Foreign government 119,426 337 1,023 — 118,740 123,467 1,623 122 — 124,968
Corporate 5,972 33 77 8 5,920 10,444 152 91 5 10,500
Asset-backed securities(1) 304 — 1 — 303 277 5 4 — 278
Other debt securities 4,880 1 4 — 4,877 4,871 5 — — 4,876
Total debt securities AFS $289,363 $ 1,519 $ 2,352 $ 8 $288,522 $330,409 $5,155 $ 475 $ 5 $335,084

(1) The Company invests in mortgage- and asset-backed securities, which are typically issued by VIEs through securitization transactions. The Company’s maximum exposure to loss from these VIEs is equal to the carrying
amount of the securities, which is reflected in the table above. For mortgage- and asset-backed securitizations in which the Company has other involvement, see Note 21 to the Consolidated Financial Statements.

At December 31, 2021, the amortized cost of fixed income securities unrealized losses on fixed income investments that have been in a
exceeded their fair value by $2,352 million. Of the $2,352 million, gross-unrealized-loss position for a year or more and, of these, 99% were
$1,895 million represented unrealized losses on fixed income investments rated investment grade. Of the $457 million, $197 million represents foreign
that have been in a gross-unrealized-loss position for less than a year and, government securities.
of these, 77% were rated investment grade; and $457 million represented

190
The following table shows the fair value of AFS debt securities that have been in an unrealized loss position:

Less than 12 months 12 months or longer Total

Gross Gross Gross
Fair unrealized Fair unrealized Fair unrealized
In millions of dollars value losses value losses value losses
December 31, 2021
Debt securities AFS
Mortgage-backed securities
U.S. government-sponsored agency guaranteed $ 17,039 $ 270 $ 698 $ 31 $ 17,737 $ 301
Non-U.S. residential 96 1 1 — 97 1
Commercial — — — — — —
Total mortgage-backed securities $ 17,135 $ 271 $ 699 $ 31 $ 17,834 $ 302
U.S. Treasury and federal agency securities
U.S. Treasury $ 56,448 $ 713 $ 6,310 $131 $ 62,758 $ 844
Agency obligations — — — — — —
Total U.S. Treasury and federal agency securities $ 56,448 $ 713 $ 6,310 $131 $ 62,758 $ 844
State and municipal $ 229 $ 3 $ 874 $ 98 $ 1,103 $ 101
Foreign government 64,319 826 9,924 197 74,243 1,023
Corporate 2,655 77 22 — 2,677 77
Asset-backed securities 108 1 — — 108 1
Other debt securities 3,439 4 — — 3,439 4
Total debt securities AFS $144,333 $1,895 $17,829 $457 $162,162 $2,352

December 31, 2020

Debt securities AFS
Mortgage-backed securities
U.S. government-sponsored agency guaranteed $ 3,588 $ 30 $ 298 $ 22 $ 3,886 $ 52
Non-U.S. residential 1 — — — 1 —
Commercial 7 — 4 — 11 —
Total mortgage-backed securities $ 3,596 $ 30 $ 302 $ 22 $ 3,898 $ 52
U.S. Treasury and federal agency securities
U.S. Treasury $ 25,031 $ 49 $ — $ — $ 25,031 $ 49
Agency obligations 50 — — — 50 —
Total U.S. Treasury and federal agency securities $ 25,081 $ 49 $ — $ — $ 25,081 $ 49
State and municipal $ 836 $ 34 $ 893 $123 $ 1,729 $ 157
Foreign government 29,344 61 3,502 61 32,846 122
Corporate 1,083 90 24 1 1,107 91
Asset-backed securities 194 3 39 1 233 4
Other debt securities 182 — — — 182 —
Total debt securities AFS $ 60,316 $ 267 $ 4,760 $208 $ 65,076 $ 475

191
The following table presents the amortized cost and fair value of AFS debt securities by contractual maturity dates:

December 31,
2021 2020
Weighted
Amortized Fair average Amortized Fair
In millions of dollars cost value yield(1) cost value
Mortgage-backed securities(2)
Due within 1 year $ 188 $ 189 0.79% $ 27 $ 27
After 1 but within 5 years 211 211 1.07 567 571
After 5 but within 10 years 523 559 3.41 688 757
After 10 years 32,547 32,662 2.73 42,171 43,184
Total $ 33,469 $ 33,621 2.72% $ 43,453 $ 44,539
U.S. Treasury and federal agency securities
Due within 1 year $ 34,321 $ 34,448 1.05% $ 34,834 $ 34,951
After 1 but within 5 years 87,987 87,633 0.81 108,160 110,091
After 5 but within 10 years 361 359 1.42 1,150 1,162
After 10 years — — — — —
Total $122,669 $122,440 0.87% $144,144 $146,204
State and municipal
Due within 1 year $ 40 $ 40 2.09% $ 427 $ 428
After 1 but within 5 years 121 124 3.16 189 198
After 5 but within 10 years 156 161 3.18 276 267
After 10 years 2,326 2,296 3.15 2,861 2,826
Total $ 2,643 $ 2,621 3.14% $ 3,753 $ 3,719
Foreign government
Due within 1 year $ 49,263 $ 49,223 2.53% $ 48,133 $ 48,258
After 1 but within 5 years 64,555 63,961 3.14 67,365 68,586
After 5 but within 10 years 3,736 3,656 1.72 5,908 6,011
After 10 years 1,872 1,900 1.52 2,061 2,113
Total $119,426 $118,740 2.82% $123,467 $124,968
All other(3)
Due within 1 year $ 5,175 $ 5,180 0.94% $ 6,661 $ 6,665
After 1 but within 5 years 5,177 5,149 1.91 7,814 7,891
After 5 but within 10 years 750 750 2.08 1,018 1,034
After 10 years 54 21 4.28 99 64
Total $ 11,156 $ 11,100 1.48% $ 15,592 $ 15,654
Total debt securities AFS $289,363 $288,522 1.94% $330,409 $335,084

(1) Weighted average yields are weighted based on the amortized cost of each security. The average yield considers the contractual coupon, amortization of premiums and accretion of discounts and excludes the effects of
any related hedging derivatives.
(2) Includes mortgage-backed securities of U.S. government-sponsored agencies. The Company invests in mortgage- and asset-backed securities, which are typically issued by VIEs through securitization transactions.
(3) Includes corporate, asset-backed and other debt securities.

192
Debt Securities Held-to-Maturity
The carrying value and fair value of debt securities HTM were as follows:

Gross Gross
Amortized unrealized unrealized Fair
In millions of dollars cost, net(1) gains losses value
December 31, 2021
Debt securities HTM
Mortgage-backed securities(2)
U.S. government-sponsored agency guaranteed $ 63,885 $1,076 $ 925 $ 64,036
Non-U.S. residential 736 3 — 739
Commercial 1,070 4 2 1,072
Total mortgage-backed securities $ 65,691 $1,083 $ 927 $ 65,847
U.S. Treasury securities $111,819 $ 30 $1,632 $110,217
State and municipal(3) 8,923 589 12 9,500
Foreign government 1,651 4 36 1,619
Asset-backed securities(2) 28,879 8 32 28,855
Total debt securities HTM, net $216,963 $1,714 $2,639 $216,038
December 31, 2020
Debt securities HTM
Mortgage-backed securities(2)
U.S. government-sponsored agency guaranteed $ 49,004 $2,162 $ 15 $ 51,151
Non-U.S. residential 1,124 3 1 1,126
Commercial 825 1 1 825
Total mortgage-backed securities $ 50,953 $2,166 $ 17 $ 53,102
U.S. Treasury securities (4)
$ 21,293 $ 4 $ 55 $ 21,242
State and municipal 9,185 755 11 9,929
Foreign government 1,931 91 — 2,022
Asset-backed securities(2) 21,581 6 92 21,495
Total debt securities HTM $104,943 $3,022 $ 175 $107,790

(1) Amortized cost is reported net of ACL of $87 million and $86 million at December 31, 2021 and December 31, 2020, respectively.
(2) The Company invests in mortgage- and asset-backed securities. These securitizations are generally considered VIEs. The Company’s maximum exposure to loss from these VIEs is equal to the carrying amount of the
securities, which is reflected in the table above. For mortgage- and asset-backed securitizations in which the Company has other involvement, see Note 21 to the Consolidated Financial Statements.
(3) In February 2021, the Company transferred $237 million of state and municipal bonds from AFS classification to HTM classification in accordance with ASC 320. At the time of transfer, the securities were in an
unrealized gain position of $14 million. The gain amounts will remain in AOCI and will be amortized over the remaining life of the securities.
(4) In August 2020, Citibank transferred $13.1 billion of investments in U.S. Treasury securities from AFS classification to HTM classification in accordance with ASC 320. At the time of transfer, the securities were in an
unrealized gain position of $144 million. The gain amounts will remain in AOCI and will be amortized over the remaining life of the securities.

The Company has the positive intent and ability to hold these securities related changes in fair value of HTM debt securities that have suffered credit
to maturity or, where applicable, until the exercise of any issuer call option, impairment recorded in earnings. The AOCI balance related to HTM debt
absent any unforeseen significant changes in circumstances, including securities is amortized as an adjustment of yield, in a manner consistent with
deterioration in credit or changes in regulatory capital requirements. the accretion of any difference between the carrying value at the transfer date
The net unrealized losses classified in AOCI for HTM debt securities and par value of the same debt securities.
primarily relate to debt securities previously classified as AFS that
were transferred to HTM, and include any cumulative fair value hedge
adjustments. The net unrealized loss amount also includes any non-credit-

193
The following table presents the carrying value and fair value of HTM debt securities by contractual maturity dates:

December 31,
2021 2020
Weighted
In millions of dollars Amortized cost(1) Fair value average yield(2) Amortized cost(1) Fair value
Mortgage-backed securities
Due within 1 year $ 152 $ 151 1.70% $ 81 $ 81
After 1 but within 5 years 684 725 3.01 463 477
After 5 but within 10 years 1,655 1,739 2.74 1,699 1,873
After 10 years 63,200 63,232 2.55 48,710 50,671
Total $ 65,691 $ 65,847 2.56% $ 50,953 $ 53,102
U.S. Treasury securities
After 1 but within 5 years $ 65,498 $ 64,516 0.69% $ 18,955 $ 19,127
After 5 but within 10 years 46,321 45,701 1.15 2,338 2,115
After 10 years — — — — —
Total $111,819 $110,217 0.88% $ 21,293 $ 21,242
State and municipal
Due within 1 year $ 51 $ 50 3.82% $ 6 $ 6
After 1 but within 5 years 166 170 2.82 139 142
After 5 but within 10 years 908 951 3.23 818 869
After 10 years 7,798 8,329 2.65 8,222 8,912
Total $ 8,923 $ 9,500 2.72% $ 9,185 $ 9,929
Foreign government
Due within 1 year $ 292 $ 291 7.86% $ 361 $ 360
After 1 but within 5 years 1,359 1,328 6.30 1,570 1,662
After 5 but within 10 years — — — — —
After 10 years — — — — —
Total $ 1,651 $ 1,619 6.58% $ 1,931 $ 2,022
All other(3)
Due within 1 year $ — $ — —% $ — $ —
After 1 but within 5 years — — — — —
After 5 but within 10 years 11,520 11,515 2.78 11,795 15,020
After 10 years 17,359 17,340 1.34 9,786 6,475
Total $ 28,879 $ 28,855 1.92% $ 21,581 $ 21,495
Total debt securities HTM $216,963 $216,038 1.65% $104,943 $107,790

(1) Amortized cost is reported net of ACL of $87 million and $86 million at December 31, 2021 and December 30, 2020, respectively.
(2) Weighted average yields are weighted based on the amortized cost of each security. The average yield considers the contractual coupon, amortization of premiums and accretion of discounts and excludes the effects of
any related hedging derivatives.
(3) Includes corporate and asset-backed securities.

HTM Debt Securities Delinquency and Non-Accrual

Details
Citi did not have any HTM debt securities that were delinquent or on
non-accrual status at December 31, 2021 and 2020.
There were no purchased credit-deteriorated HTM debt securities held by
the Company as of December 31, 2021 and 2020.

194
Evaluating Investments for Impairment State and Municipal Securities
The process for estimating credit losses in Citigroup’s AFS state and
AFS Debt Securities
municipal bonds is primarily based on a credit analysis that incorporates
Overview—AFS Debt Securities third-party credit ratings. Citi monitors the bond issuers and any insurers
The Company conducts periodic reviews of all AFS debt securities with providing default protection in the form of financial guarantee insurance.
unrealized losses to evaluate whether the impairment resulted from expected The average external credit rating, disregarding any insurance, is Aa2/AA.
credit losses or from other factors and to evaluate the Company’s intent to sell In the event of an external rating downgrade or other indicator of credit
such securities. impairment (i.e., based on instrument-specific estimates of cash flows or
An AFS debt security is impaired when the current fair value of an probability of issuer default), the subject bond is specifically reviewed for
individual AFS debt security is less than its amortized cost basis. adverse changes in the amount or timing of expected contractual principal
The Company recognizes the entire difference between amortized cost and interest payments.
basis and fair value in earnings for impaired AFS debt securities that Citi For AFS state and municipal bonds with unrealized losses that Citi plans
has an intent to sell or for which Citi believes it will more-likely-than-not to sell or would more-likely-than-not be required to sell, the full impairment
be required to sell prior to recovery of the amortized cost basis. However, for is recognized in earnings. For AFS state and municipal bonds where Citi has
those AFS debt securities that the Company does not intend to sell and is not no intent to sell and it is more-likely-than-not that the Company will not be
likely to be required to sell, only the credit-related impairment is recognized required to sell, Citi records an allowance for expected credit losses for the
in earnings by recording an allowance for credit losses. Any remaining fair amount it expects not to collect, capped at the difference between the bond’s
value decline for such securities is recorded in AOCI. The Company does amortized cost basis and fair value.
not consider the length of time that the fair value of a security is below its
amortized cost when determining if a credit loss exists. Equity Method Investments
For AFS debt securities, credit losses exist where Citi does not expect to Management assesses equity method investments that have fair values
receive contractual principal and interest cash flows sufficient to recover that are less than their respective carrying values for other-than-temporary
the entire amortized cost basis of a security. The allowance for credit losses impairment (OTTI). Fair value is measured as price multiplied by
is limited to the amount by which the AFS debt security’s amortized cost quantity if the investee has publicly listed securities. If the investee is not
basis exceeds its fair value. The allowance is increased or decreased if credit publicly listed, other methods are used (see Note 24 to the Consolidated
conditions subsequently worsen or improve. Reversals of credit losses are Financial Statements).
recognized in earnings. For impaired equity method investments that Citi plans to sell prior to
The Company’s review for impairment of AFS debt securities recovery of value or would more-likely-than-not be required to sell, with no
generally entails: expectation that the fair value will recover prior to the expected sale date,
the full impairment is recognized as OTTI in Other revenue regardless of
• identification and evaluation of impaired investments; severity and duration. The measurement of the OTTI does not include partial
• consideration of evidential matter, including an evaluation of factors or projected recoveries subsequent to the balance sheet date.
triggers that could cause individual positions to qualify as credit impaired For impaired equity method investments that management does not
and those that would not support credit impairment; and plan to sell and is not more-likely-than-not to be required to sell prior to
• documentation of the results of these analyses, as required under recovery of value, the evaluation of whether an impairment is other-than-
business policies. temporary is based on (i) whether and when an equity method investment
will recover in value and (ii) whether the investor has the intent and ability
The sections below describe the Company’s process for identifying expected to hold that investment for a period of time sufficient to recover the value.
credit impairments for debt security types that have the most significant The determination of whether the impairment is considered other-than-
unrealized losses as of December 31, 2021. temporary considers the following indicators:
Mortgage-Backed Securities
• the cause of the impairment and the financial condition and near-term
Citi records no allowances for credit losses on U.S. government-agency-
prospects of the issuer, including any specific events that may influence
guaranteed mortgage-backed securities, because the Company expects to
the operations of the issuer;
incur no credit losses in the event of default due to a history of incurring no
credit losses and due to the nature of the counterparties. • the intent and ability to hold the investment for a period of time sufficient
to allow for any anticipated recovery in market value; and
• the length of time and extent to which fair value has been less than the
carrying value.

195
Recognition and Measurement of Impairment
The following tables present total impairment on Investments recognized in earnings:

Year ended December 31, 2021

In millions of dollars AFS Other assets Total
Impairment losses related to debt securities that the Company does not intend to sell nor
will likely be required to sell:
Total impairment losses recognized during the period $ —  $— $ — 
Less: portion of impairment loss recognized in AOCI (before taxes) —  — — 
Net impairment losses recognized in earnings for debt securities that the Company does not intend
to sell nor will likely be required to sell $ —  $— $ — 
Impairment losses recognized in earnings for debt securities that the Company intends to sell,
would more-likely-than-not be required to sell or will be subject to an issuer call deemed probable of exercise 181 — 181
Total impairment losses recognized in earnings $181 $— $181

Year ended December 31, 2020

In millions of dollars AFS HTM Other assets Total
Impairment losses related to debt securities that the Company does not intend to sell nor
will likely be required to sell:
Total impairment losses recognized during the period $ —  $— $—  $ — 
Less: portion of impairment loss recognized in AOCI (before taxes) —  — —  — 
Net impairment losses recognized in earnings for debt securities that the Company does not intend
to sell nor will likely be required to sell $ —  $— $—  $ — 
Impairment losses recognized in earnings for debt securities that the Company intends to sell,
would more-likely-than-not be required to sell or will be subject to an issuer call deemed probable of exercise 109 — —  109
Total impairment losses recognized in earnings $109 $— $—  $109

Year ended December 31, 2019

In millions of dollars AFS HTM Other assets Total
Impairment losses related to debt securities that the Company does not intend to sell nor will
likely be required to sell:
Total impairment losses recognized during the period $ 1  $— $ 1  $ 2 
Less: portion of impairment loss recognized in AOCI (before taxes) —  — —  — 
Net impairment losses recognized in earnings for debt securities that the Company does not intend
to sell nor will likely be required to sell $ 1  $— $ 1  $ 2 
Impairment losses recognized in earnings for debt securities that the Company intends to sell,
would more-likely-than-not be required to sell or will be subject to an issuer call deemed probable of exercise 20  — 1  21 
Total impairment losses recognized in earnings $21  $— $ 2  $23 

196
The following presents the credit-related impairments recognized in earnings for AFS securities held that the Company does not intend to sell nor will likely be
required to sell at December 31, 2021 and 2020:

Allowance for Credit Losses on AFS Debt Securities

Year ended December 31, 2021

U.S. Treasury
Mortgage- and federal State and Foreign Total
In millions of dollars backed agency municipal government Corporate AFS
Allowance for credit losses at beginning of year $— $— $— $— $ 5 $ 5
Gross write-offs — — — — — —
Gross recoveries — — — — — —
Net credit losses (NCLs) $— $— $— $— $— $—
NCLs $— $— $— $— $— $—
Credit losses on securities without previous credit losses — — — — 3 3
Net reserve builds (releases) on securities with previous credit losses — — — — — —
Total provision for credit losses $— $— $— $— $ 3 $ 3
Initial allowance on newly purchased credit-deteriorated securities
during the year — — — — — —
Allowance for credit losses at end of year $— $— $— $— $ 8 $ 8

Year ended December 31, 2020

U.S. Treasury
Mortgage- and federal State and Foreign Total
In millions of dollars backed agency municipal government Corporate AFS
Allowance for credit losses at beginning of year $— $— $— $— $— $—
Gross write-offs — — — — — —
Gross recoveries — — — — 2 2
Net credit losses (NCLs) $— $— $— $— $ 2 $ 2
NCLs $— $— $— $— $ (2) $ (2)
Credit losses on securities without previous credit losses — — — 3 5 8
Net reserve builds (releases) on securities with previous credit losses — — — (3) — (3)
Total provision for credit losses $— $— $— $— $ 3 $ 3
Initial allowance on newly purchased credit-deteriorated securities
during the year — — — — — —
Allowance for credit losses at end of year $— $— $— $— $ 5 $ 5

197
Non-Marketable Equity Securities Not Carried at When the qualitative assessment indicates that impairment exists, the
Fair Value investment is written down to fair value, with the full difference between the
Non-marketable equity securities are required to be measured at fair fair value of the investment and its carrying amount recognized in earnings.
value with changes in fair value recognized in earnings unless (i) the Below is the carrying value of non-marketable equity securities measured
measurement alternative is elected or (ii) the investment represents Federal using the measurement alternative at December 31, 2021 and 2020:
Reserve Bank and Federal Home Loan Bank stock or certain exchange seats
that continue to be carried at cost. December 31, December 31,
The election to measure a non-marketable equity security using the In millions of dollars 2021 2020
measurement alternative is made on an instrument-by-instrument basis. Measurement alternative:
Under the measurement alternative, an equity security is carried at cost plus Carrying value $1,413 $962
or minus changes resulting from observable prices in orderly transactions
for the identical or a similar investment of the same issuer. The carrying Below are amounts recognized in earnings and life-to-date
value of the equity security is adjusted to fair value on the date of an observed amounts for non-marketable equity securities measured using the
transaction. Fair value may differ from the observed transaction price due to measurement alternative:
a number of factors, including marketability adjustments and differences in
rights and obligations when the observed transaction is not for the identical Years ended
investment held by Citi. December 31,
Equity securities under the measurement alternative are also assessed In millions of dollars 2021 2020
for impairment. On a quarterly basis, management qualitatively assesses Measurement alternative(1):
whether each equity security under the measurement alternative is impaired. Impairment losses $ 25 $ 56
Downward changes for observable prices — 19
Impairment indicators that are considered include, but are not limited to,
Upward changes for observable prices 406 144
the following:
(1) See Note 24 to the Consolidated Financial Statements for additional information on these nonrecurring
• a significant deterioration in the earnings performance, credit rating, fair value measurements.
asset quality or business prospects of the investee;
• a significant adverse change in the regulatory, economic or technological Life-to-date amounts
on securities still held
environment of the investee;
In millions of dollars December 31, 2021
• a significant adverse change in the general market condition of either the
Measurement alternative:
geographical area or the industry in which the investee operates; Impairment losses $ 87
• a bona fide offer to purchase, an offer by the investee to sell or a Downward changes for observable prices 3
completed auction process for the same or similar investment for an Upward changes for observable prices 699
amount less than the carrying amount of that investment; and
• factors that raise significant concerns about the investee’s ability to A similar impairment analysis is performed for non-marketable equity
continue as a going concern, such as negative cash flows from operations, securities carried at cost. For the years ended December 31, 2021 and 2020,
working capital deficiencies or noncompliance with statutory capital there was no impairment loss recognized in earnings for non-marketable
requirements or debt covenants. equity securities carried at cost.

198
Investments in Alternative Investment Funds That purposes of the Volcker Rule, which prohibits certain proprietary investment
Calculate Net Asset Value activities and limits the ownership of, and relationships with, covered funds.
The Company holds investments in certain alternative investment funds On April 21, 2017, Citi’s request for extension of the permitted holding period
that calculate net asset value (NAV), or its equivalent, including private under the Volcker Rule for certain of its investments in illiquid funds was
equity funds, funds of funds and real estate funds, as provided by third- approved, allowing the Company to hold such investments until the earlier of
party asset managers. Investments in such funds are generally classified five years from the July 21, 2017 expiration date of the general conformance
as non-marketable equity securities carried at fair value. The fair values of period or the date such investments mature or are otherwise conformed with
these investments are estimated using the NAV of the Company’s ownership the Volcker Rule.
interest in the funds. Some of these investments are in “covered funds” for

Redemption frequency
(if currently eligible)
Fair value Unfunded commitments monthly, quarterly, annually Redemption notice period
December 31, December 31, December 31, December 31,
In millions of dollars 2021 2020 2021 2020
Private equity funds(1)(2) $123 $123 $60 $62 — —
Real estate funds(2)(3) 2 9 1 20 — —
Mutual/collective investment funds 20 20 — —
Total $145 $152 $61 $82 — —

(1) Private equity funds include funds that invest in infrastructure, emerging markets and venture capital.
(2) With respect to the Company’s investments in private equity funds and real estate funds, distributions from each fund will be received as the underlying assets held by these funds are liquidated. It is estimated that the
underlying assets of these funds will be liquidated over a period of several years as market conditions allow. Private equity and real estate funds do not allow redemption of investments by their investors. Investors are
permitted to sell or transfer their investments, subject to the approval of the general partner or investment manager of these funds, which generally may not be unreasonably withheld.
(3) Includes several real estate funds that invest primarily in commercial real estate in the U.S., Europe and Asia.

199
14. LOANS The policy for re-aging modified U.S. consumer loans to current status
varies by product. Generally, one of the conditions to qualify for these
Citigroup loans are reported in two categories: consumer and corporate.
modifications is that a minimum number of payments (typically ranging
These categories are classified primarily according to the operating segment
from one to three) be made. Upon modification, the loan is re-aged to
and business that manage the loans.
current status. However, re-aging practices for certain open-ended consumer
Consumer Loans loans, such as credit cards, are governed by Federal Financial Institutions
Consumer loans represent loans and leases managed primarily by GCB and Examination Council (FFIEC) guidelines. For open-ended consumer loans
Corporate/Other. subject to FFIEC guidelines, one of the conditions for a loan to be re-aged to
Citigroup has established a risk management process to monitor, evaluate current status is that at least three consecutive minimum monthly payments,
and manage the principal risks associated with its consumer loan portfolio. or the equivalent amount, must be received. In addition, under FFIEC
Credit quality indicators that are actively monitored include delinquency guidelines, the number of times that such a loan can be re-aged is subject to
status, consumer credit scores under Fair Isaac Corporation (FICO) and loan limitations (generally once in 12 months and twice in five years).
to value (LTV) ratios, each as discussed in more detail below. Furthermore, FHA and Department of Veterans Affairs (VA) loans are
modified under those respective agencies’ guidelines and payments are not
Delinquency Status always required in order to re-age a modified loan to current.
Delinquency status is monitored and considered a key indicator of credit
quality of consumer loans. Principally, the U.S. residential first mortgage
loans use the Mortgage Bankers Association (MBA) method of reporting
delinquencies, which considers a loan delinquent if a monthly payment has
not been received by the end of the day immediately preceding the loan’s
next due date. All other loans use a method of reporting delinquencies that
considers a loan delinquent if a monthly payment has not been received by
the close of business on the loan’s next due date.
As a general policy, residential first mortgages, home equity loans and
installment loans are classified as non-accrual when loan payments are
90 days contractually past due. Credit cards and unsecured revolving loans
generally accrue interest until payments are 180 days past due. Home equity
loans in regulated bank entities are classified as non-accrual if the related
residential first mortgage is 90 days or more past due. Mortgage loans, other
than Federal Housing Administration (FHA)-insured loans, are classified
as non-accrual within 60 days of notification that the borrower has filed
for bankruptcy.

200
The following tables provide Citi’s consumer loans by type:

Consumer Loans, Delinquencies and Non-Accrual Status at December 31, 2021

Non-accrual Non-accrual
Past due loans for loans for
Total 30–89 days ≥ 90 days government Total which there which there Total 90 days past due
In millions of dollars current(1)(2) past due(3)(4) past due(3)(4) guaranteed(5) loans is no ACLL is an ACLL non-accrual and accruing
In North America offices(6)
Residential first mortgages(7) $ 42,894 $ 245 $ 280 $394 $ 43,813 $134 $ 339 $ 473 $ 282
Home equity loans(8)(9) 4,899 43 159 — 5,101 63 206 269 —
Credit cards 132,050 947 871 — 133,868 — — — 871
Personal, small business
and other 3,091 19 10 38 3,158 2 15 17 28
Total $182,934 $ 1,254 $ 1,320 $432 $185,940 $199 $ 560 $ 759 $ 1,181

In offices outside North

America(6)              
Residential mortgages(7) $ 34,289 $ 159 $ 153 $ — $ 34,601 $ — $ 403 $ 403 $ —
Credit cards 17,428 192 188 — 17,808 — 140 140 120
Personal, small business
and other 32,662 144 81 — 32,887 — 200 200 22
Total $ 84,379 $ 495 $ 422 $ — $ 85,296 $ — $ 743 $ 743 $ 142
Total Citigroup(10) $267,313 $ 1,749 $ 1,742 $432 $271,236 $199 $1,303 $ 1,502 $ 1,323

Consumer Loans, Delinquencies and Non-Accrual Status at December 31, 2020

Non-accrual Non-accrual
Past due loans for loans for
Total 30–89 days ≥ 90 days government Total which there which there Total 90 days past due
In millions of dollars current(1)(2) past due(3)(4) past due(3)(4) guaranteed(5) loans is no ACLL is an ACLL non-accrual and accruing
In North America offices(6)
Residential first mortgages(7) $ 46,471 $ 402 $ 381 $524 $ 47,778 $136 $ 509 $ 645 $ 332
Home equity loans(8)(9) 6,829 78 221 — 7,128 72 307 379 —
Credit cards 127,827 1,228 1,330 — 130,385 — — — 1,330
Personal, small business
and other 4,472 27 10 — 4,509 2 33 35 —
Total $185,599 $ 1,735 $ 1,942 $524 $189,800 $210 $ 849 $ 1,059 $ 1,662

In offices outside North

America(6)
Residential mortgages(7) $ 39,557 $ 213 $ 199 $ — $ 39,969 $ — $ 486 $ 486 $ —
Credit cards 21,718 429 545 — 22,692 — 384 384 324
Personal, small business
and other 35,925 319 134 — 36,378 — 212 212 52
Total $ 97,200 $ 961 $ 878 $ — $ 99,039 $ — $1,082 $ 1,082 $ 376
Total Citigroup(10) $282,799 $ 2,696 $ 2,820 $524 $288,839 $210 $1,931 $ 2,141 $ 2,038

(1) Loans less than 30 days past due are presented as current.
(2) Includes $12 million and $14 million at December 31, 2021 and 2020, respectively, of residential first mortgages recorded at fair value.
(3) Excludes loans guaranteed by U.S. government-sponsored agencies.
(4) Loans modified under Citi’s consumer relief programs continue to be reported in the same delinquency bucket they were in at the time of modification. Most modified loans in North America would not be reported
as 30–89 or 90+ days past due for the duration of the programs (which have various durations, and certain of which may be renewed by the customer). Consumer relief programs in Asia and Mexico largely expired
during the fourth quarter of 2020 and began to age at that time.
(5) Consists of loans that are guaranteed by U.S. government-sponsored agencies that are 30–89 days past due of $0.1 billion and $0.2 billion and 90 days or more past due of $0.3 billion and $0.3 billion at
December 31, 2021 and 2020, respectively.
(6) North America includes the U.S., Canada and Puerto Rico. Mexico is included in offices outside North America.
(7) Includes approximately $0.1 billion and $0.1 billion at December 31, 2021 and 2020, respectively, of residential first mortgage loans in process of foreclosure.
(8) Includes approximately $0.1 billion and $0.1 billion at December 31, 2021 and 2020, respectively, of home equity loans in process of foreclosure.
(9) Fixed-rate home equity loans and loans extended under home equity lines of credit, which are typically in junior lien positions.
(10) Consumer loans are net of unearned income of $659 million and $749 million at December 31, 2021 and 2020, respectively. Unearned income on consumer loans primarily represents unamortized origination fees
and costs, premiums and discounts.

201
Interest Income Recognized for Non-Accrual Consumer Loans

For the years ended

In millions of dollars December 31, 2021 December 31, 2020
In North America offices(1)
Residential first mortgages $ 13 $ 15
Home equity loans 7 8
Credit cards — —
Personal, small business and other — —
Total $ 20 $ 23

In offices outside North America(1)

Residential mortgages $ 1 $—
Credit cards — —
Personal, small business and other — —
Total $ 1 $—
Total Citigroup $ 21 $ 23

(1) North America includes the U.S., Canada and Puerto Rico. Mexico is included in offices outside North America.

During the years ended December 31, 2021 and 2020, the Company sold
and/or reclassified to HFS $1,473 million and $414 million of consumer
loans, respectively. Loans of businesses that are HFS are not included in
the above. For additional information, see Note 2 to the Consolidated
Financial Statements.

202
This page intentionally left blank.

203
Consumer Credit Scores (FICO) The following tables provide details on the FICO scores for Citi’s
In the U.S., independent credit agencies rate an individual’s risk for U.S. consumer loan portfolio based on end-of-period receivables by year of
assuming debt based on the individual’s credit history and assign every origination. FICO scores are updated monthly for substantially all of the
consumer a Fair Isaac Corporation (FICO) credit score. These scores are portfolio or, otherwise, on a quarterly basis for the remaining portfolio.
continually updated by the agencies based upon an individual’s credit
actions (e.g., taking out a loan or missed or late payments).

FICO score distribution in U.S. portfolio(1)(2) December 31, 2021

Less than 680 Greater FICO not
In millions of dollars 680 to 760 than 760 available Total loans
Residential first mortgages
2021 $ 201 $ 3,415 $ 7,363
2020 200 2,732 7,339
2019 140 1,178 3,082
2018 196 431 747
2017 240 625 1,143
Prior 1,507 3,817 7,903
Total residential first mortgages $ 2,484 $ 12,198 $ 27,577 $1,554 $ 43,813

Home equity loans (pre-reset) $ 222 $ 836 $ 1,309

Home equity loans (post-reset) 609 989 1,095
Total home equity loans $ 831 $ 1,825 $ 2,404 $ 41 $ 5,101
Credit cards (3)
$ 23,115 $ 52,907 $ 55,137 $2,192 $133,351

Personal, small business and other

2021 $ 59 $ 201 $ 319
2020 22 41 64
2019 42 53 68
2018 34 35 37
2017 7 8 9
Prior 120 179 143
Total personal, small business and other $ 284 $ 517 $ 640 $1,717 $ 3,158
Total $ 26,714 $ 67,447 $ 85,758 $5,504 $185,423

See footnotes on next page.

204
 FICO score distribution in U.S. portfolio(1)(2) December 31, 2020
Less than 680 Greater FICO not Total
In millions of dollars 680 to 760 than 760 available loans
Residential first mortgages
2020 $ 187 $ 3,741 $ 9,052
2019 150 1,857 5,384
2018 246 655 1,227
2017 298 846 1,829
2016 323 1,368 3,799
Prior 1,708 4,133 9,105
Total residential first mortgages $ 2,912 $ 12,600 $ 30,396 $1,870 $ 47,778

Home equity loans (pre-reset) $ 292 $ 1,014 $ 1,657

Home equity loans (post-reset) 1,055 1,569 1,524
Total home equity loans $ 1,347 $ 2,583 $ 3,181 $ 17 $ 7,128
Credit cards(3) $ 26,227 $ 52,778 $ 49,767 $1,041 $129,813

Personal, small business and other

2020 $ 23 $ 58 $ 95
2019 79 106 134
2018 82 80 84
2017 26 27 30
2016 10 9 8
Prior 214 393 529
Total personal, small business and other $ 434 $ 673 $ 880 $2,522 $ 4,509
Total $ 30,920 $ 68,634 $ 84,224 $5,450 $189,228

(1) The FICO bands in the tables are consistent with general industry peer presentations.
(2) FICO scores are updated on either a monthly or quarterly basis. For updates that are made only quarterly, certain current-period loans by year of origination are greater than those disclosed in the prior periods. Loans
that did not have FICO scores as of the prior period have been updated with FICO scores as they become available.
(3) Excludes $517 million and $572 million of balances related to Canada for December 31, 2021 and December 31, 2020, respectively.

205
Loan to Value (LTV) Ratios updated monthly using the most recent Core Logic Home Price Index data
LTV ratios (loan balance divided by appraised value) are calculated at available for substantially all of the portfolio applied at the Metropolitan
origination and updated by applying market price data. Statistical Area level, if available, or the state level if not. The remainder
The following tables provide details on the LTV ratios for Citi’s of the portfolio is updated in a similar manner using the Federal Housing
U.S. consumer mortgage portfolios by year of origination. LTV ratios are Finance Agency indices.

LTV distribution in U.S. portfolio December 31, 2021

Less
than > 80% but less Greater
or equal than or equal than LTV not
In millions of dollars to 80% to 100% 100% available Total
Residential first mortgages
2021 $ 10,515 $ 474 $ 1
2020 10,206 75 —
2019 4,372 35 1
2018 1,300 74 5
2017 1,986 27 2
Prior 13,271 34 8
Total residential first mortgages $ 41,650 $ 719 $ 17 $1,427 $ 43,813

Home equity loans (pre-reset) $ 2,315 $ 26 $ 9

Home equity loans (post-reset) 2,608 48 25
Total home equity loans $ 4,923 $ 74 $ 34 $ 70 $ 5,101
Total $ 46,573 $ 793 $ 51 $1,497 $ 48,914

LTV distribution in U.S. portfolio December 31, 2020

Less than > 80% but less Greater
or equal than or equal than LTV not
In millions of dollars to 80% to 100% 100% available Total
Residential first mortgages
2020 $ 11,447 $1,543 $ —
2019 7,029 376 2
2018 1,617 507 11
2017 2,711 269 4
2016 5,423 84 2
Prior 14,966 66 16
Total residential first mortgages $ 43,193 $2,845 $ 35 $1,705 $ 47,778

Home equity loans (pre-reset) $ 2,876 $ 50 $ 16

Home equity loans (post-reset) 3,782 290 58
Total home equity loans $ 6,658 $ 340 $ 74 $ 56 $ 7,128
Total $ 49,851 $3,185 $109 $1,761 $ 54,906

206
Impaired Consumer Loans concession to the borrower. These modifications may include interest rate
A loan is considered impaired when Citi believes it is probable that all reductions and/or principal forgiveness. Impaired consumer loans exclude
amounts due according to the original contractual terms of the loan will not smaller-balance homogeneous loans that have not been modified and are
be collected. Impaired consumer loans include non-accrual loans, as well carried on a non-accrual basis.
as smaller-balance homogeneous loans whose terms have been modified The following tables present information about impaired consumer loans
due to the borrower’s financial difficulties and where Citi has granted a and interest income recognized on impaired consumer loans:

At and for the year ended December 31, 2021

Related
Recorded Unpaid specific Average Interest income
In millions of dollars investment(1)(2) principal balance allowance(3)(4) carrying value(5) recognized(6)
Mortgage and real estate
Residential first mortgages $1,457 $1,531 $ 87 $1,548 $ 87
Home equity loans 188 342 (1) 335 9
Credit cards 1,582 1,609 594 1,795 116
Personal, small business and other 454 461 120 505 52
Total $3,681 $3,943 $800 $4,183 $264

At and for the year ended December 31, 2020

Related
Recorded Unpaid specific Average Interest income
In millions of dollars investment(1)(2) principal balance allowance(3) carrying value(5) recognized(6)
Mortgage and real estate
Residential first mortgages $1,787 $1,962 $ 157 $1,661 $ 68
Home equity loans 478 651 60 527 13
Credit cards 1,982 2,135 918 1,926 106
Personal, small business and other 552 552 210 463 63
Total $4,799 $5,300 $1,345 $4,577 $250

(1) Recorded investment in a loan includes net deferred loan fees and costs, unamortized premium or discount and direct write-downs and includes accrued interest only on credit card loans.
(2) For December 31, 2021, $190 million of residential first mortgages and $94 million of home equity loans do not have a specific allowance. For December 31, 2020, $211 million of residential first mortgages and
$147 million of home equity loans do not have a specific allowance.
(3) Included in the Allowance for credit losses on loans.
(4) The negative allowance on home equity loans resulted from expected recoveries on previously written-off accounts.
(5) Average carrying value represents the average recorded investment ending balance for the last four quarters and does not include the related specific allowance.
(6) Includes amounts recognized on both an accrual and cash basis.

207
Consumer Troubled Debt Restructurings(1)

For the year ended December 31, 2021(1)

Contingent Average
In millions of dollars, except Number of Post-modification Deferred principal Principal interest rate
number of loans modified loans modified recorded investment(2)(3) principal(4) forgiveness(5) forgiveness(6) reduction
North America
Residential first mortgages 1,333 $ 227 $— $— $— 1%
Home equity loans 187 12 — — — 1
Credit cards 165,098 794 — — — 18
Personal, small business and other 1,000 13 — — — 3
Total(7) 167,618 $1,046 $— $— $—
International
Residential mortgages 1,975 $ 86 $— $— $— —%
Credit cards 74,202 339 — — 13 13
Personal, small business and other 28,206 201 — — 7 10
Total(7) 104,383 $ 626 $— $— $ 20

For the year ended December 31, 2020(1)

Contingent Average
In millions of dollars, except Number of Post-modification Deferred principal Principal interest rate
number of loans modified loans modified recorded investment(2)(8) principal(4) forgiveness(5) forgiveness(6) reduction
North America
Residential first mortgages 1,225 $ 209 $— $— $— —%
Home equity loans 296 27 — — — 1
Credit cards 215,466 1,038 — — — 17
Personal, small business and other 2,452 28 — — — 5
Total(7) 219,439 $1,302 $— $— $—
International
Residential mortgages 2,542 $ 141 $ 3 $— $— 2%
Credit cards 90,694 401 — — 12 15
Personal, small business and other 41,079 301 — — 8 10
Total(7) 134,315 $ 843 $ 3 $— $ 20

(1) The above tables do not include loan modifications that meet the TDR relief criteria in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) or the interagency guidance.
(2) Post-modification balances include past-due amounts that are capitalized at the modification date.
(3) Post-modification balances in North America include $15 million of residential first mortgages to borrowers who have gone through Chapter 7 bankruptcy in the year ended December 31, 2021. These amounts include
$5 million of residential first mortgages that were newly classified as TDRs during 2021, based on previously received OCC guidance.
(4) Represents the portion of contractual loan principal that is non-interest bearing, but still due from the borrower. Such deferred principal is charged off at the time of permanent modification to the extent that the related
loan balance exceeds the underlying collateral value.
(5) Represents the portion of contractual loan principal that is non-interest bearing and, depending upon borrower performance, eligible for forgiveness.
(6) Represents the portion of contractual loan principal that was forgiven at the time of permanent modification.
(7) The above tables reflect activity for restructured loans that were considered TDRs during the year.
(8) Post-modification balances in North America include $13 million of residential first mortgages to borrowers who have gone through Chapter 7 bankruptcy in the year ended December 31, 2020. These amounts include
$9 million of residential first mortgages that were newly classified as TDRs during 2020, based on previously received OCC guidance.

208
 The following table presents consumer TDRs that defaulted for which the payment default occurred within one year of a permanent modification. Default is
defined as 60 days past due.

Years ended December 31,

In millions of dollars 2021 2020
North America
Residential first mortgages $ 57 $ 71
Home equity loans 8 14
Credit cards 252 317
Personal, small business and other 4 4
Total $ 321 $406

International
Residential mortgages $ 38 $ 26
Credit cards 152 178
Personal, small business and other 96 78
Total $ 286 $282

Purchased Credit-Deteriorated Assets

Years ended December 31,

2021 2020
Credit Installment Credit Installment
In millions of dollars cards Mortgages (1) and other cards Mortgages (1) and other
Purchase price $— $23 $— $ 4 $49 $—
Allowance for credit losses at
acquisition date — — — 4 — —
Discount or premium attributable to
non-credit factors — — — — — —
Par value (amortized cost basis) $— $23 $— $ 8 $49 $—

(1) Includes loans sold to agencies that were bought back at par due to repurchase agreements.

209
Corporate Loans Lease financing
Corporate loans represent loans and leases managed by ICG. The following Citi is a lessor in the power, railcars, shipping and aircraft sectors, where
table presents information by corporate loan type: the Company has executed operating, direct financing and leveraged leases.
Citi’s $0.5 billion of lease financing receivables, as of December 31, 2021,
December 31, December 31, is composed of approximately equal balances of direct financing lease
In millions of dollars 2021 2020 receivables and net investments in leveraged leases. Citi uses the interest rate
In North America offices(1) implicit in the lease to determine the present value of its lease financing
Commercial and industrial $ 51,999 $ 57,731 receivables. Interest income on direct financing and leveraged leases during
Financial institutions 66,936 55,809 the year ended December 31, 2021 was not material.
Mortgage and real estate(2) 63,357 60,675
Installment and other 29,143 26,744
The Company’s leases have an average remaining maturity of
Lease financing 413 673 approximately three and a half years. In certain cases, Citi obtains residual
value insurance from third parties and/or the lessee to manage the risk
Total $211,848 $201,632
associated with the residual value of the leased assets. The receivable related
In offices outside North America (1)
to the residual value of the leased assets is $0.2 billion as of December 31,
Commercial and industrial $103,167 $104,072
Financial institutions 32,203 32,334
2021, while the amount covered by residual value guarantees is nil.
Mortgage and real estate(2) 10,412 11,371 The Company’s operating leases, where Citi is a lessor, are not significant
Installment and other 34,436 33,759 to the Consolidated Financial Statements.
Lease financing 42 65
Governments and official institutions 4,423 3,811 Delinquency Status
Total $184,683 $185,412 Citi generally does not manage corporate loans on a delinquency basis.
Corporate loans are identified as impaired and placed on a cash (non-
Corporate loans, net of unearned income(3) $396,531 $387,044
accrual) basis when it is determined, based on actual experience and a
(1) North America includes the U.S., Canada and Puerto Rico. Mexico is included in offices outside North forward-looking assessment of the collectability of the loan in full, that the
America. The classification between offices in North America and outside North America is based
on the domicile of the booking unit. The difference between the domicile of the booking unit and the payment of interest or principal is doubtful or when interest or principal
domicile of the managing unit is not material. is 90 days past due, except when the loan is well collateralized and in the
(2) Loans secured primarily by real estate.
(3) Corporate loans are net of unearned income of ($799) million and ($844) million at December 31, process of collection. Any interest accrued on impaired corporate loans
2021 and 2020, respectively. Unearned income on corporate loans primarily represents interest
received in advance, but not yet earned, on loans originated on a discounted basis. and leases is reversed at 90 days and charged against current earnings,
and interest is thereafter included in earnings only to the extent actually
The Company sold and/or reclassified to held-for-sale $5.9 billion and received in cash. When there is doubt regarding the ultimate collectability
$2.2 billion of corporate loans during the years ended December 31, 2021 of principal, all cash receipts are thereafter applied to reduce the recorded
and 2020, respectively. The Company did not have significant purchases investment in the loan. While corporate loans are generally managed based
of corporate loans classified as held-for-investment for the years ended on their internally assigned risk rating (see further discussion below), the
December 31, 2021 or 2020. following tables present delinquency information by corporate loan type.

210
Corporate Loan Delinquencies and Non-Accrual Details at December 31, 2021

30–89 days ≥ 90 days
past due and past due and Total past due Total Total Total
In millions of dollars accruing(1) accruing(1) and accruing non-accrual(2) current(3) loans(4)
Commercial and industrial $1,100 $249 $1,349 $1,264 $148,459 $151,072
Financial institutions 505 233 738 33 98,172 98,943
Mortgage and real estate 283 1 284 419 73,066 73,769
Lease financing — — — 14 441 455
Other 128 26 154 147 65,921 66,222
Loans at fair value 6,070
Total $2,016 $509 $2,525 $1,877 $386,059 $396,531

Corporate Loan Delinquencies and Non-Accrual Details at December 31, 2020

30–89 days ≥ 90 days
past due and past due and Total past due Total Total Total
In millions of dollars accruing(1) accruing(1) and accruing non-accrual(2) current(3) loans(4)
Commercial and industrial $ 400 $109 $ 509 $2,795 $153,036 $156,340
Financial institutions 668 65 733 92 86,864 87,689
Mortgage and real estate 450 247 697 505 70,836 72,038
Lease financing 62 12 74 24 640 738
Other 112 19 131 111 63,157 63,399
Loans at fair value 6,840
Total $1,692 $452 $2,144 $3,527 $374,533 $387,044

(1) Corporate loans that are 90 days past due are generally classified as non-accrual. Corporate loans are considered past due when principal or interest is contractually due but unpaid.
(2) Non-accrual loans generally include those loans that are 90 days or more past due or those loans for which Citi believes, based on actual experience and a forward-looking assessment of the collectability of the loan in
full, that the payment of interest or principal is doubtful.
(3) Loans less than 30 days past due are presented as current.
(4) Total loans include loans at fair value, which are not included in the various delinquency columns.

Citigroup has a risk management process to monitor, evaluate and

manage the principal risks associated with its corporate loan portfolio. As
part of its risk management process, Citi assigns numeric risk ratings to its
corporate loan facilities based on quantitative and qualitative assessments
of the obligor and facility. These risk ratings are reviewed at least annually
or more often if material events related to the obligor or facility warrant.
Factors considered in assigning the risk ratings include financial condition
of the obligor, qualitative assessment of management and strategy, amount
and sources of repayment, amount and type of collateral and guarantee
arrangements, amount and type of any contingencies associated with the
obligor and the obligor’s industry and geography.
The obligor risk ratings are defined by ranges of default probabilities. The
facility risk ratings are defined by ranges of loss norms, which are the product
of the probability of default and the loss given default. The investment-grade
rating categories are similar to the category BBB-/Baa3 and above as defined
by S&P and Moody’s. Loans classified according to the bank regulatory
definitions as special mention, substandard, doubtful and loss will have risk
ratings within the non-investment-grade categories.

211
Corporate Loans Credit Quality Indicators

Recorded investment in loans(1)

Term loans by year of origination Revolving line
of credit December 31,
In millions of dollars 2021 2020 2019 2018 2017 Prior arrangements(2) 2021
Investment grade(3)
Commercial and industrial(4) $ 42,730 $ 5,744 $ 4,762 $ 3,825 $ 3,060 $ 8,928 $ 32,894 $101,943
Financial institutions(4) 14,096 1,985 1,290 1,118 599 2,536 67,184 88,808
Mortgage and real estate 4,423 6,013 5,421 3,630 1,801 3,561 1,341 26,190
Other(5) 11,928 3,993 1,392 2,974 524 6,321 32,807 59,939
Total investment grade $ 73,177 $ 17,735 $ 12,865 $ 11,547 $ 5,984 $ 21,346 $134,226 $276,880
Non-investment grade (3)

Accrual
Commercial and industrial(4) $ 16,814 $ 2,313 $ 2,466 $ 2,024 $ 1,412 $ 3,987 $ 18,849 $ 47,865
Financial institutions(4) 4,471 399 571 107 74 586 3,894 10,102
Mortgage and real estate 1,819 980 1,842 1,163 640 761 644 7,849
Other(5) 1,517 399 594 384 148 383 3,152 6,577
Non-accrual
Commercial and industrial(4) 54 119 64 104 94 117 712 1,264
Financial institutions — — — — — — 33 33
Mortgage and real estate 13 10 2 49 10 25 310 419
Other(5) 19 5 19 19 — 90 9 161
Total non-investment grade $ 24,707 $ 4,225 $ 5,558 $ 3,850 $ 2,378 $ 5,949 $ 27,603 $ 74,270
Non-rated private bank loans managed
on a delinquency basis(3)(6) $ 9,984 $ 8,901 $ 5,926 $ 2,895 $ 2,925 $ 8,680 $ — $ 39,311
Loans at fair value(7) 6,070
Corporate loans, net of unearned income $107,868 $ 30,861 $ 24,349 $ 18,292 $ 11,287 $ 35,975 $161,829 $396,531

212
 Recorded investment in loans(1)
Term loans by year of origination Revolving line
of credit December 31,
In millions of dollars 2020 2019 2018 2017 2016 Prior arrangements(2) 2020
Investment grade(3)
Commercial and industrial(4) $ 38,398 $ 7,607 $ 5,929 $ 3,909 $ 2,094 $ 8,670 $ 25,819 $ 92,426
Financial institutions(4) 10,560 2,964 2,106 782 681 2,030 56,239 75,362
Mortgage and real estate 6,793 6,714 5,174 2,568 1,212 1,719 1,557 25,737
Other(5) 10,874 3,566 4,597 952 780 5,290 31,696 57,755
Total investment grade $ 66,625 $ 20,851 $ 17,806 $ 8,211 $ 4,767 $ 17,709 $115,311 $251,280
Non-investment grade(3)  
Accrual  
Commercial and industrial(4) $ 19,683 $ 4,794 $ 4,645 $ 2,883 $ 1,182 $ 4,533 $ 23,400 $ 61,120
Financial institutions(4) 7,413 700 654 274 141 197 2,855 12,234
Mortgage and real estate 1,882 1,919 2,058 1,457 697 837 551 9,401
Other(5) 1,407 918 725 370 186 657 1,986 6,249
Non-accrual
Commercial and industrial(4) 260 203 192 143 57 223 1,717 2,795
Financial institutions 1 — — — — — 91 92
Mortgage and real estate 13 4 3 18 8 32 427 505
Other(5) 15 3 12 29 2 65 9 135
Total non-investment grade $ 30,674 $ 8,541 $ 8,289 $ 5,174 $ 2,273 $ 6,544 $ 31,036 $ 92,531
Non-rated private bank loans managed
on a delinquency basis(3)(6) $ 9,823 $ 7,121 $ 3,533 $ 3,674 $ 4,300 $ 7,942 $ — $ 36,393
Loans at fair value(7) 6,840
Corporate loans, net of unearned income $107,122 $ 36,513 $ 29,628 $ 17,059 $ 11,340 $ 32,195 $146,347 $387,044

(1) Recorded investment in a loan includes net deferred loan fees and costs, unamortized premium or discount, less any direct write-downs.
(2) There were no significant revolving line of credit arrangements that converted to term loans during the year.
(3) Held-for-investment loans are accounted for on an amortized cost basis.
(4) Includes certain short-term loans with less than one year in tenor.
(5) Other includes installment and other, lease financing and loans to government and official institutions.
(6) Non-rated private bank loans mainly include mortgage and real estate loans to private banking clients.
(7) Loans at fair value include loans to commercial and industrial, financial institutions, mortgage and real estate and other.

Impaired collateral-dependent loans and leases, where repayment is

expected to be provided solely by the sale of the underlying collateral with no
other available and reliable sources of repayment, are written down to the
lower of carrying value or collateral value, less cost to sell. Cash-basis loans
are returned to an accrual status when all contractual principal and interest
amounts are reasonably assured of repayment and there is a sustained period
of repayment performance, generally six months, in accordance with the
contractual terms of the loan.

213
Non-Accrual Corporate Loans
The following tables present non-accrual loan information by corporate loan type and interest income recognized on non-accrual corporate loans:

At and for the year ended December 31, 2021

Recorded Unpaid Related specific Average Interest income
In millions of dollars investment(1) principal balance allowance carrying value(2) recognized(3)
Non-accrual corporate loans
Commercial and industrial $1,264 $1,863 $198 $1,840 $ 37
Financial institutions 33 98 4 40 —
Mortgage and real estate 419 582 15 448 —
Lease financing 14 14 — 20 —
Other 147 241 8 142 18
Total non-accrual corporate loans $1,877 $2,798 $225 $2,490 $ 55

At and for the year ended December 31, 2020

Recorded Unpaid Related specific Average Interest income
In millions of dollars investment(1) principal balance allowance carrying value(2) recognized(3)
Non-accrual corporate loans
Commercial and industrial $ 2,795 $3,664 $442 $2,649 $ 14
Financial institutions 92 181 17 132 —
Mortgage and real estate 505 803 38 413 —
Lease financing 24 24 — 34 —
Other 111 235 18 174 21
Total non-accrual corporate loans $ 3,527 $4,907 $515 $3,402 $ 35

December 31, 2021 December 31, 2020

Recorded Related specific Recorded Related specific
In millions of dollars investment(1) allowance investment(1) allowance
Non-accrual corporate loans with specific allowances
Commercial and industrial $638 $198 $1,523 $442
Financial institutions 27 4 90 17
Mortgage and real estate 294 15 246 38
Lease financing — — — —
Other 37 8 68 18
Total non-accrual corporate loans with specific allowances $996 $225 $1,927 $515
Non-accrual corporate loans without specific allowances
Commercial and industrial $626 $1,272
Financial institutions 6 2
Mortgage and real estate 125 259
Lease financing 14 24
Other 110 43
Total non-accrual corporate loans without specific allowances $881 N/A $1,600 N/A

(1) Recorded investment in a loan includes net deferred loan fees and costs, unamortized premium or discount, less any direct write-downs.
(2) Average carrying value represents the average recorded investment balance and does not include related specific allowances.
(3) Interest income recognized for the year ended December 31, 2019 was $42 million.
N/A Not applicable

214
Corporate Troubled Debt Restructurings(1)
For the year ended December 31, 2021

TDRs
TDRs TDRs involving changes
Carrying involving changes involving changes in the amount
value of TDRs in the amount in the amount and/or timing of
modified during and/or timing of and/or timing of both principal and
In millions of dollars the year principal payments(2) interest payments(3) interest payments
Commercial and industrial $ 82 $— $— $82
Mortgage and real estate 8 — — 8
Other 10 1 9
Total $100 $ 1 $— $99

For the year ended December 31, 2020

TDRs
TDRs TDRs involving changes
Carrying involving changes involving changes in the amount
value of TDRs in the amount in the amount and/or timing of
modified during and/or timing of and/or timing of both principal and
In millions of dollars the year principal payments(2) interest payments(3) interest payments
Commercial and industrial $247 $— $— $247
Mortgage and real estate 19 — — 19
Other 19 6 — 13
Total $285 $ 6 $— $279

(1) The above tables do not include loan modifications that meet the TDR relief criteria in the CARES Act or the interagency guidance.
(2) TDRs involving changes in the amount or timing of principal payments may involve principal forgiveness or deferral of periodic and/or final principal payments. Because forgiveness of principal is rare for corporate
loans, modifications typically have little to no impact on the loans’ projected cash flows and thus little to no impact on the allowance established for the loans. Charge-offs for amounts deemed uncollectible may be
recorded at the time of the restructuring or may have already been recorded in prior periods such that no charge-off is required at the time of the modification.
(3) TDRs involving changes in the amount or timing of interest payments may involve a below-market interest rate.

The following table presents total corporate loans modified in a TDR as well as those TDRs that defaulted and for which the payment default occurred within
one year of a permanent modification. Default is defined as 60 days past due, except for classifiably managed commercial banking loans, where default is
defined as 90 days past due.

TDR loans that TDR loans that

re-defaulted in 2021 re-defaulted in 2020
TDR balances at within one year of TDR balances at within one year of
In millions of dollars December 31, 2021 modification December 31, 2020 modification
Commercial and industrial $236 $— $325 $—
Financial institutions — — — —
Mortgage and real estate 73 — 92 —
Lease financing — — — —
Other 41 — 33 —
Total(1) $350 $— $450 $—

(1) The above table reflects activity for loans outstanding that were considered TDRs as of the end of the reporting period.

215
This page intentionally left blank.

216
15. ALLOWANCE FOR CREDIT LOSSES

In millions of dollars 2021 2020 2019

Allowance for credit losses on loans (ACLL) at beginning of year $ 24,956 $ 12,783 $ 12,315
Adjustments to opening balance(1):
Financial instruments—credit losses (CECL) adoption — 4,201 —
Variable post-charge-off third-party collection costs — (443) —
Adjusted ACLL at beginning of year $ 24,956 $ 16,541 $ 12,315
Gross credit losses on loans $ (6,720) $ (9,263) $ (9,341)
Gross recoveries on loans 1,825 1,652 1,573
Net credit losses on loans (NCLs) $ (4,895) $ (7,611) $ (7,768)
Replenishment of NCLs $ 4,895 $ 7,611 $ 7,768
Net reserve builds (releases) for loans (7,283) 7,635 364
Net specific reserve builds (releases) for loans (715) 676 86
Total provision for credit losses on loans (PCLL) $ (3,103) $ 15,922 $ 8,218
Initial allowance for credit losses on newly purchased credit-deteriorated assets during the period — 4 —
Other, net (see table below) (503) 100 18
ACLL at end of year $ 16,455 $ 24,956 $ 12,783
Allowance for credit losses on unfunded lending commitments (ACLUC) at beginning of year(2) $ 2,655 $ 1,456 $ 1,367
Adjustment to opening balance for CECL adoption(1) — (194) —
Provision (release) for credit losses on unfunded lending commitments (788) 1,446 92
Other, net(3) 4 (53) (3)
ACLUC at end of year(2) $ 1,871 $ 2,655 $ 1,456
Total allowance for credit losses on loans, leases and unfunded lending commitments $ 18,326 $ 27,611 $ 14,239

Other, net details

In millions of dollars 2021 2020 2019

Sales or transfers of various consumer loan portfolios to HFS
Reclass of Australia consumer ACLL to HFS $(280) $ — $—
Reclass of the Philippines consumer ACLL to HFS (90) — —
Transfer of real estate loan portfolios — (4) (42)
Sales or transfers of various consumer loan portfolios to HFS $(370) $ (4) $(42)
FX translation and other (133) 104 60
Other, net $(503) $100 $ 18

(1) See “Accounting Changes” in Note 1 to the Consolidated Financial Statements for additional details.
(2) Represents additional credit loss reserves for unfunded lending commitments and letters of credit recorded in Other liabilities on the Consolidated Balance Sheet.
(3) 2020 includes a non-provision transfer of $68 million, representing reserves on performance guarantees. The reserves on these contracts have been reclassified out of the allowance for credit losses on unfunded
lending commitments and into Other liabilities on the Consolidated Balance Sheet beginning in 2020.

217
Allowance for Credit Losses on Loans and End-of-Period Loans at December 31, 2021

In millions of dollars Corporate Consumer Total

ACLL at beginning of year $ 5,402 $ 19,554 $ 24,956
Gross credit losses on loans (522) (6,198) (6,720)
Gross recoveries on loans 127 1,698 1,825
Replenishment of NCLs 395 4,500 4,895
Net reserve builds (releases) (2,254) (5,029) (7,283)
Net specific reserve builds (releases) (278) (437) (715)
Initial allowance for credit losses on newly purchased credit-deteriorated assets during the year — — —
Other (31) (472) (503)
Ending balance $ 2,839 $ 13,616 $ 16,455
ACLL
Collectively evaluated $ 2,614 $ 12,816 $ 15,430
Individually evaluated 225 800 1,025
Purchased credit deteriorated — — —
Total ACLL $ 2,839 $ 13,616 $ 16,455
Loans, net of unearned income
Collectively evaluated $388,584 $267,424 $656,008
Individually evaluated 1,877 3,681 5,558
Purchased credit deteriorated — 119 119
Held at fair value 6,070 12 6,082
Total loans, net of unearned income $396,531 $271,236 $667,767

Allowance for Credit Losses on Loans and End-of-Period Loans at December 31, 2020

In millions of dollars Corporate Consumer Total

ACLL at beginning of year $ 2,886 $ 9,897 $ 12,783
Adjustments to opening balance:
Financial instruments—credit losses (CECL)(1) (721) 4,922 4,201
Variable post-charge-off third-party collection costs(1) — (443) (443)
Adjusted ACLL at beginning of year $ 2,165 $ 14,376 $ 16,541
Gross credit losses on loans $ (1,072) $ (8,191) $ (9,263)
Gross recoveries on loans 86 1,566 1,652
Replenishment of NCLs 986 6,625 7,611
Net reserve builds (releases) 2,890 4,745 7,635
Net specific reserve builds (releases) 282 394 676
Initial allowance for credit losses on newly purchased credit-deteriorated assets during the year — 4 4
Other 65 35 100
Ending balance $ 5,402 $ 19,554 $ 24,956
ACLL
Collectively evaluated $ 4,887 $ 18,207 $ 23,094
Individually evaluated 515 1,345 1,860
Purchased credit deteriorated — 2 2
Total ACLL $ 5,402 $ 19,554 $ 24,956
Loans, net of unearned income
Collectively evaluated $376,677 $283,885 $660,562
Individually evaluated 3,527 4,799 8,326
Purchased credit deteriorated — 141 141
Held at fair value 6,840 14 6,854
Total loans, net of unearned income $387,044 $288,839 $675,883

(1) See “Accounting Changes” in Note 1 to the Consolidated Financial Statements for additional details.

218
Allowance for Credit Losses on Loans at December 31, 2019

In millions of dollars Corporate Consumer Total

ACLL at beginning of year $2,811 $ 9,504 $ 12,315
Gross credit losses on loans (487) (8,854) (9,341)
Gross recoveries on loans 95 1,478 1,573
Replenishment of NCLs 392 7,376 7,768
Net reserve builds (releases) 96 268 364
Net specific reserve builds (releases) (21) 107 86
Other — 18 18
Ending balance $2,886 $ 9,897 $ 12,783

Allowance for Credit Losses on HTM Debt Securities

Year ended December 31, 2021

All other
Mortgage- State and Foreign Asset- debt
In millions of dollars backed municipal government backed securities Total HTM
Allowance for credit losses on HTM debt securities at beginning of year $ 3 $ 74 $ 6 $ 3 $— $86
Gross credit losses — — — — — —
Gross recoveries 3 — — — — 3
Net credit losses (NCLs) $ 3 $— $— $— $— $ 3
Replenishment of NCLs $ (3) $— $— $— $— $ (3)
Net reserve builds (releases) 7 1 (2) (2) — 4
Net specific reserve builds (releases) (4) — — — — (4)
Total provision for credit losses on HTM debt securities $— $ 1 $ (2) $ (2) $— $ (3)
Other, net $— $— $— $ 1 $— $ 1
Initial allowance for credit losses on newly purchased credit-deteriorated securities
during the year — — — — — —
Allowance for credit losses on HTM debt securities at end of year $ 6 $ 75 $ 4 $ 2 $— $87

Allowance for Credit Losses on HTM Debt Securities

Year ended December 31, 2020

All other
Mortgage- State and Foreign Asset- debt
In millions of dollars backed municipal government backed securities Total HTM
Allowance for credit losses on HTM debt securities at beginning of year $— $— $— $— $— $—
Adjustment to opening balance for CECL adoption — 61 4 5 70
Gross credit losses — — — — — —
Gross recoveries — — — — — —
Net credit losses (NCLs) $— $— $— $— $— $—
Replenishment of NCLs $— $— $— $— $— $—
Net reserve builds (releases) (2) 10 (2) 1 — 7
Net specific reserve builds (releases) — — — — — —
Total provision for credit losses on HTM debt securities $ (2) $ 10 $ (2) $ 1 $— $ 7
Other, net $ 5 $ 3 $ 4 $ (3) $— $ 9
Initial allowance for credit losses on newly purchased credit-deteriorated securities
during the year — — — — — —
Allowance for credit losses on HTM debt securities at end of year $ 3 $ 74 $ 6 $ 3 $— $ 86

219
Allowance for Credit Losses on Other Assets

Year ended December 31, 2021

Securities
borrowed and
Cash and purchased under
due from Deposits agreements Brokerage All other
In millions of dollars banks with banks to resell receivables assets(1) Total
Allowance for credit losses on other assets at beginning of year $— $ 20 $ 10 $— $ 25 $ 55
Gross credit losses — — — — (2) (2)
Gross recoveries — — — — — —
Net credit losses (NCLs) $— $— $— $— $ (2) $ (2)
Replenishment of NCLs $— $— $— $— $ 2 $ 2
Net reserve builds (releases) — 2 (4) — — (2)
Total provision for credit losses $— $ 2 $ (4) $— $ 2 $—
Other, net $— $ (1) $— $— $ 1 $—
Allowance for credit losses on other assets at
end of year $— $ 21 $ 6 $— $ 26 $ 53

(1) Primarily accounts receivable.

Allowance for Credit Losses on Other Assets

Year ended December 31, 2020

Securities
borrowed and
Cash and purchased under
due from Deposits agreements Brokerage All other
In millions of dollars banks with banks to resell receivables assets(1) Total
Allowance for credit losses on other assets at beginning of year $— $— $— $— $— $—
Adjustment to opening balance for CECL adoption 6 14 2 1 3 26
Gross credit losses — — — — — —
Gross recoveries — — — — — —
Net credit losses (NCLs) $— $— $— $— $— $—
Replenishment of NCLs $— $— $— $— $— $—
Net reserve builds (releases) (6) 5 8 (1) 1 7
Total provision for credit losses $ (6) $ 5 $ 8 $ (1) $ 1 $ 7
Other, net $— $ 1 $— $— $ 21 $ 22
Allowance for credit losses on other assets at end of year $— $ 20 $ 10 $— $ 25 $ 55

(1) Primarily accounts receivable.

For ACL on AFS debt securities, see Note 13 to the Consolidated Financial Statements.

220
16. GOODWILL AND INTANGIBLE ASSETS

Goodwill
The changes in Goodwill were as follows:

Institutional Global
Clients Consumer
In millions of dollars Group Banking Total
Balance at December 31, 2018 $ 9,959 $12,087 $22,046
Foreign exchange translation 65 15 80
Balance at December 31, 2019 $10,024 $12,102 $22,126
Foreign exchange translation (4) 40 36
Balance at December 31, 2020 $10,020 $12,142 $22,162
Foreign exchange translation (267) (116) (383)
Divestitures(1) — (480) (480)
Balance at December 31, 2021 $ 9,753 $11,546 $21,299

(1) Goodwill allocated primarily to the Australia and the Philippines consumer banking businesses, which were reclassified as HFS during 2021. See Note 2 to the Consolidated Financial Statements.

The Company performed its annual goodwill impairment test using

data as of July 1, 2021, at the level below each operating segment (referred
to as a reporting unit). The fair values of the Company’s reporting units
as a percentage of their carrying values ranged from approximately 125%
to 153%, resulting in no impairment. While the inherent risk related to
uncertainty is embedded in the key assumptions used in the valuations, the
economic and business environments continue to evolve as management
implements its strategic refresh, which includes, among others, the exits
of consumer businesses in 13 markets in Asia and EMEA, as well as the
exit of the Mexico consumer, small business and middle-market banking
operations, and Citi’s implementation of its new operating segment and
reporting unit structure in the first quarter of 2022. If management’s future
estimate of key economic and market assumptions were to differ from its
current assumptions, Citi could potentially experience material goodwill
impairment charges in the future. Citi expects that the implementation of its
new operating segments and reporting units in the first quarter of 2022, as
well as the timing and sequencing of the sales of its Asia consumer banking
businesses, may result in goodwill impairment.
For additional information regarding Citi’s goodwill impairment testing
process, see the following Notes to the Consolidated Financial Statements:
Note 1 for Citi’s accounting policy for goodwill, and Note 3 for a description of
Citi’s operating segments.

221
Intangible Assets
The components of intangible assets were as follows:

December 31, 2021 December 31, 2020

Gross Net Gross Net
carrying Accumulated carrying carrying Accumulated carrying
In millions of dollars amount amortization amount amount amortization amount
Purchased credit card relationships $ 5,579 $4,348 $1,231 $ 5,648 $4,229 $1,419
Credit card contract-related intangibles(1) 3,912 1,372 2,540 3,929 1,276 2,653
Core deposit intangibles 39 39 — 45 44 1
Other customer relationships 429 305 124 455 314 141
Present value of future profits 31 29 2 32 30 2
Indefinite-lived intangible assets 183 — 183 190 — 190
Other 37 26 11 72 67 5
Intangible assets (excluding MSRs) $10,210 $6,119 $4,091 $10,371 $5,960 $4,411
Mortgage servicing rights (MSRs)(2) 404 — 404 336 — 336
Total intangible assets $10,614 $6,119 $4,495 $10,707 $5,960 $4,747

(1) Primarily reflects contract-related intangibles associated with the American Airlines, The Home Depot, Costco and AT&T credit card program agreements, which represented 97% of the aggregate net carrying amount
as of December 31, 2021.
(2) For additional information on Citi’s MSRs, see Note 21 to the Consolidated Financial Statements.

Intangible assets amortization expense was $360 million, $419 million

and $564 million for 2021, 2020 and 2019, respectively. Intangible assets
amortization expense is estimated to be $345 million in 2022, $347 million in
2023, $367 million in 2024, $371 million in 2025 and $342 million in 2026.
The changes in intangible assets were as follows:

Net carrying Net carrying

amount at Acquisitions/ FX amount at
December 31, renewals/ translation December 31,
In millions of dollars 2020 divestitures Amortization Impairments and other 2021
Purchased credit card relationships (1)
$1,419 $(15) $(171) $— $ (2) $1,231
Credit card contract-related intangibles(2) 2,653 29 (140) (1) (1) 2,540
Core deposit intangibles 1 — (1) — — —
Other customer relationships 141 20 (24) — (13) 124
Present value of future profits 2 — — — — 2
Indefinite-lived intangible assets 190 — — — (7) 183
Other 5 29 (24) — 1 11
Intangible assets (excluding MSRs) $4,411 $ 63 $(360) $ (1) $(22) $4,091
Mortgage servicing rights (MSRs)(3) 336 404
Total intangible assets $4,747 $4,495

(1) Reflects intangibles for the value of cardholder relationships, which are discrete from partner contract-related intangibles, and includes credit card accounts primarily in the Costco, Macy’s and Sears portfolios.
(2) Primarily reflects contract-related intangibles associated with the American Airlines, The Home Depot, Costco and AT&T credit card program agreements, which represent 97% and 96% of the aggregate net carrying
amount at December 31, 2021 and 2020, respectively.
(3) For additional information on Citi’s MSRs, including the rollforward from 2020 to 2021, see Note 21 to the Consolidated Financial Statements.

222
17. DEBT Long-Term Debt

Short-Term Borrowings Balances at

December 31,
December 31, Weighted
2021 2020 average
Weighted Weighted In millions of dollars coupon1) Maturities 2021 2020
average average
In millions of dollars Balance coupon Balance coupon Citigroup Inc. (2)

Senior debt 2.88% 2022–2098 $137,651 $142,197

Commercial paper Subordinated debt(3) 4.65 2022–2046 25,560 26,636
Bank(1) $ 9,026 $10,022 Trust preferred securities 6.30 2036–2067 1,734 1,730
Broker-dealer and other(2) 6,992 7,988 Bank(4)
Total commercial paper $16,018 0.22% $18,010 0.24% Senior debt 1.54 2022–2039 23,567 44,742
Other borrowings(3) 11,955 0.91 11,504 0.48 Broker-dealer(5)
Senior debt 0.84 2022–2070 65,652 55,896
Total $27,973 $29,514
Subordinated debt(3) — 2022–2046 210 485
(1) Represents Citibank entities as well as other bank entities.
(2) Represents broker-dealer and other non-bank subsidiaries that are consolidated into Citigroup Inc., the Total 2.94% $254,374 $271,686
parent holding company.
(3) Includes borrowings from Federal Home Loan Banks and other market participants. At Senior debt $226,870 $242,835
December 31, 2021 and 2020, collateralized short-term advances from Federal Home Loan Banks Subordinated debt(3) 25,770 27,121
were $0.0 billion and $4.0 billion, respectively. Trust preferred securities 1,734 1,730
Total $254,374 $271,686
Borrowings under bank lines of credit may be at interest rates based on
LIBOR, CD rates, the prime rate or bids submitted by the banks. Citigroup (1) The weighted average coupon excludes structured notes accounted for at fair value.
(2) Represents the parent holding company.
pays commitment fees for its lines of credit. (3) Includes notes that are subordinated within certain countries, regions or subsidiaries.
Some of Citigroup’s non-bank subsidiaries have credit facilities with (4) Represents Citibank entities as well as other bank entities. At December 31, 2021 and 2020,
collateralized long-term advances from Federal Home Loan Banks were $5.3 billion and $10.9 billion,
Citigroup’s subsidiary depository institutions, including Citibank. Borrowings respectively.
under these facilities are secured in accordance with Section 23A of the (5) Represents broker-dealer and other non-bank subsidiaries that are consolidated into Citigroup Inc., the
parent holding company. Certain Citigroup consolidated hedging activities are also included in this line.
Federal Reserve Act.
Citigroup Global Markets Holdings Inc. (CGMHI) has borrowing The Company issues both fixed- and variable-rate debt in a range of
agreements consisting of facilities that CGMHI has been advised are currencies. It uses derivative contracts, primarily interest rate swaps, to
available, but where no contractual lending obligation exists. These effectively convert a portion of its fixed-rate debt to variable-rate debt. The
arrangements are reviewed on an ongoing basis to ensure flexibility in maturity structure of the derivatives generally corresponds to the maturity
meeting CGMHI’s short-term requirements. structure of the debt being hedged. In addition, the Company uses other
derivative contracts to manage the foreign exchange impact of certain debt
issuances. At December 31, 2021, the Company’s overall weighted average
interest rate for long-term debt, excluding structured notes accounted for at
fair value, was 2.94% on a contractual basis and 3.12% including the effects
of derivative contracts.

223
Aggregate annual maturities of long-term debt obligations (based on final maturity dates) including trust preferred securities are as follows:

In millions of dollars 2022 2023 2024 2025 2026 Thereafter Total

Citigroup Inc. $ 9,955 $14,440 $12,475 $16,798 $21,483 $ 89,794 $164,945
Bank 9,839 4,227 5,028 473 68 3,932 23,567
Broker-dealer 13,199 11,813 8,066 3,995 5,499 23,290 65,862
Total $32,993 $30,480 $25,569 $21,266 $27,050 $117,016 $254,374

The following table summarizes Citi’s outstanding trust preferred securities at December 31, 2021:

Junior subordinated debentures owned by trust

Common
shares Redeemable
Issuance Securities Liquidation Coupon issued by issuer
Trust date issued value(1) rate(2) to parent Amount Maturity beginning
In millions of dollars, except securities and share amounts

Citigroup Capital III Dec. 1996 194,053 $ 194 7.625% 6,003 $ 200 Dec. 1, 2036 Not redeemable
3 mo LIBOR
Citigroup Capital XIII Sept. 2010 89,840,000 2,246 + 637 bps 1,000 2,246 Oct. 30, 2040 Oct. 30, 2015
3 mo sterling
LIBOR +
Citigroup Capital XVIII June 2007 99,901 135 88.75 bps 50 135 June 28, 2067 June 28, 2017
Total obligated $ 2,575 $2,581

Note: Distributions on the trust preferred securities and interest on the subordinated debentures are payable semiannually for Citigroup Capital III and Citigroup Capital XVIII and quarterly for Citigroup Capital XIII.
(1) Represents the notional value received by outside investors from the trusts at the time of issuance. This differs from Citi’s balance sheet carrying value due primarily to unamortized discount and issuance costs.
(2) In each case, the coupon rate on the subordinated debentures is the same as that on the trust preferred securities.

224
18. REGULATORY CAPITAL table. The regulatory agencies are required by law to take specific, prompt
corrective actions with respect to institutions that do not meet minimum
Citigroup is subject to risk-based capital and leverage standards issued
capital standards.
by the Federal Reserve Board, which constitute the U.S. Basel III rules.
The following table sets forth for Citigroup and Citibank the regulatory
Citi’s U.S.-insured depository institution subsidiaries, including Citibank,
capital tiers, total risk-weighted assets, quarterly adjusted average total assets,
are subject to similar standards issued by their respective primary
Total Leverage Exposure, risk-based capital ratios and leverage ratios:
bank regulatory agencies. These standards are used to evaluate capital
adequacy and include the required minimums shown in the following

Citigroup(4) Citibank(4)
Well- Well-
Stated capitalized December 31, December 31, capitalized December 31, December 31,
In millions of dollars, except ratios minimum minimum 2021 2020 minimum 2021 2020
Common Equity Tier 1 Capital $ 149,305 $ 147,274 $ 148,548 $ 142,854
Tier 1 Capital 169,568 167,053 150,679 144,962
Total Capital (Tier 1 Capital + Tier 2 Capital)—
Standardized Approach 203,838 205,002 175,427 169,449
Total Capital (Tier 1 Capital + Tier 2 Capital)—
Advanced Approaches 194,006 196,051 166,921 161,447
Total risk-weighted assets—Standardized Approach 1,219,175 1,242,381 1,066,015 1,054,056
Total risk-weighted assets—Advanced Approaches 1,209,374 1,278,977 1,017,774 1,047,088
Quarterly adjusted average total assets(1) 2,351,434 2,265,615 1,716,596 1,667,105
Total Leverage Exposure(2) 2,957,764 2,391,033 2,236,839 2,172,052
Common Equity Tier 1 Capital ratio(3) 4.5% N/A 12.25% 11.51% 6.5% 13.93% 13.55%
Tier 1 Capital ratio(3) 6.0 6.0% 13.91 13.06 8.0 14.13 13.75
Total Capital ratio(3) 8.0 10.0 16.04 15.33 10.0 16.40 15.42
Tier 1 Leverage ratio 4.0 N/A 7.21 7.37 5.0 8.78 8.70
Supplementary Leverage ratio 3.0 N/A 5.73 6.99 6.0 6.74 6.67

(1) Tier 1 Leverage ratio denominator.

(2) Supplementary Leverage ratio denominator.
(3) Citigroup’s reportable Common Equity Tier 1 Capital and Tier 1 Capital ratios were the lower derived under the Basel III Standardized Approach and the reportable Total Capital ratio was the lower derived under the
Basel III Advanced Approaches framework as of December 31, 2021, whereas Citigroup’s reportable Common Equity Tier 1 Capital, Tier 1 Capital and Total Capital ratios as of December 31, 2020 were the lower
derived under the Basel III Advanced Approaches framework. As of December 31, 2021 and 2020, Citibank’s reportable Common Equity Tier 1 Capital and Tier 1 Capital ratios were the lower derived under the Basel III
Standardized Approach, whereas the Total Capital ratios were the lower derived under the Basel III Advanced Approaches framework.
(4) Certain of the above prior-period amounts have been revised to conform with enhancements made in the current period.
N/A Not applicable

As indicated in the table above, Citigroup and Citibank were “well Banking Subsidiaries—Constraints on Dividends
capitalized” under the current federal bank regulatory agency definitions as There are various legal limitations on the ability of Citigroup’s subsidiary
of December 31, 2021 and 2020. depository institutions to extend credit, pay dividends or otherwise supply
funds to Citigroup and its non-bank subsidiaries. The approval of the
Office of the Comptroller of the Currency is required if total dividends
declared in any calendar year were to exceed amounts specified by the
agency’s regulations.
In determining the dividends, each subsidiary depository institution
must also consider its effect on applicable risk-based capital and leverage
ratio requirements, as well as policy statements of the federal bank
regulatory agencies that indicate that banking organizations should
generally pay dividends out of current operating earnings. Citigroup received
$6.2 billion and $2.3 billion in dividends from Citibank during 2021 and
2020, respectively.

225
19. CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (AOCI)
Changes in each component of Citigroup’s Accumulated other comprehensive income (loss) were as follows:

Foreign
Net currency Excluded
unrealized Debt translation component Accumulated
gains (losses) valuation adjustment of fair other
on debt adjustment Cash flow Benefit (CTA), net of value comprehensive
In millions of dollars securities (DVA)(1) hedges(2) plans(3) hedges(4)(5) hedges income (loss)
Balance, December 31, 2018 $(2,250) $ 192 $ (728) $(6,257) $(28,070) $(57) $(37,170)
Other comprehensive income before reclassifications 3,065 (1,151) 549 (758) (321) 25 1,409
Increase (decrease) due to amounts reclassified
from AOCI (1,080) 15 302 206 — — (557)
Change, net of taxes $ 1,985 $ (1,136) $ 851 $ (552) $ (321) $ 25 $ 852
Balance, December 31, 2019 $ (265) $ (944) $ 123 $(6,809) $(28,391) $(32) $(36,318)
Other comprehensive income before reclassifications 4,837 (490) 2,027 (287) (250) (15) 5,822
Increase (decrease) due to amounts reclassified
from AOCI (1,252) 15 (557) 232 — — (1,562)
Change, net of taxes $ 3,585 $ (475) $ 1,470 $ (55) $ (250) $(15) $ 4,260
Balance, December 31, 2020 $ 3,320 $ (1,419) $ 1,593 $(6,864) $(28,641) $(47) $(32,058)
Other comprehensive income before reclassifications (3,556) 121 (679) 797 (2,537) (11) (5,865)
Increase (decrease) due to amounts reclassified
from AOCI (378) 111 (813) 215 12 11 (842)
Change, net of taxes $(3,934) $ 232 $(1,492) $ 1,012 $ (2,525) $— $ (6,707)
Balance, December 31, 2021 $ (614) $(1,187) $ 101 $(5,852) $(31,166) $(47) $(38,765)

(1) Reflects the after-tax valuation of Citi’s fair value option liabilities. See “Market Valuation Adjustments” in Note 24 to the Consolidated Financial Statements.
(2) Primarily driven by Citi’s pay fixed/receive floating interest rate swap programs that hedge the floating rates on liabilities.
(3) Primarily reflects adjustments based on the quarterly actuarial valuations of the Company’s significant pension and postretirement plans, annual actuarial valuations of all other plans and amortization of amounts
previously recognized in other comprehensive income.
(4) Primarily reflects the movements in (by order of impact) the Mexican peso, Euro, South Korean won, Chilean peso and Japanese yen against the U.S. dollar and changes in related tax effects and hedges for the year
ended December 31, 2021. Primarily reflects the movements in (by order of impact) the Mexican peso, Brazilian real, South Korean won and Euro against the U.S. dollar and changes in related tax effects and hedges
for the year ended December 31, 2020. Primarily reflects the movements in (by order of impact) the Indian rupee, Brazilian real, Chilean peso and Euro against the U.S. dollar and changes in related tax effects and
hedges for the year ended December 31, 2019. Amounts recorded in the CTA component of AOCI remain in AOCI until the sale or substantial liquidation of the foreign entity, at which point such amounts related to the
foreign entity are reclassified into earnings.
(5) December 31, 2021 includes an approximate $475 million (after-tax) ($625 million pretax) currency translation adjustment (CTA) loss (net of hedges) associated with Citi’s agreement to sell its consumer banking
business in Australia (see Note 2 to the Consolidated Financial Statements). The loss on sale primarily reflects the impact of the CTA loss (net of hedges) already reflected in AOCI. Upon closing, the CTA-related balance
will be removed from AOCI, resulting in a neutral impact from CTA to Citi’s Common Equity Tier 1 Capital.

226
The pretax and after-tax changes in each component of Accumulated other comprehensive income (loss) were as follows:

In millions of dollars Pretax Tax effect After-tax

Balance, December 31, 2018 $ (44,082) $ 6,912 $ (37,170)
Change in net unrealized gains (losses) on debt securities 2,633 (648) 1,985
Debt valuation adjustment (DVA) (1,473) 337 (1,136)
Cash flow hedges 1,120 (269) 851
Benefit plans (671) 119 (552)
Foreign currency translation adjustment (332) 11 (321)
Excluded component of fair value hedges 33 (8) 25
Change $ 1,310 $ (458) $ 852
Balance, December 31, 2019 $ (42,772) $ 6,454 $ (36,318)
Change in net unrealized gains (losses) on debt securities 4,799 (1,214) 3,585
Debt valuation adjustment (DVA) (616) 141 (475)
Cash flow hedges 1,925 (455) 1,470
Benefit plans (78) 23 (55)
Foreign currency translation adjustment (227) (23) (250)
Excluded component of fair value hedges (23) 8 (15)
Change $ 5,780 $(1,520) $ 4,260
Balance, December 31, 2020 $ (36,992) $ 4,934 $ (32,058)
Change in net unrealized gains (losses) on debt securities (5,301) 1,367 (3,934)
Debt valuation adjustment (DVA) 296 (64) 232
Cash flow hedges (1,969) 477 (1,492)
Benefit plans 1,252 (240) 1,012
Foreign currency translation adjustment (2,671) 146 (2,525)
Excluded component of fair value hedges 2 (2) —
Change $ (8,391) $ 1,684 $ (6,707)
Balance, December 31, 2021 $(45,383) $ 6,618 $(38,765)

227
 The Company recognized pretax (gains) losses related to amounts in AOCI reclassified to the Consolidated Statement of Income as follows:

Increase (decrease) in AOCI due to

amounts reclassified to Consolidated
Statement of Income
Year ended December 31,
In millions of dollars 2021 2020 2019
Realized (gains) losses on sales of investments $ (665) $ (1,756) $ (1,474)
Gross impairment losses 181 109 23
Subtotal, pretax $ (484) $ (1,647) $ (1,451)
Tax effect 106 395 371
Net realized (gains) losses on investments, after-tax(1) $ (378) $ (1,252) $ (1,080)
Realized DVA (gains) losses on fair value option liabilities, pretax $ 144 $ 20 $ 20
Tax effect (33) (5) (5)
Net realized DVA, after-tax $ 111 $ 15 $ 15
Interest rate contracts $(1,075) $ (734) $ 384
Foreign exchange contracts 4 4 7
Subtotal, pretax $(1,071) $ (730) $ 391
Tax effect 258 173 (89)
Amortization of cash flow hedges, after-tax(2) $ (813) $ (557) $ 302
Amortization of unrecognized:
Prior service cost (benefit) $ (23) $ (5) $ (12)
Net actuarial loss 302 322 286
Curtailment/settlement impact(3) 11 (8) 1
Subtotal, pretax $ 290 $ 309 $ 275
Tax effect (75) (77) (69)
Amortization of benefit plans, after-tax(3) $ 215 $ 232 $ 206
Excluded component of fair value hedges, pretax $ 15 $ — $ —
Tax effect (4) — —
Excluded component of fair value hedges, after-tax $ 11 $ — $ —
Foreign currency translation adjustment, pretax $ 19 $ — $ —
Tax effect (7) — —
Foreign currency translation adjustment, after-tax $ 12 $ — $ —
Total amounts reclassified out of AOCI, pretax $(1,087) $ (2,048) $ (765)
Total tax effect 245 486 208
Total amounts reclassified out of AOCI, after-tax $ (842) $ (1,562) $ (557)

(1) The pretax amount is reclassified to Realized gains (losses) on sales of investments, net and Gross impairment losses in the Consolidated Statement of Income. See Note 13 to the Consolidated Financial Statements for
additional details.
(2) See Note 22 to the Consolidated Financial Statements for additional details.
(3) See Note 8 to the Consolidated Financial Statements for additional details.

228
20. PREFERRED STOCK
The following table summarizes the Company’s preferred stock outstanding:

Carrying value
in millions of dollars
Redemption
price per
depositary Number of
Redeemable by Dividend share/preference depositary December 31, December 31,
Issuance date issuer beginning rate share shares 2021 2020
Series A(1) October 29, 2012 January 30, 2023 5.950% $ 1,000 1,500,000 $ 1,500 $ 1,500
Series B(2) December 13, 2012 February 15, 2023 5.900 1,000 750,000 750 750
Series D(3) April 30, 2013 May 15, 2023 5.350 1,000 1,250,000 1,250 1,250
Series J(4) September 19, 2013 September 30, 2023 7.125 25 38,000,000 950 950
Series K(5) October 31, 2013 November 15, 2023 6.875 25 59,800,000 1,495 1,495
Series M(6) April 30, 2014 May 15, 2024 6.300 1,000 1,750,000 1,750 1,750
Series P(7) April 24, 2015 May 15, 2025 5.950 1,000 2,000,000 2,000 2,000
Series Q(8) August 12, 2015 August 15, 2020 4.316 1,000 1,250,000 — 1,250
Series R(9) November 13, 2015 November 15, 2020 4.699 1,000 1,500,000 — 1,500
Series S(10) February 2, 2016 February 12, 2021 6.300 25 41,400,000 — 1,035
Series T(11) April 25, 2016 August 15, 2026 6.250 1,000 1,500,000 1,500 1,500
Series U(12) September 12, 2019 September 12, 2024 5.000 1,000 1,500,000 1,500 1,500
Series V(13) January 23, 2020 January 30, 2025 4.700 1,000 1,500,000 1,500 1,500
Series W(14) December 10, 2020 December 10, 2025 4.000 1,000 1,500,000 1,500 1,500
Series X(15) February 18, 2021 February 18, 2026 3.875 1,000 2,300,000 2,300 —
Series Y(16) October 20, 2021 October 20, 2026 4.150 1,000 1,000,000 1,000 —
$18,995 $19,480

(1) Issued as depositary shares, each representing a 1/25th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are payable semiannually on January 30 and July 30 at a
fixed rate until, but excluding, January 30, 2023, thereafter payable quarterly on January 30, April 30, July 30 and October 30 at a floating rate, in each case when, as and if declared by the Citi Board of Directors.
(2) Issued as depositary shares, each representing a 1/25th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are payable semiannually on February 15 and August 15
at a fixed rate until, but excluding, February 15, 2023, thereafter payable quarterly on February 15, May 15, August 15 and November 15 at a floating rate, in each case when, as and if declared by the Citi Board
of Directors.
(3) Issued as depositary shares, each representing a 1/25th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are payable semiannually on May 15 and November 15 at
a fixed rate until, but excluding, May 15, 2023, thereafter payable quarterly on February 15, May 15, August 15 and November 15 at a floating rate, in each case when, as and if declared by the Citi Board of Directors.
(4) Issued as depositary shares, each representing a 1/1,000th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are payable quarterly on March 30, June 30,
September 30 and December 30 at a fixed rate until, but excluding, September 30, 2023, thereafter payable quarterly on the same dates at a floating rate, in each case when, as and if declared by the Citi Board
of Directors.
(5) Issued as depositary shares, each representing a 1/1,000th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are payable quarterly on February 15, May 15,
August 15 and November 15 at a fixed rate until, but excluding, November 15, 2023, thereafter payable quarterly on the same dates at a floating rate, in each case when, as and if declared by the Citi Board
of Directors.
(6) Issued as depositary shares, each representing a 1/25th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are payable semiannually on May 15 and November 15 at
a fixed rate until, but excluding, May 15, 2024, thereafter payable quarterly on February 15, May 15, August 15 and November 15 at a floating rate, in each case when, as and if declared by the Citi Board of Directors.
(7) Issued as depositary shares, each representing a 1/25th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are payable semiannually on May 15 and November
15 at a fixed rate until, but excluding, May 15, 2025, and thereafter payable quarterly on February 15, May 15, August 15 and November 15 at a floating rate, in each case when, as and if declared by the Citi Board
of Directors.
(8) The Series Q preferred stock was redeemed in full on May 17, 2021.
(9) The Series R preferred stock was redeemed in full on May 17, 2021.
(10) The Series S preferred stock was redeemed in full on February 12, 2021.
(11) Issued as depositary shares, each representing a 1/25th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are payable semiannually on February 15 and August 15
at a fixed rate until, but excluding, August 15, 2026, thereafter payable quarterly on February 15, May 15, August 15 and November 15 at a floating rate, in each case when, as and if declared by the Citi Board
of Directors.
(12) Issued as depositary shares, each representing a 1/25th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are payable semiannually on March 12 and September 12
at a fixed rate until, but excluding, September 12, 2024, thereafter payable quarterly on March 12, June 12, September 12 and December 12 at a floating rate, in each case when, as and if declared by the Citi Board
of Directors.
(13) Issued as depositary shares, each representing a 1/25th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are payable semiannually on January 30 and July 30 at a
fixed rate until, but excluding, January 30, 2025, thereafter payable quarterly on January 30, April 30, July 30 and October 30 at a floating rate, in each case when, as and if declared by the Citi Board of Directors.
(14) Issued as depositary shares, each representing a 1/25th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are payable quarterly on March 10, June 10,
September 10 and December 10 at a fixed rate until, but excluding, December 10, 2025, thereafter payable quarterly on the same dates at a floating rate, in each case when, as and if declared by the Citi Board
of Directors.
(15) Issued as depositary shares, each representing a 1/25th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are payable quarterly on February 18, May 18, August 18
and November 18 at a fixed rate until, but excluding, February 18, 2026, thereafter payable quarterly on the same dates at a floating rate, in each case when, as and if declared by the Citi Board of Directors.
(16) Issued as depositary shares, each representing a 1/25th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are payable quarterly on February 15, May 15, August 15
and November 15 at a fixed rate until, but excluding, November 15, 2026, thereafter payable quarterly on the same dates at a floating rate, in each case when, as and if declared by the Citi Board of Directors.

229
21. SECURITIZATIONS AND VARIABLE INTEREST The variable interest holder, if any, that has a controlling financial
ENTITIES interest in a VIE is deemed to be the primary beneficiary and must
consolidate the VIE.
Uses of Special Purpose Entities
The Company must evaluate each VIE to understand the purpose
A special purpose entity (SPE) is an entity designed to fulfill a specific limited
and design of the entity, the role the Company had in the entity’s design
need of the company that organized it. The principal uses of SPEs by Citi are
and its involvement in the VIE’s ongoing activities. The Company then
to assist clients in securitizing their financial assets and to create investment
must evaluate which activities most significantly impact the economic
products for clients and to obtain liquidity and optimize capital efficiency
performance of the VIE and who has the power to direct such activities.
by securitizing certain of Citi’s financial assets. SPEs may be organized in
For those VIEs where the Company determines that it has the power
various legal forms, including trusts, partnerships or corporations. In a
to direct the activities that most significantly impact the VIE’s economic
securitization, through the SPE’s issuance of debt and equity instruments,
performance, the Company must then evaluate its economic interests, if any,
certificates, commercial paper or other notes of indebtedness, the company
and determine whether it could absorb losses or receive benefits that could
transferring assets to the SPE converts all (or a portion) of those assets into
potentially be significant to the VIE. When evaluating whether the Company
cash before they would have been realized in the normal course of business.
has an obligation to absorb losses that could potentially be significant, it
These issuances are recorded on the balance sheet of the SPE, which may
considers the maximum exposure to such loss without consideration of
or may not be consolidated onto the balance sheet of the company that
probability. Such obligations could be in various forms, including, but not
organized the SPE.
limited to, debt and equity investments, guarantees, liquidity agreements and
Investors usually have recourse only to the assets in the SPE, but may
certain derivative contracts.
also benefit from other credit enhancements, such as a collateral account,
In various other transactions, the Company may (i) act as a derivative
a line of credit or a liquidity facility, such as a liquidity put option or asset
counterparty (e.g., interest rate swap, cross-currency swap or purchaser
purchase agreement. Because of these enhancements, the SPE issuances
of credit protection under a credit default swap or total return swap where
typically obtain a more favorable credit rating than the transferor could
the Company pays the total return on certain assets to the SPE), (ii) act as
obtain for its own debt issuances. This results in less expensive financing
underwriter or placement agent, (iii) provide administrative, trustee or other
costs than unsecured debt. The SPE may also enter into derivative contracts
services or (iv) make a market in debt securities or other instruments issued
in order to convert the yield or currency of the underlying assets to match
by VIEs. The Company generally considers such involvement, by itself, not
the needs of the SPE investors or to limit or change the credit risk of the SPE.
to be variable interests and thus not an indicator of power or potentially
Citigroup may be the provider of certain credit enhancements as well as the
significant benefits or losses.
counterparty to any related derivative contracts.
Most of Citigroup’s SPEs are variable interest entities (VIEs).
Variable Interest Entities
VIEs are described in Note 1 to the Consolidated Financial Statements.
Investors that finance the VIE through debt or equity interests or other
counterparties providing other forms of support, such as guarantees, certain
fee arrangements or certain types of derivative contracts, are variable interest
holders in the entity.

230
 Citigroup’s involvement with consolidated and unconsolidated VIEs with which the Company holds significant variable interests or has continuing
involvement through servicing a majority of the assets in a VIE is presented below:

As of December 31, 2021

Maximum exposure to loss in significant unconsolidated VIEs(1)
Funded exposures(2) Unfunded exposures
Total
involvement Consolidated Significant Guarantees
with SPE VIE/SPE unconsolidated Debt Equity Funding and
In millions of dollars assets assets VIE assets(3) investments investments commitments derivatives Total
Credit card securitizations $ 31,518 $31,518 $ — $ — $ — $ — $ — $ —
Mortgage securitizations(4)
U.S. agency-sponsored 113,641 — 113,641 1,582 — — 43 1,625
Non-agency-sponsored 60,851 632 60,219 2,479 — 5 — 2,484
Citi-administered asset-backed commercial
paper conduits 14,018 14,018 — — — — — —
Collateralized loan obligations (CLOs) 8,302 — 8,302 2,636 — — — 2,636
Asset-based financing(5) 246,632 11,085 235,547 32,242 1,139 12,189 — 45,570
Municipal securities tender option bond
trusts (TOBs) 3,251 905 2,346 2 — 1,498 — 1,500
Municipal investments 20,597 3 20,594 2,512 3,617 3,562 — 9,691
Client intermediation 904 297 607 75 — — 224 299
Investment funds 498 179 319 — — 12 1 13
Other — — — — — — — —
Total $500,212 $58,637 $441,575 $ 41,528 $ 4,756 $17,266 $268 $ 63,818

As of December 31, 2020

Maximum exposure to loss in significant unconsolidated VIEs(1)
Funded exposures(2) Unfunded exposures
Total
involvement Consolidated Significant Guarantees
with SPE VIE/SPE unconsolidated Debt Equity Funding and
In millions of dollars assets assets VIE assets(3) investments investments commitments derivatives Total
Credit card securitizations $ 32,423 $32,423 $ — $ — $ — $ — $ — $ —
Mortgage securitizations(4)
U.S. agency-sponsored 123,999 — 123,999 1,948 — — 61 2,009
Non-agency-sponsored 46,132 939 45,193 2,550 — 2 1 2,553
Citi-administered asset-backed commercial
paper conduits 16,730 16,730 — — — — — —
Collateralized loan obligations (CLOs) 18,332 — 18,332 4,273 — — — 4,273
Asset-based financing(5) 222,274 8,069 214,205 25,153 1,587 9,114 — 35,854
Municipal securities tender option bond
trusts (TOBs) 3,349 835 2,514 0 — 1,611 — 1,611
Municipal investments 20,335 — 20,335 2,569 4,056 3,041 — 9,666
Client intermediation 1,352 910 442 88 — — 56 144
Investment funds 488 153 335 — — 15 — 15
Other 0 0 0 0 — — — 0
Total $ 485,414 $60,059 $425,355 $ 36,581 $ 5,643 $13,783 $118 $ 56,125

(1) The definition of maximum exposure to loss is included in the text that follows this table.
(2) Included on Citigroup’s December 31, 2021 and 2020 Consolidated Balance Sheet.
(3) A significant unconsolidated VIE is an entity in which the Company has any variable interest or continuing involvement considered to be significant, regardless of the likelihood of loss.
(4) Citigroup mortgage securitizations also include agency and non-agency (private label) re-securitization activities. These re-securitization SPEs are not consolidated. See “Re-securitizations” below for further discussion.
(5) Included within this line are loans to third-party sponsored private equity funds, which represent $100 billion and $78 billion in unconsolidated VIE assets and $497 million and $425 million in maximum exposure to
loss as of December 31, 2021 and 2020, respectively.

231
The previous tables do not include: The asset balances for consolidated VIEs represent the carrying amounts
of the assets consolidated by the Company. The carrying amount may
• certain venture capital investments made by some of the Company’s represent the amortized cost or the current fair value of the assets depending
private equity subsidiaries, as the Company accounts for these investments
on the classification of the asset (e.g., loan or security) and the associated
in accordance with the Investment Company Audit Guide (codified in
accounting model ascribed to that classification.
ASC 946);
The asset balances for unconsolidated VIEs in which the Company has
• certain investment funds for which the Company provides investment significant involvement represent the most current information available to
management services and personal estate trusts for which the Company the Company. In most cases, the asset balances represent an amortized cost
provides administrative, trustee and/or investment management services; basis without regard to impairments, unless fair value information is readily
• certain third-party sponsored private equity funds to which the Company available to the Company.
provides secured credit facilities. The Company has no decision-making The maximum funded exposure represents the balance sheet carrying
power and does not consolidate these funds, some of which may meet amount of the Company’s investment in the VIE. It reflects the initial
the definition of a VIE. The Company’s maximum exposure to loss amount of cash invested in the VIE, adjusted for any accrued interest
is generally limited to a loan or lending-related commitment. As of and cash principal payments received. The carrying amount may also be
December 31, 2021 and 2020, the Company’s maximum exposure to adjusted for increases or declines in fair value or any impairment in value
loss related to these deals was $55.6 billion and $57.0 billion, respectively recognized in earnings. The maximum exposure of unfunded positions
(for more information on these positions, see Notes 14 and 26 to the represents the remaining undrawn committed amount, including liquidity
Consolidated Financial Statements); and credit facilities provided by the Company or the notional amount of
• certain VIEs structured by third parties in which the Company holds a derivative instrument considered to be a variable interest. In certain
securities in inventory, as these investments are made on arm’s- transactions, the Company has entered into derivative instruments or other
length terms; arrangements that are not considered variable interests in the VIE (e.g.,
• certain positions in mortgage- and asset-backed securities held by interest rate swaps, cross-currency swaps or where the Company is the
the Company, which are classified as Trading account assets or purchaser of credit protection under a credit default swap or total return
Investments, in which the Company has no other involvement with swap where the Company pays the total return on certain assets to the SPE).
the related securitization entity deemed to be significant (for more Receivables under such arrangements are not included in the maximum
information on these positions, see Notes 13 and 24 to the Consolidated exposure amounts.
Financial Statements);
• certain representations and warranties exposures in Citigroup residential
mortgage securitizations, in which the original mortgage loan balances
are no longer outstanding; and
• VIEs such as trust preferred securities trusts used in connection with the
Company’s funding activities. The Company does not have a variable
interest in these trusts.

232
Funding Commitments for Significant Unconsolidated VIEs—Liquidity Facilities and Loan Commitments
The following table presents the notional amount of liquidity facilities and loan commitments that are classified as funding commitments in the VIE
tables above:

December 31, 2021 December 31, 2020

Loan/equity Loan/equity
In millions of dollars Liquidity facilities commitments Liquidity facilities commitments
Non-agency-sponsored mortgage securitizations $ — $ 5 $ — $ 2
Asset-based financing — 12,189 — 9,114
Municipal securities tender option bond trusts (TOBs) 1,498 — 1,611 —
Municipal investments — 3,562 — 3,041
Investment funds — 12 — 15
Other — — — —
Total funding commitments $1,498 $15,768 $1,611 $12,172

Consolidated VIEs exposure to loss related to consolidated VIEs is significantly less than the
The Company engages in on-balance sheet securitizations, which are carrying value of the consolidated VIE assets due to outstanding third-party
securitizations that do not qualify for sales treatment; thus, the assets financing. Intercompany assets and liabilities are excluded from Citi’s
remain on Citi’s Consolidated Balance Sheet, and any proceeds received are Consolidated Balance Sheet. All VIE assets are restricted from being sold or
recognized as secured liabilities. In general, the third-party investors in the pledged as collateral. The cash flows from these assets are the only source
obligations of consolidated VIEs have legal recourse only to the assets of the used to pay down the associated liabilities, which are non-recourse to Citi’s
respective VIEs and do not have such recourse to the Company, except where general assets. See the Consolidated Balance Sheet for more information
Citi has provided a guarantee to the investors or is the counterparty to certain about these Consolidated VIE assets and liabilities.
derivative transactions involving the VIE. Thus, Citigroup’s maximum legal

Significant Interests in Unconsolidated VIEs—Balance Sheet Classification

The following table presents the carrying amounts and classification of significant variable interests in unconsolidated VIEs:

December 31, December 31,

In billions of dollars 2021 2020
Cash $ — $ —
Trading account assets 1.4 2.0
Investments 8.8 10.6
Total loans, net of allowance 35.4 29.3
Other 0.8 0.3
Total assets $46.4 $42.2

233
Credit Card Securitizations Citigroup has the power to direct the activities that most significantly impact
The Company securitizes credit card receivables through trusts established to the economic performance of the trusts. Citigroup holds a seller’s interest
purchase the receivables. Citigroup transfers receivables into the trusts on a and certain securities issued by the trusts, which could result in exposure
non-recourse basis. Credit card securitizations are revolving securitizations: to potentially significant losses or benefits from the trusts. Accordingly, the
as customers pay their credit card balances, the cash proceeds are used to transferred credit card receivables remain on Citi’s Consolidated Balance
purchase new receivables and replenish the receivables in the trust. Sheet with no gain or loss recognized. The debt issued by the trusts to third
Substantially all of the Company’s credit card securitization activity is parties is included on Citi’s Consolidated Balance Sheet.
through two trusts—Citibank Credit Card Master Trust (Master Trust) and Citi utilizes securitizations as one of the sources of funding for its business
Citibank Omni Trust (Omni Trust), with the substantial majority through in North America. The following table reflects amounts related to the
the Master Trust. These trusts are consolidated entities because, as servicer, Company’s securitized credit card receivables:

December 31, December 31,

In billions of dollars 2021 2020
Ownership interests in principal amount of trust credit card receivables
Sold to investors via trust-issued securities $ 9.7 $15.7
Retained by Citigroup as trust-issued securities 7.2 7.9
Retained by Citigroup via non-certificated interests 16.1 11.1
Total $ 33.0 $34.7

The following table summarizes selected cash flow information related to Master Trust Liabilities (at Par Value)
Citigroup’s credit card securitizations: The Master Trust issues fixed- and floating-rate term notes. Some of the term
notes may be issued to multi-seller commercial paper conduits. The weighted
In billions of dollars 2021 2020 2019 average maturity of the third-party term notes issued by the Master Trust was
Proceeds from new securitizations $ — $ 0.3 $ — 3.6 years as of December 31, 2021 and 2.9 years as of December 31, 2020.
Pay down of maturing notes (6.0) (4.3) (7.6)
Dec. 31, Dec. 31,
In billions of dollars 2021 2020
Managed Loans
Term notes issued to third parties $ 8.4 $13.9
After securitization of credit card receivables, the Company continues to Term notes retained by Citigroup affiliates 2.2 2.7
maintain credit card customer account relationships and provides servicing
Total Master Trust liabilities $10.6 $16.6
for receivables transferred to the trusts. As a result, the Company considers
the securitized credit card receivables to be part of the business it manages.
As Citigroup consolidates the credit card trusts, all managed securitized card Omni Trust Liabilities (at Par Value)
receivables are on-balance sheet. The Omni Trust issues fixed- and floating-rate term notes, some of which are
purchased by multi-seller commercial paper conduits. The weighted average
Funding, Liquidity Facilities and Subordinated Interests maturity of the third-party term notes issued by the Omni Trust was 1.6 years
As noted above, Citigroup securitizes credit card receivables through two as of December 31, 2021 and 1.1 years as of December 31, 2020.
securitization trusts—Master Trust and Omni Trust. The liabilities of the
trusts are included on the Consolidated Balance Sheet, excluding those Dec. 31, Dec. 31,
retained by Citigroup. In billions of dollars 2021 2020
Term notes issued to third parties $1.3 $1.8
Term notes retained by Citigroup affiliates 5.0 5.2
Total Omni Trust liabilities $6.3 $7.0

234
Mortgage Securitizations Citigroup does not have the power to direct the activities of the VIEs that
Citigroup provides a wide range of mortgage loan products to a diverse most significantly impact the entities’ economic performance. Therefore, Citi
customer base. Once originated, the Company often securitizes these loans does not consolidate these U.S. agency-sponsored mortgage securitization
through the use of VIEs. These VIEs are funded through the issuance of trust entities. Substantially all of the consumer loans sold or securitized through
certificates backed solely by the transferred assets. These certificates have non-consolidated trusts by Citigroup are U.S. prime residential mortgage
the same life as the transferred assets. In addition to providing a source of loans. Retained interests in non-consolidated agency-sponsored mortgage
liquidity and less expensive funding, securitizing these assets also reduces securitization trusts are classified as Trading account assets, except for
Citi’s credit exposure to the borrowers. These mortgage loan securitizations MSRs, which are included in Other assets on Citigroup’s Consolidated
are primarily non-recourse, thereby effectively transferring the risk of future Balance Sheet.
credit losses to the purchasers of the securities issued by the trust. Citigroup does not consolidate certain non-agency-sponsored mortgage
Citi’s U.S. consumer mortgage business generally retains the servicing securitization entities because Citi is either not the servicer with the power
rights and in certain instances retains investment securities, interest-only to direct the significant activities of the entity or Citi is the servicer, but the
strips and residual interests in future cash flows from the trusts and also servicing relationship is deemed to be a fiduciary relationship; therefore, Citi
provides servicing for a limited number of ICG securitizations. Citi’s ICG is not deemed to be the primary beneficiary of the entity.
business may hold investment securities pursuant to credit risk retention In certain instances, the Company has (i) the power to direct the activities
rules or in connection with secondary market-making activities. that most significantly impact the entities’ economic performance and
The Company securitizes mortgage loans generally through either a U.S. (ii) the obligation to either absorb losses or the right to receive benefits
government-sponsored agency, such as Ginnie Mae, Fannie Mae or Freddie that could be potentially significant to its non-agency-sponsored mortgage
Mac (U.S. agency-sponsored mortgages), or private label (non-agency- securitization entities and, therefore, is the primary beneficiary and, thus,
sponsored mortgages) securitization. Citi is not the primary beneficiary consolidates the VIE.
of its U.S. agency-sponsored mortgage securitization entities because

The following tables summarize selected cash flow information and retained interests related to Citigroup mortgage securitizations:

2021 2020 2019

U.S. agency- Non-agency- U.S. agency- Non-agency- U.S. agency- Non-agency-
sponsored sponsored sponsored sponsored sponsored sponsored
In billions of dollars mortgages mortgages mortgages mortgages mortgages mortgages
Principal securitized $6.1 $25.2 $ 9.4 $11.3 $5.3 $15.6
Proceeds from new securitizations(1) 6.4 25.4 10.0 11.4 5.5 15.5
Contractual servicing fees received 0.1 — 0.1 — 0.1 —
Cash flows received on retained interests and other net cash flows — 0.1 — — — —
Purchases of previously transferred financial assets 0.2 — 0.4 — 0.2 —

Note: Excludes re-securitization transactions.

(1) The proceeds from new securitizations in 2019 include $0.2 billion related to personal loan securitizations.

For non-consolidated mortgage securitization entities where the transfer Agency and non-agency securitization gains for the year ended
of loans to the VIE meets the conditions for sale accounting, Citi recognizes December 31, 2021 were $3.9 million and $493.4 million, respectively.
a gain or loss based on the difference between the carrying value of the Agency and non-agency securitization gains for the year ended
transferred assets and the proceeds received (generally cash but may be December 31, 2020 were $88.4 million and $139.4 million, respectively,
beneficial interests or servicing rights). and $16 million and $73.4 million, respectively, for the year ended
December 31, 2019.

2021 2020
Non-agency-sponsored mortgages (1)
Non-agency-sponsored mortgages(1)
U.S. agency- Senior Subordinated U.S. agency- Senior Subordinated
In millions of dollars sponsored mortgages interests(2) interests sponsored mortgages interests interests
Carrying value of retained interests(3) $374 $1,452 $955 $315 $1,210 $145

(1) Disclosure of non-agency-sponsored mortgages as senior and subordinated interests is indicative of the interests’ position in the capital structure of the securitization.
(2) Senior interests in non-agency-sponsored mortgages include $73 million related to personal loan securitizations at December 31, 2021.
(3) Retained interests consist of Level 2 and Level 3 assets depending on the observability of significant inputs. See Note 24 to the Consolidated Financial Statements for more information about fair value measurements.

235
 Key assumptions used in measuring the fair value of retained interests at the date of sale or securitization of mortgage receivables were as follows:

December 31, 2021

Non-agency-sponsored mortgages(1)
U.S. agency- Senior Subordinated
sponsored mortgages interests interests
Weighted average discount rate 8.7% 2.2% 2.8%
Weighted average constant prepayment rate 5.5% 6.3% 11.0%
Weighted average anticipated net credit losses(2) NM 1.8% 1.0%
Weighted average life 7.4 years 3.9 years 5.4 years

December 31, 2020

Non-agency-sponsored mortgages(1)
U.S. agency- Senior Subordinated
sponsored mortgages interests interests
Weighted average discount rate 5.4% 1.7% 3.0%
Weighted average constant prepayment rate 25.8% 3.4% 25.0%
Weighted average anticipated net credit losses(2) NM 1.7% 0.5%
Weighted average life 4.8 years 3.8 years 2.3 years

(1) Disclosure of non-agency-sponsored mortgages as senior and subordinated interests is indicative of the interests’ position in the capital structure of the securitization.
(2) Anticipated net credit losses represent estimated loss severity associated with defaulted mortgage loans underlying the mortgage securitizations disclosed above. Anticipated net credit losses, in this instance, do not
represent total credit losses incurred to date, nor do they represent credit losses expected on retained interests in mortgage securitizations.
NM Anticipated net credit losses are not meaningful due to U.S. agency guarantees.

The interests retained by the Company range from highly rated and/or senior in the capital structure to unrated and/or residual interests. Key assumptions
used in measuring the fair value of retained interests in securitizations of mortgage receivables at period end were as follows:

December 31, 2021

Non-agency-sponsored mortgages(1)
U.S. agency- Senior Subordinated
sponsored mortgages interests interests
Weighted average discount rate 3.7% 16.2% 4.0%
Weighted average constant prepayment rate 14.5% 6.8% 9.0%
Weighted average anticipated net credit losses(2) NM 1.0% 2.0%
Weighted average life 5.1 years 8.8 years 18.0 years

December 31, 2020

Non-agency-sponsored mortgages(1)
U.S. agency- Senior Subordinated
sponsored mortgages interests interests
Weighted average discount rate 5.9% 7.2% 4.3%
Weighted average constant prepayment rate 22.7% 5.3% 4.7%
Weighted average anticipated net credit losses(2) NM 1.2% 1.4%
Weighted average life 4.5 years 5.3 years 4.7 years

(1) Disclosure of non-agency-sponsored mortgages as senior and subordinated interests is indicative of the interests’ position in the capital structure of the securitization.
(2) Anticipated net credit losses represent estimated loss severity associated with defaulted mortgage loans underlying the mortgage securitizations disclosed above. Anticipated net credit losses, in this instance, do not
represent total credit losses incurred to date, nor do they represent credit losses expected on retained interests in mortgage securitizations.
NM Anticipated net credit losses are not meaningful due to U.S. agency guarantees.

236
 The sensitivity of the fair value to adverse changes of 10% and 20% in each of the key assumptions is presented in the tables below. The negative effect
of each change is calculated independently, holding all other assumptions constant. Because the key assumptions may not be independent, the net effect of
simultaneous adverse changes in the key assumptions may be less than the sum of the individual effects shown below.

December 31, 2021

Non-agency-sponsored mortgages
U.S. agency- Senior Subordinated
In millions of dollars sponsored mortgages interests interests
Discount rate
Adverse change of 10% $ (6) $ (1) $—
Adverse change of 20% (11) (1) —
Constant prepayment rate
Adverse change of 10% (19) — —
Adverse change of 20% (37) — —
Anticipated net credit losses
Adverse change of 10% NM — —
Adverse change of 20% NM — —

December 31, 2020

Non-agency-sponsored mortgages
U.S. agency- Senior Subordinated
In millions of dollars sponsored mortgages interests interests
Discount rate
Adverse change of 10% $ (8) $— $ (1)
Adverse change of 20% (15) (1) (1)
Constant prepayment rate
Adverse change of 10% (21) — —
Adverse change of 20% (40) — —
Anticipated net credit losses
Adverse change of 10% NM — —
Adverse change of 20% NM — —

NM Anticipated net credit losses are not meaningful due to U.S. agency guarantees.

The following table includes information about loan delinquencies and liquidation losses for assets held in non-consolidated, non-agency-sponsored
securitization entities:

Securitized assets 90 days past due Liquidation losses

In billions of dollars, except liquidation losses in millions 2021 2020 2021 2020 2021 2020
Securitized assets
Residential mortgages(1) $29.2 $16.9 $0.4 $0.5 $10.6 $26.2
Commercial and other 26.2 23.9 — — — —
Total $55.4 $40.8 $0.4 $0.5 $10.6 $26.2

(1) Securitized assets include $0.2 billion of personal loan securitizations as of December 31, 2021.

237
Mortgage Servicing Rights (MSRs) As of December 31, 2021 and December 31, 2020, Citi held no retained
In connection with the securitization of mortgage loans, Citi’s U.S. consumer interests in private label re-securitization transactions structured by Citi.
mortgage business generally retains the servicing rights, which entitle The Company also re-securitizes U.S. government-agency-guaranteed
the Company to a future stream of cash flows based on the outstanding mortgage-backed (agency) securities. During the years ended December
principal balances of the loans and the contractual servicing fee. Failure to 31, 2021 and 2020, Citi transferred agency securities with a fair value
service the loans in accordance with contractual requirements may lead to a of approximately $46.6 billion and $42.8 billion, respectively, to
termination of the servicing rights and the loss of future servicing fees. re-securitization entities.
These transactions create intangible assets referred to as MSRs, which are As of December 31, 2021, the fair value of Citi-retained interests in agency
recorded at fair value on Citi’s Consolidated Balance Sheet. The fair value of re-securitization transactions structured by Citi totaled approximately
Citi’s capitalized MSRs was $404 million and $336 million at December 31, $1.2 billion (including $641 million related to re-securitization transactions
2021 and 2020, respectively. The MSRs correspond to principal loan balances executed in 2021) compared to $1.6 billion as of December 31, 2020
of $47 billion and $53 billion as of December 31, 2021 and 2020, respectively. (including $916 million related to re-securitization transactions executed in
The following table summarizes the changes in capitalized MSRs: 2020), which is recorded in Trading account assets. The original fair values
of agency re-securitization transactions in which Citi holds a retained interest
In millions of dollars 2021 2020 as of December 31, 2021 and 2020 were approximately $78.4 billion and
Balance, beginning of year $ 336 $ 495 $83.6 billion, respectively.
Originations 92 123 As of December 31, 2021 and 2020, the Company did not consolidate any
Changes in fair value of MSRs due to changes in inputs and
assumptions 43 (204)
private label or agency re-securitization entities.
Other changes(1) (67) (78)
Citi-Administered Asset-Backed Commercial
Sales of MSRs — —
Paper Conduits
Balance, as of December 31 $ 404 $ 336 The Company is active in the asset-backed commercial paper conduit
(1) Represents changes due to customer payments and passage of time. business as administrator of several multi-seller commercial paper conduits
and also as a service provider to single-seller and other commercial paper
The fair value of the MSRs is primarily affected by changes in conduits sponsored by third parties.
prepayments of mortgages that result from shifts in mortgage interest rates. Citi’s multi-seller commercial paper conduits are designed to provide
Specifically, higher interest rates tend to lead to declining prepayments, the Company’s clients access to low-cost funding in the commercial paper
which causes the fair value of the MSRs to increase. In managing this risk, markets. The conduits purchase assets from or provide financing facilities to
Citigroup economically hedges a significant portion of the value of its MSRs clients and are funded by issuing commercial paper to third-party investors.
through the use of interest rate derivative contracts, forward purchase and The conduits generally do not purchase assets originated by Citi. The funding
sale commitments of mortgage-backed securities and purchased securities, of the conduits is facilitated by the liquidity support and credit enhancements
all classified as Trading account assets. provided by the Company.
The Company receives fees during the course of servicing previously As administrator to Citi’s conduits, the Company is generally responsible
securitized mortgages. The amounts of these fees were as follows: for selecting and structuring assets purchased or financed by the conduits,
making decisions regarding the funding of the conduits, including
In millions of dollars 2021 2020 2019 determining the tenor and other features of the commercial paper issued,
Servicing fees $131 $142 $148 monitoring the quality and performance of the conduits’ assets and
Late fees 3 5 8 facilitating the operations and cash flows of the conduits. In return, the
Ancillary fees — — 1
Company earns structuring fees from customers for individual transactions
Total MSR fees $134 $147 $157 and earns an administration fee from the conduit, which is equal to the
income from the client program and liquidity fees of the conduit after
In the Consolidated Statement of Income these fees are primarily classified payment of conduit expenses. This administration fee is fairly stable, since
as Commissions and fees, and changes in MSR fair values are classified as most risks and rewards of the underlying assets are passed back to the clients.
Other revenue. Once the asset pricing is negotiated, most ongoing income, costs and fees are
relatively stable as a percentage of the conduit’s size.
Re-securitizations The conduits administered by Citi do not generally invest in liquid
The Company engages in re-securitization transactions in which debt securities that are formally rated by third parties. The assets are privately
securities are transferred to a VIE in exchange for new beneficial interests. negotiated and structured transactions that are generally designed to be
Citi did not transfer non-agency (private label) securities to re-securitization held by the conduit, rather than actively traded and sold. The yield earned
entities during the years ended December 31, 2021 and 2020. These securities by the conduit on each asset is generally tied to the rate on the commercial
are backed by either residential or commercial mortgages and are often paper issued by the conduit, thus passing interest rate risk to the client.
structured on behalf of clients. Each asset purchased by the conduit is structured with transaction-specific

238
credit enhancement features provided by the third-party client seller, in the commercial paper and may from time to time fund commercial
including over-collateralization, cash and excess spread collateral accounts, paper pending sale to a third party. On specific dates with less liquidity
direct recourse or third-party guarantees. These credit enhancements are in the market, the Company may hold in inventory commercial paper
sized with the objective of approximating a credit rating of A or above, issued by conduits administered by the Company, as well as conduits
based on Citi’s internal risk ratings. At December 31, 2021 and 2020, administered by third parties. Separately, in the normal course of business,
the commercial paper conduits administered by Citi had approximately Citi purchases commercial paper, including commercial paper issued by
$14.0 billion and $16.7 billion of purchased assets outstanding, respectively, Citigroup’s conduits. At December 31, 2021 and 2020, the Company owned
and had incremental funding commitments with clients of approximately $4.9 billion and $6.6 billion, respectively, of the commercial paper issued by
$18.3 billion and $17.1 billion, respectively. its administered conduits. The Company’s investments were not driven by
Substantially all of the funding of the conduits is in the form of market illiquidity and the Company is not obligated under any agreement to
short-term commercial paper. At December 31, 2021 and 2020, the weighted purchase the commercial paper issued by the conduits.
average remaining lives of the commercial paper issued by the conduits were The asset-backed commercial paper conduits are consolidated by Citi.
approximately 70 and 54 days, respectively. The Company has determined that, through its roles as administrator
The primary credit enhancement provided to the conduit investors is in and liquidity provider, it has the power to direct the activities that most
the form of transaction-specific credit enhancements described above. Each significantly impact the entities’ economic performance. These powers
asset purchased by the conduit is structured with transaction-specific credit include its ability to structure and approve the assets purchased by the
enhancement features provided by the third-party client seller, including conduits, its ongoing surveillance and credit mitigation activities, its ability
over-collateralization, cash and excess spread collateral accounts, direct to sell or repurchase assets out of the conduits and its liability management.
recourse or third-party guarantees. These credit enhancements are sized In addition, as a result of all the Company’s involvement described above, it
with the objective of approximating a credit rating of A or above, based was concluded that Citi has an economic interest that could potentially be
on Citi’s internal risk ratings. In addition to the transaction-specific credit significant. However, the assets and liabilities of the conduits are separate and
enhancements, the conduits, other than the government- guaranteed loan apart from those of Citigroup. No assets of any conduit are available to satisfy
conduit, have obtained letters of credit from the Company, which equal at the creditors of Citigroup or any of its other subsidiaries.
least 8% to 10% of the conduit’s assets with a minimum of $200 million.
Collateralized Loan Obligations (CLOs)
The letters of credit provided by the Company to the conduits total
A collateralized loan obligation (CLO) is a VIE that purchases a portfolio
approximately $1.3 billion as of December 31, 2021 and $1.5 billion as of
of assets consisting primarily of non-investment grade corporate loans.
December 31, 2020. The net result across multi-seller conduits administered
CLOs issue multiple tranches of debt and equity to investors to fund the
by the Company is that, in the event that defaulted assets exceed the
asset purchases and pay upfront expenses associated with forming the
transaction-specific credit enhancements described above, any losses in
CLO. A third-party asset manager is contracted by the CLO to purchase
each conduit are allocated first to the Company and then to the commercial
the underlying assets from the open market and monitor the credit risk
paper investors.
associated with those assets. Over the term of a CLO, the asset manager directs
Citigroup also provides the conduits with two forms of liquidity
purchases and sales of assets in a manner consistent with the CLO’s asset
agreements that are used to provide funding to the conduits in the event
management agreement and indenture. In general, the CLO asset manager
of a market disruption, among other events. Each asset of the conduits is
will have the power to direct the activities of the entity that most significantly
supported by a transaction-specific liquidity facility in the form of an asset
impact the economic performance of the CLO. Investors in a CLO, through
purchase agreement (APA). Under the APA, the Company has generally
their ownership of debt and/or equity in it, can also direct certain activities of
agreed to purchase non-defaulted eligible receivables from the conduit at
the CLO, including removing its asset manager under limited circumstances,
par. The APA is not designed to provide credit support to the conduit, as it
optionally redeeming the notes, voting on amendments to the CLO’s
generally does not permit the purchase of defaulted or impaired assets. Any
operating documents and other activities. A CLO has a finite life, typically
funding under the APA will likely subject the underlying conduit clients to
12 years.
increased interest costs. In addition, the Company provides the conduits with
Citi serves as a structuring and placement agent with respect to the CLOs.
program-wide liquidity in the form of short-term lending commitments.
Typically, the debt and equity of the CLOs are sold to third-party investors.
Under these commitments, the Company has agreed to lend to the conduits
On occasion, certain Citi entities may purchase some portion of a CLO’s
in the event of a short-term disruption in the commercial paper market,
liabilities for investment purposes. In addition, Citi may purchase, typically
subject to specified conditions. The Company receives fees for providing
in the secondary market, certain securities issued by the CLOs to support its
both types of liquidity agreements and considers these fees to be on fair
market-making activities.
market terms.
The Company generally does not have the power to direct the activities
Finally, Citi is one of several named dealers in the commercial paper
that most significantly impact the economic performance of the CLOs, as this
issued by the conduits and earns a market-based fee for providing such
power is generally held by a third-party asset manager of the CLO. As such,
services. Along with third-party dealers, the Company makes a market
those CLOs are not consolidated.

239
 The following tables summarize selected cash flow information and Municipal Securities Tender Option Bond (TOB) Trusts
retained interests related to Citigroup CLOs: Municipal TOB trusts may hold fixed- or floating-rate, taxable or tax-
exempt securities issued by state and local governments and municipalities.
In billions of dollars 2021 2020 2019 TOB trusts are typically structured as single-issuer entities whose assets are
Principal securitized $— $0.1 $— purchased from either the Company or from other investors in the municipal
Proceeds from new securitizations — 0.1 — securities market. TOB trusts finance the purchase of their municipal assets
Cash flows received on retained interests by issuing two classes of certificates: long-dated, floating rate certificates
and other net cash flows 1.1 — — (“Floaters”) that are putable pursuant to a liquidity facility and residual
Purchases of previously transferred financial assets 0.2 — —
interest certificates (“Residuals”). The Floaters are purchased by third-
party investors, typically tax-exempt money market funds. The Residuals
Dec. 31, Dec. 31, Dec. 31, are purchased by the original owner of the municipal securities that are
In millions of dollars 2021 2020 2019 being financed.
Carrying value of retained interests $921 $1,611 $1,404 From Citigroup’s perspective, there are two types of TOB trusts: customer
and non-customer. Customer TOB trusts are those trusts utilized by
All of Citi’s retained interests were held-to-maturity securities as of customers of the Company to finance their securities, generally municipal
December 31, 2021 and 2020. securities. The Residuals issued by these trusts are purchased by the customer
being financed. Non-customer TOB trusts are generally used by the Company
Asset-Based Financing to finance its own municipal securities investments; the Residuals issued by
The Company provides loans and other forms of financing to VIEs that hold non-customer TOB trusts are purchased by the Company.
assets. Those loans are subject to the same credit approvals as all other loans With respect to both customer and non-customer TOB trusts, Citi may
originated or purchased by the Company. Financings in the form of debt provide remarketing agent services. If Floaters are optionally tendered and
securities or derivatives are, in most circumstances, reported in Trading the Company, in its role as remarketing agent, is unable to find a new
account assets and accounted for at fair value through earnings. The investor to purchase the optionally tendered Floaters within a specified
Company generally does not have the power to direct the activities that most period of time, Citigroup may, but is not obligated to, purchase the tendered
significantly impact these VIEs’ economic performance; thus, it does not Floaters into its own inventory. The level of the Company’s inventory of such
consolidate them. Floaters fluctuates.
The primary types of Citi’s asset-based financings, total assets of the For certain customer TOB trusts, Citi may also serve as a voluntary
unconsolidated VIEs with significant involvement and Citi’s maximum advance provider. In this capacity, the Company may, but is not obligated
exposure to loss are shown below. For Citi to realize the maximum loss, the to, make loan advances to customer TOB trusts to purchase optionally
VIE (borrower) would have to default with no recovery from the assets held tendered Floaters that have not otherwise been successfully remarketed to
by the VIE. new investors. Such loans are secured by pledged Floaters. As of December 31,
2021, Citi had no outstanding voluntary advances to customer TOB trusts.
December 31, 2021 For certain non-customer trusts, the Company also provides credit
Total Maximum enhancement. At December 31, 2021 and 2020, none of the municipal
unconsolidated exposure to bonds owned by non-customer TOB trusts were subject to a credit guarantee
In millions of dollars VIE assets unconsolidated VIEs
provided by the Company.
Type Citigroup also provides liquidity services to many customer and
Commercial and other real estate $ 32,932 $ 7,461 non-customer trusts. If a trust is unwound early due to an event other than
Corporate loans 18,257 12,581
Other (including investment a credit event on the underlying municipal bonds, the underlying municipal
funds, airlines and shipping) 184,358 25,528 bonds are sold out of the trust and bond sale proceeds are used to redeem the
Total $235,547 $45,570 outstanding trust certificates. If this results in a shortfall between the bond
sale proceeds and the redemption price of the tendered Floaters, the Company,
pursuant to the liquidity agreement, would be obligated to make a payment
December 31, 2020 to the trust to satisfy that shortfall. For certain customer TOB trusts, Citigroup
Total Maximum has also executed a reimbursement agreement with the holder of the Residual,
unconsolidated exposure to
pursuant to which the Residual holder is obligated to reimburse the Company
In millions of dollars VIE assets unconsolidated VIEs
for any payment the Company makes under the liquidity arrangement.
Type These reimbursement agreements may be subject to daily margining based
Commercial and other real estate $ 34,570 $ 7,758
Corporate loans 12,022 7,654 on changes in the market value of the underlying municipal bonds. In cases
Other (including investment where a third party provides liquidity to a non-customer TOB trust, a similar
funds, airlines and shipping) 167,613 20,442 reimbursement arrangement may be executed, whereby the Company (or a
Total $214,205 $35,854 consolidated subsidiary of the Company), as Residual holder, would absorb any
losses incurred by the liquidity provider.

240
 For certain other non-customer TOB trusts, Citi serves as tender option Client Intermediation
provider. The tender option provider arrangement allows Floater holders to Client intermediation transactions represent a range of transactions
put their interests directly to the Company at any time, subject to the requisite designed to provide investors with specified returns based on the returns
notice period requirements, at a price of par. of an underlying security, referenced asset or index. These transactions
At December 31, 2021 and 2020, liquidity agreements provided with include credit-linked notes and equity-linked notes. In these transactions,
respect to customer TOB trusts totaled $1.5 billion and $1.6 billion, the VIE typically obtains exposure to the underlying security, referenced
respectively, of which $0.6 billion and $0.8 billion, respectively, were offset asset or index through a derivative instrument, such as a total-return swap
by reimbursement agreements. For the remaining exposure related to TOB or a credit-default swap. In turn, the VIE issues notes to investors that pay a
transactions, where the residual owned by the customer was at least 25% return based on the specified underlying security, referenced asset or index.
of the bond value at the inception of the transaction, no reimbursement The VIE invests the proceeds in a financial asset or a guaranteed insurance
agreement was executed. contract that serves as collateral for the derivative contract over the term of
Citi considers both customer and non-customer TOB trusts to be VIEs. the transaction. The Company’s involvement in these transactions includes
Customer TOB trusts are not consolidated by the Company, as the power being the counterparty to the VIE’s derivative instruments and investing in a
to direct the activities that most significantly impact the trust’s economic portion of the notes issued by the VIE. In certain transactions, the investor’s
performance rests with the customer Residual holder, which may unilaterally maximum risk of loss is limited and the Company absorbs risk of loss above
cause the sale of the trust’s bonds. a specified level. Citi does not have the power to direct the activities of the
Non-customer TOB trusts generally are consolidated because the VIEs that most significantly impact their economic performance and thus it
Company holds the Residual interest and thus has the unilateral power to does not consolidate them.
cause the sale of the trust’s bonds. Citi’s maximum risk of loss in these transactions is defined as the amount
The Company also provides other liquidity agreements or letters of credit invested in notes issued by the VIE and the notional amount of any risk of
to customer-sponsored municipal investment funds, which are not variable loss absorbed by Citi through a separate instrument issued by the VIE. The
interest entities, and municipality-related issuers that totaled $2 billion as of derivative instrument held by the Company may generate a receivable from
December 31, 2021 and $3.6 billion as of December 31, 2020. These liquidity the VIE (e.g., where the Company purchases credit protection from the VIE
agreements and letters of credit are offset by reimbursement agreements with in connection with the VIE’s issuance of a credit-linked note), which is
various term-out provisions. collateralized by the assets owned by the VIE. These derivative instruments
are not considered variable interests and any associated receivables are not
Municipal Investments
included in the calculation of maximum exposure to the VIE.
Municipal investment transactions include debt and equity interests in
partnerships that finance the construction and rehabilitation of low-income Investment Funds
housing, facilitate lending in new or underserved markets or finance the The Company is the investment manager for certain investment funds and
construction or operation of renewable municipal energy facilities. Citi retirement funds that invest in various asset classes including private equity,
generally invests in these partnerships as a limited partner and earns a hedge funds, real estate, fixed income and infrastructure. Citigroup earns
return primarily through the receipt of tax credits and grants earned from a management fee, which is a percentage of capital under management,
the investments made by the partnership. The Company may also provide and may earn performance fees. In addition, for some of these funds the
construction loans or permanent loans for the development or operation Company has an ownership interest in the investment funds. Citi has also
of real estate properties held by partnerships. These entities are generally established a number of investment funds as opportunities for qualified
considered VIEs. The power to direct the activities of these entities is typically colleagues to invest in private equity investments. The Company acts as
held by the general partner. Accordingly, these entities are not consolidated investment manager for these funds and may provide colleagues with
by Citigroup. financing on both recourse and non-recourse bases for a portion of the
colleagues’ investment commitments.

241
22. DERIVATIVES Derivatives may expose Citigroup to market, credit or liquidity risks in
excess of the amounts recorded on the Consolidated Balance Sheet. Market
In the ordinary course of business, Citigroup enters into various types of
risk on a derivative product is the exposure created by potential fluctuations
derivative transactions, which include:
in interest rates, market prices, foreign exchange rates and other factors
• Futures and forward contracts, which are commitments to buy or and is a function of the type of product, the volume of transactions, the
sell at a future date a financial instrument, commodity or currency at a tenor and terms of the agreement and the underlying volatility. Credit risk
contracted price that may be settled in cash or through delivery of an item is the exposure to loss in the event of nonperformance by the other party to
readily convertible to cash. satisfy a derivative liability where the value of any collateral held by Citi is
• Swap contracts, which are commitments to settle in cash at a future date not adequate to cover such losses. The recognition in earnings of unrealized
or dates that may range from a few days to a number of years, based on gains on derivative transactions is subject to management’s assessment of the
differentials between specified indices or financial instruments, as applied probability of counterparty default. Liquidity risk is the potential exposure
to a notional principal amount. that arises when the size of a derivative position may affect the ability to
• Option contracts, which give the purchaser, for a premium, the right, monetize the position in a reasonable period of time and at a reasonable cost
but not the obligation, to buy or sell within a specified time a financial in periods of high volatility and financial stress.
instrument, commodity or currency at a contracted price that may also be Derivative transactions are customarily documented under industry
settled in cash, based on differentials between specified indices or prices. standard master netting agreements, which provide that following an event
of default, the non-defaulting party may promptly terminate all transactions
Swaps, forwards and some option contracts are over-the-counter (OTC) between the parties and determine the net amount due to be paid to, or by,
derivatives that are bilaterally negotiated with counterparties and settled with the defaulting party. Events of default include (i) failure to make a payment
those counterparties, except for swap contracts that are novated and “cleared” on a derivative transaction that remains uncured following applicable
through central counterparties (CCPs). Futures contracts and other option notice and grace periods, (ii) breach of agreement that remains uncured
contracts are standardized contracts that are traded on an exchange with after applicable notice and grace periods, (iii) breach of a representation,
a CCP as the counterparty from the inception of the transaction. Citigroup (iv) cross default, either to third-party debt or to other derivative transactions
enters into derivative contracts relating to interest rate, foreign currency, entered into between the parties, or, in some cases, their affiliates, (v) the
commodity and other market/credit risks for the following reasons: occurrence of a merger or consolidation that results in the creditworthiness
• Trading Purposes: Citigroup trades derivatives as an active market of a party becoming materially weaker and (vi) the cessation or repudiation
maker. Citigroup offers its customers derivatives in connection with their of any applicable guarantee or other credit support document. Obligations
risk management actions to transfer, modify or reduce their interest rate, under master netting agreements are often secured by collateral posted under
foreign exchange and other market/credit risks or for their own trading an industry standard credit support annex to the master netting agreement.
purposes. Citigroup also manages its derivative risk positions through An event of default may also occur under a credit support annex if a party
offsetting trade activities, controls focused on price verification and daily fails to make a collateral delivery that remains uncured following applicable
reporting of positions to senior managers. notice and grace periods.
The netting and collateral rights incorporated in the master netting
• Hedging: Citigroup uses derivatives in connection with its own risk agreements are considered to be legally enforceable if a supportive legal
management activities to hedge certain risks or reposition the risk profile
opinion has been obtained from counsel of recognized standing that provides
of the Company. Hedging may be accomplished by applying hedge
(i) the requisite level of certainty regarding enforceability and (ii) that the
accounting in accordance with ASC 815, Derivatives and Hedging, or by
exercise of rights by the non-defaulting party to terminate and close-out
an economic hedge. For example, Citigroup issues fixed-rate long-term
transactions on a net basis under these agreements will not be stayed or
debt and then enters into a receive-fixed, pay-variable-rate interest
avoided under applicable law upon an event of default, including bankruptcy,
rate swap with the same tenor and notional amount to synthetically
insolvency or similar proceeding.
convert the interest payments to a net variable-rate basis. This strategy
A legal opinion may not be sought for certain jurisdictions where local
is the most common form of an interest rate hedge, as it minimizes net
law is silent or unclear as to the enforceability of such rights or where adverse
interest cost in certain yield curve environments. Derivatives are also
case law or conflicting regulation may cast doubt on the enforceability
used to manage market risks inherent in specific groups of on-balance
of such rights. In some jurisdictions and for some counterparty types, the
sheet assets and liabilities, including AFS securities, commodities and
insolvency law may not provide the requisite level of certainty. For example,
borrowings, as well as other interest-sensitive assets and liabilities. In
this may be the case for certain sovereigns, municipalities, central banks and
addition, foreign exchange contracts are used to hedge non-U.S.-dollar-
U.S. pension plans.
denominated debt, foreign currency-denominated AFS securities and net
investment exposures.

242
 Exposure to credit risk on derivatives is affected by market volatility,
which may impair the ability of counterparties to satisfy their obligations
to the Company. Credit limits are established and closely monitored for
customers engaged in derivatives transactions. Citi considers the level of
legal certainty regarding enforceability of its offsetting rights under master
netting agreements and credit support annexes to be an important factor in
its risk management process. Specifically, Citi generally transacts much lower
volumes of derivatives under master netting agreements where Citi does not
have the requisite level of legal certainty regarding enforceability, because
such derivatives consume greater amounts of single counterparty credit
limits than those executed under enforceable master netting agreements.
Cash collateral and security collateral in the form of G10 government
debt securities are often posted by a party to a master netting agreement to
secure the net open exposure of the other party; the receiving party is free
to commingle/rehypothecate such collateral in the ordinary course of its
business. Nonstandard collateral such as corporate bonds, municipal bonds,
U.S. agency securities and/or MBS may also be pledged as collateral for
derivative transactions. Security collateral posted to open and maintain a
master netting agreement with a counterparty, in the form of cash and/or
securities, may from time to time be segregated in an account at a third-party
custodian pursuant to a tri-party account control agreement.

243
 Information pertaining to Citigroup’s derivatives activities, based on swap with $100 million notional, and offsets this risk with an identical but
notional amounts, is presented in the table below. Derivative notional opposite pay-fixed position with a different counterparty, $200 million in
amounts are reference amounts from which contractual payments are derivative notionals is reported, although these offsetting positions may result
derived and do not represent a complete measure of Citi’s exposure to in de minimis overall market risk.
derivative transactions. Citi’s derivative exposure arises primarily from In addition, aggregate derivative notional amounts can fluctuate from
market fluctuations (i.e., market risk), counterparty failure (i.e., credit period to period in the normal course of business based on Citi’s market
risk) and/or periods of high volatility or financial stress (i.e., liquidity share, levels of client activity and other factors. All derivatives are recorded
risk), as well as any market valuation adjustments that may be required on in Trading account assets/Trading account liabilities on the Consolidated
the transactions. Moreover, notional amounts do not reflect the netting of Balance Sheet.
offsetting trades. For example, if Citi enters into a receive-fixed interest rate

Derivative Notionals

Hedging instruments Trading derivative

under ASC 815 instruments
December 31, December 31, December 31, December 31,
In millions of dollars 2021 2020 2021 2020
Interest rate contracts
Swaps $267,035 $334,351 $21,873,538 $17,724,147
Futures and forwards — — 2,383,702 4,142,514
Written options — — 1,584,451 1,573,483
Purchased options — — 1,428,376 1,418,255
Total interest rate contracts $267,035 $334,351 $27,270,067 $24,858,399
Foreign exchange contracts
Swaps $ 47,298 $ 65,709 $ 6,288,193 $ 6,567,304
Futures, forwards and spot 50,926 37,080 4,316,242 3,945,391
Written options — 47 664,942 907,338
Purchased options — 53 651,958 900,626
Total foreign exchange contracts $ 98,224 $102,889 $11,921,335 $12,320,659
Equity contracts
Swaps $ — $ — $ 269,062 $ 274,098
Futures and forwards — — 71,363 67,025
Written options — — 492,433 441,003
Purchased options — — 398,129 328,202
Total equity contracts $ — $ — $ 1,230,987 $ 1,110,328
Commodity and other contracts
Swaps $ — $ — $ 91,962 $ 80,127
Futures and forwards 2,096 924 157,195 143,175
Written options — — 51,224 71,376
Purchased options — — 47,868 67,849
Total commodity and other contracts $ 2,096 $ 924 $ 348,249 $ 362,527
Credit derivatives (1)

Protection sold $ — $ — $ 572,486 $ 543,607

Protection purchased — — 645,996 612,770
Total credit derivatives $ — $ — $ 1,218,482 $ 1,156,377
Total derivative notionals $367,355 $438,164 $41,989,120 $39,808,290

(1) Credit derivatives are arrangements designed to allow one party (protection purchaser) to transfer the credit risk of a “reference asset” to another party (protection seller). These arrangements allow a protection seller
to assume the credit risk associated with the reference asset without directly purchasing that asset. The Company enters into credit derivative positions for purposes such as risk management, yield enhancement,
reduction of credit concentrations and diversification of overall risk.

244
 The following tables present the gross and net fair values of the
Company’s derivative transactions and the related offsetting amounts as of
December 31, 2021 and 2020. Gross positive fair values are offset against
gross negative fair values by counterparty, pursuant to enforceable master
netting agreements. Under ASC 815-10-45, payables and receivables in
respect of cash collateral received from or paid to a given counterparty
pursuant to a credit support annex are included in the offsetting amount
if a legal opinion supporting the enforceability of netting and collateral
rights has been obtained. GAAP does not permit similar offsetting for
security collateral.
In addition, the following tables reflect rules adopted by clearing
organizations that require or allow entities to treat certain derivative assets,
liabilities and the related variation margin as settlement of the related
derivative fair values for legal and accounting purposes, as opposed to
presenting gross derivative assets and liabilities that are subject to collateral,
whereby the counterparties would also record a related collateral payable
or receivable. As a result, the tables reflect a reduction of approximately
$340 billion and $280 billion as of December 31, 2021 and 2020, respectively,
of derivative assets and derivative liabilities that previously would have
been reported on a gross basis, but are now legally settled and not subject to
collateral. The tables also present amounts that are not permitted to be offset,
such as security collateral or cash collateral posted at third-party custodians,
but which would be eligible for offsetting to the extent that an event of
default has occurred and a legal opinion supporting enforceability of the
netting and collateral rights has been obtained.

245
Derivative Mark-to-Market (MTM) Receivables/Payables

Derivatives classified
in Trading account
In millions of dollars at December 31, 2021 assets/liabilities(1)(2)
Derivatives instruments designated as ASC 815 hedges Assets Liabilities
Over-the-counter $ 1,167 $ 6
Cleared 122 89
Interest rate contracts $ 1,289 $ 95
Over-the-counter $ 1,338 $ 1,472
Cleared 6 —
Foreign exchange contracts $ 1,344 $ 1,472
Total derivatives instruments designated as ASC 815 hedges $ 2,633 $ 1,567
Derivatives instruments not designated as ASC 815 hedges
Over-the-counter $ 152,524 $ 138,114
Cleared 11,579 11,821
Exchange traded 96 44
Interest rate contracts $ 164,199 $ 149,979
Over-the-counter $ 133,357 $ 133,548
Cleared 848 278
Foreign exchange contracts $ 134,205 $ 133,826
Over-the-counter $ 23,452 $ 28,352
Cleared 19 —
Exchange traded 21,781 21,332
Equity contracts $ 45,252 $ 49,684
Over-the-counter $ 29,279 $ 29,833
Exchange traded 1,065 1,546
Commodity and other contracts $ 30,344 $ 31,379
Over-the-counter $ 6,896 $ 6,959
Cleared 3,322 4,056
Credit derivatives $ 10,218 $ 11,015
Total derivatives instruments not designated as ASC 815 hedges $ 384,218 $ 375,883
Total derivatives $ 386,851 $ 377,450
Less: Netting agreements (3)
$(292,628) $(292,628)
Less: Netting cash collateral received/paid(4) (24,447) (29,306)
Net receivables/payables included on the Consolidated Balance Sheet(5) $ 69,776 $ 55,516
Additional amounts subject to an enforceable master netting agreement, but not offset on the Consolidated Balance Sheet
Less: Cash collateral received/paid $ (907) $ (538)
Less: Non-cash collateral received/paid (5,777) (13,607)
Total net receivables/payables(5) $ 63,092 $ 41,371

(1) The derivatives fair values are also presented in Note 24 to the Consolidated Financial Statements.
(2) Over-the-counter (OTC) derivatives are derivatives executed and settled bilaterally with counterparties without the use of an organized exchange or central clearing house. Cleared derivatives include derivatives
executed bilaterally with a counterparty in the OTC market, but then novated to a central clearing house, whereby the central clearing house becomes the counterparty to both of the original counterparties.
Exchange-traded derivatives include derivatives executed directly on an organized exchange that provides pre-trade price transparency.
(3) Represents the netting of balances with the same counterparty under enforceable netting agreements. Approximately $259 billion, $14 billion and $20 billion of the netting against trading account asset/liability
balances is attributable to each of the OTC, cleared and exchange-traded derivatives, respectively.
(4) Represents the netting of cash collateral paid and received by counterparties under enforceable credit support agreements. Substantially all netting of cash collateral received and paid is against OTC derivative assets
and liabilities, respectively.
(5) The net receivables/payables include approximately $10 billion of derivative asset and $11 billion of derivative liability fair values not subject to enforceable master netting agreements, respectively.

246
 Derivatives classified
in Trading account
In millions of dollars at December 31, 2020 assets/liabilities(1)(2)
Derivatives instruments designated as ASC 815 hedges Assets Liabilities
Over-the-counter $ 1,781 $ 161
Cleared 74 319
Interest rate contracts $ 1,855 $ 480
Over-the-counter $ 2,037 $ 2,042
Foreign exchange contracts $ 2,037 $ 2,042
Total derivatives instruments designated as ASC 815 hedges $ 3,892 $ 2,522
Derivatives instruments not designated as ASC 815 hedges
Over-the-counter $ 228,519 $ 209,330
Cleared 11,041 12,563
Exchange traded 46 38
Interest rate contracts $ 239,606 $ 221,931
Over-the-counter $ 153,791 $ 152,784
Cleared 842 1,239
Exchange traded — 1
Foreign exchange contracts $ 154,633 $ 154,024
Over-the-counter $ 29,244 $ 41,036
Cleared 1 18
Exchange traded 21,274 22,515
Equity contracts $ 50,519 $ 63,569
Over-the-counter $ 13,659 $ 17,076
Exchange traded 879 1,017
Commodity and other contracts $ 14,538 $ 18,093
Over-the-counter $ 7,826 $ 7,951
Cleared 1,963 2,178
Credit derivatives $ 9,789 $ 10,129
Total derivatives instruments not designated as ASC 815 hedges $ 469,085 $ 467,746
Total derivatives $ 472,977 $ 470,268
Less: Netting agreements (3)
$ (364,879) $ (364,879)
Less: Netting cash collateral received/paid(4) (31,137) (37,432)
Net receivables/payables included on the Consolidated Balance Sheet(5) $ 76,961 $ 67,957
Additional amounts subject to an enforceable master netting agreement, but not offset on the Consolidated Balance Sheet
Less: Cash collateral received/paid $ (1,567) $ (473)
Less: Non-cash collateral received/paid (7,408) (13,087)
Total net receivables/payables(5) $ 67,986 $ 54,397

(1) The derivatives fair values are also presented in Note 24 to the Consolidated Financial Statements.
(2) Over-the-counter (OTC) derivatives are derivatives executed and settled bilaterally with counterparties without the use of an organized exchange or central clearing house. Cleared derivatives include derivatives
executed bilaterally with a counterparty in the OTC market, but then novated to a central clearing house, whereby the central clearing house becomes the counterparty to both of the original counterparties.
Exchange-traded derivatives include derivatives executed directly on an organized exchange that provides pre-trade price transparency.
(3) Represents the netting of balances with the same counterparty under enforceable netting agreements. Approximately $336 billion, $9 billion and $20 billion of the netting against trading account asset/liability balances
is attributable to each of the OTC, cleared and exchange-traded derivatives, respectively.
(4) Represents the netting of cash collateral paid and received by counterparties under enforceable credit support agreements. Substantially all netting of cash collateral received and paid is against OTC derivative assets
and liabilities, respectively.
(5) The net receivables/payables include approximately $6 billion of derivative asset and $8 billion of derivative liability fair values not subject to enforceable master netting agreements, respectively.

247
 For the years ended December 31, 2021, 2020 and 2019, amounts relationships. The assessment of effectiveness may exclude changes in the
recognized in Principal transactions in the Consolidated Statement of value of the hedged item that are unrelated to the risks being hedged and
Income include certain derivatives not designated in a qualifying hedging the changes in fair value of the derivative associated with time value. Citi
relationship. Citigroup presents this disclosure by business classification, excludes changes in the cross-currency basis associated with cross-currency
showing derivative gains and losses related to its trading activities together swaps from the assessment of hedge effectiveness and records it in Other
with gains and losses related to non-derivative instruments within the same comprehensive income.
trading portfolios, as this represents how these portfolios are risk managed.
See Note 6 to the Consolidated Financial Statements for further information. Discontinued Hedge Accounting
The amounts recognized in Other revenue in the Consolidated Statement A hedging instrument must be highly effective in accomplishing the hedge
of Income related to derivatives not designated in a qualifying hedging objective of offsetting either changes in the fair value or cash flows of
relationship are shown below. The table below does not include any offsetting the hedged item for the risk being hedged. Management may voluntarily
gains (losses) on the economically hedged items to the extent that such de-designate an accounting hedge at any time, but if a hedging relationship
amounts are also recorded in Other revenue. is not highly effective, it no longer qualifies for hedge accounting and must
be de-designated. Subsequent changes in the fair value of the derivative are
Gains (losses) included in recognized in Other revenue or Principal transactions, similar to trading
Other revenue derivatives, with no offset recorded related to the hedged item.
Year ended December 31, For fair value hedges, any changes in the fair value of the hedged item
In millions of dollars 2021 2020 2019 remain as part of the basis of the asset or liability and are ultimately realized
Interest rate contracts $ (70) $ 63 $ 57 as an element of the yield on the item. For cash flow hedges, changes
Foreign exchange (102) (57) (29) in fair value of the end-user derivative remain in Accumulated other
Total $(172) $ 6 $ 28 comprehensive income (loss) (AOCI) and are included in the earnings
of future periods when the forecasted hedged cash flows impact earnings.
However, if it becomes probable that some or all of the hedged forecasted
Accounting for Derivative Hedging transactions will not occur, any amounts that remain in AOCI related to these
Citigroup accounts for its hedging activities in accordance with ASC 815, transactions must be immediately reflected in Other revenue.
Derivatives and Hedging. As a general rule, hedge accounting is permitted The foregoing criteria are applied on a decentralized basis, consistent with
where the Company is exposed to a particular risk, such as interest rate or the level at which market risk is managed, but are subject to various limits
foreign exchange risk, that causes changes in the fair value of an asset or and controls. The underlying asset, liability or forecasted transaction may be
liability or variability in the expected future cash flows of an existing asset, an individual item or a portfolio of similar items.
liability or a forecasted transaction that may affect earnings.
Derivative contracts hedging the risks associated with changes in fair
value are referred to as fair value hedges, while contracts hedging the
variability of expected future cash flows are cash flow hedges. Hedges that
utilize derivatives or debt instruments to manage the foreign exchange
risk associated with equity investments in non-U.S.-dollar-functional-
currency foreign subsidiaries (net investment in a foreign operation) are net
investment hedges.
To qualify as an accounting hedge under the hedge accounting rules
(versus an economic hedge where hedge accounting is not applied),
a hedging relationship must be highly effective in offsetting the risk
designated as being hedged. The hedging relationship must be formally
documented at inception, detailing the particular risk management
objective and strategy for the hedge. This includes the item and risk(s)
being hedged, the hedging instrument being used and how effectiveness will
be assessed. The effectiveness of these hedging relationships is evaluated
at hedge inception and on an ongoing basis both on a retrospective and
prospective basis, typically using quantitative measures of correlation, with
hedge ineffectiveness measured and recorded in current earnings. Hedge
effectiveness assessment methodologies are performed in a similar manner
for similar hedges, and are used consistently throughout the hedging

248
Fair Value Hedges Hedging of Foreign Exchange Risk
Citigroup hedges the change in fair value attributable to foreign exchange
Hedging of Benchmark Interest Rate Risk
rate movements in available-for-sale debt securities and long-term debt that
Citigroup’s fair value hedges are primarily hedges of fixed-rate long-term
are denominated in currencies other than the functional currency of the
debt or assets, such as available-for-sale debt securities or loans.
entity holding the securities or issuing the debt. The hedging instrument
For qualifying fair value hedges of interest rate risk, the changes in the
is generally a forward foreign exchange contract or a cross-currency swap
fair value of the derivative and the change in the fair value of the hedged
contract. Citigroup considers the premium associated with forward contracts
item attributable to the hedged risk are presented within Interest revenue or
(i.e., the differential between the spot and contractual forward rates) as
Interest expense based on whether the hedged item is an asset or a liability.
the cost of hedging; this amount is excluded from the assessment of hedge
Citigroup has executed a last-of-layer hedge, which permits an entity
effectiveness and is generally reflected directly in earnings over the life of
to hedge the interest rate risk of a stated portion of a closed portfolio of
the hedge. Citi also excludes changes in cross-currency basis associated with
prepayable financial assets that are expected to remain outstanding for
cross-currency swaps from the assessment of hedge effectiveness and records
the designated tenor of the hedge. In accordance with ASC 815, an entity
it in Other comprehensive income.
may exclude prepayment risk when measuring the change in fair value
of the hedged item attributable to interest rate risk under the last-of-layer Hedging of Commodity Price Risk
approach. Similar to other fair value hedges, where the hedged item is an Citigroup hedges the change in fair value attributable to spot price
asset, the fair value of the hedged item attributable to interest rate risk will be movements in physical commodities inventories. The hedging instrument
presented in Interest revenue along with the change in the fair value of the is a futures contract to sell the underlying commodity. In this hedge, the
hedging instrument. change in the value of the hedged inventory is reflected in earnings, which
offsets the change in the fair value of the futures contract that is also reflected
in earnings. Although the change in the fair value of the hedging instrument
recorded in earnings includes changes in forward rates, Citigroup excludes
the differential between the spot and the contractual forward rates under
the futures contract from the assessment of hedge effectiveness, and it is
generally reflected directly in earnings over the life of the hedge. Citi also
excludes changes in forward rates from the assessment of hedge effectiveness
and records it in Other comprehensive income.

249
The following table summarizes the gains (losses) on the Company’s fair value hedges:

Gains (losses) on fair value hedges(1)

Year ended December 31,
2021 2020 2019
Net Net Net
Other interest Other interest Other interest
In millions of dollars revenue income revenue income revenue income
Gain (loss) on the hedging derivatives included in assessment of the
effectiveness of fair value hedges
Interest rate hedges $ — $(5,425) $ — $ 4,189 $ — $ 2,273
Foreign exchange hedges (627) — 1,442 — 337 —
Commodity hedges (3,983) — (164) — (33) —
Total gain (loss) on the hedging derivatives included in assessment of the
effectiveness of fair value hedges $(4,610) $(5,425) $ 1,278 $ 4,189 $ 304 $ 2,273
Gain (loss) on the hedged item in designated and qualifying fair value hedges
Interest rate hedges $ — $ 5,043 $ — $ (4,537) $ — $ (2,085)
Foreign exchange hedges 628 — (1,442) — (337) —
Commodity hedges 3,973 — 164 — 33 —
Total gain (loss) on the hedged item in designated and qualifying fair
value hedges $ 4,601 $ 5,043 $ (1,278) $ (4,537) $ (304) $ (2,085)
Net gain (loss) on the hedging derivatives excluded from assessment of the
effectiveness of fair value hedges
Interest rate hedges $ — $ (9) $ — $ (23) $ — $ 3
Foreign exchange hedges(2) 79 — (73) — (109) —
Commodity hedges 5 — 131 — 41 —
Total net gain (loss) on the hedging derivatives excluded from assessment of
the effectiveness of fair value hedges $ 84 $ (9) $ 58 $ (23) $ (68) $ 3

(1) Gain (loss) amounts for interest rate risk hedges are included in Interest revenue/Interest expense. The accrued interest income on fair value hedges is recorded in Net interest income and is excluded from this table.
(2) Amounts relate to the premium associated with forward contracts (differential between spot and contractual forward rates) that are excluded from the assessment of hedge effectiveness and are generally reflected
directly in earnings. Amounts related to cross-currency basis, which are recognized in AOCI, are not reflected in the table above. The amount of cross-currency basis included in AOCI was $2 million and $(23) million
for the years ended December 31, 2021 and 2020, respectively.

250
Cumulative Basis Adjustment
Upon electing to apply ASC 815 fair value hedge accounting, the carrying
value of the hedged item is adjusted to reflect the cumulative changes in
the hedged risk. This cumulative hedge basis adjustment becomes part of
the carrying value of the hedged item until the hedged item is derecognized
from the balance sheet. The table below presents the carrying amount
of Citi’s hedged assets and liabilities under qualifying fair value hedges
at December 31, 2021 and 2020, along with the cumulative hedge basis
adjustments included in the carrying value of those hedged assets and
liabilities, that would reverse through earnings in future periods.

In millions of dollars

Cumulative fair value

Carrying hedging adjustment
Balance sheet line item amount of increasing (decreasing)
in which hedged item hedged asset/ the carrying amount
is recorded liability Active De-designated
As of December 31, 2021
Debt securities AFS(1)(3) $ 62,733 $ 149 $ 212
Long-term debt 149,305 623 3,936
As of December 31, 2020
Debt securities AFS(2)(3) $ 81,082 $ 28 $ 342
Long-term debt 169,026 5,554 4,989

(1) These amounts include a cumulative basis adjustment of $24 million for active hedges and
$(92) million for de-designated hedges as of December 31, 2021, related to certain prepayable
financial assets previously designated as the hedged item in a fair value hedge using the last-of-layer
approach. The Company designated approximately $6 billion as the hedged amount (from a closed
portfolio of prepayable financial assets with a carrying value of $25 billion as of December 31, 2021)
in a last-of-layer hedging relationship.
(2) These amounts include a cumulative basis adjustment of $(18) million for active hedges and $62
million for de-designated hedges as of December 31, 2020, related to certain prepayable financial
assets previously designated as the hedged item in a fair value hedge using the last-of-layer
approach. The Company designated approximately $3 billion as the hedged amount (from a closed
portfolio of prepayable financial assets with a carrying value of $19 billion as of December 31, 2020)
in a last-of-layer hedging relationship.
(3) Carrying amount represents the amortized cost.

251
Cash Flow Hedges relationships use either regression analysis or dollar-offset ratio analysis to
Citigroup hedges the variability of forecasted cash flows due to changes in assess whether the hedging relationships are highly effective at inception and
contractually specified interest rates associated with floating-rate assets/ on an ongoing basis.
liabilities and other forecasted transactions. Variable cash flows from those Citigroup hedges the variability from changes in a contractually specified
liabilities are synthetically converted to fixed-rate cash flows by entering into rate and recognizes the entire change in fair value of the cash flow hedging
receive-variable, pay-fixed interest rate swaps and receive-variable, pay-fixed instruments in AOCI. The full change in the value of the hedging instrument
forward-starting interest rate swaps. Variable cash flows associated with is required to be recognized in AOCI, and then recognized in earnings in the
certain assets are synthetically converted to fixed-rate cash flows by entering same period that the cash flows impact earnings. The pretax change in AOCI
into receive-fixed, pay-variable interest rate swaps. These cash flow hedging from cash flow hedges is presented below:

In millions of dollars 2021 2020 2019

Amount of gain (loss) recognized in AOCI on derivatives
Interest rate contracts $ (847) $2,670 $ 746
Foreign exchange contracts (51) (15) (17)
Total gain (loss) recognized in AOCI $ (898) $2,655 $ 729
Net Net Net
Other interest Other interest Other interest
revenue income revenue income revenue income
Amount of gain (loss) reclassified from AOCI to earnings(1)
Interest rate contracts $— $ 1,075 $— $ 734 $— $ (384)
Foreign exchange contracts (4) — (4) — (7) —
Total gain (loss) reclassified from AOCI into earnings $ (4) $ 1,075 $ (4) $ 734 $ (7) $ (384)
Net pretax change in cash flow hedges included within AOCI $(1,969) $1,925 $1,120

(1) All amounts reclassified into earnings for interest rate contracts are included in Interest revenue/Interest expense (Net interest income). For all other hedges, the amounts reclassified to earnings are included primarily
in Other revenue and Net interest income in the Consolidated Statement of Income.

For cash flow hedges, the entire change in the fair value of the hedging
derivative is recognized in AOCI and then reclassified to earnings in the same
period that the forecasted hedged cash flows impact earnings. The net gain
(loss) associated with cash flow hedges expected to be reclassified from AOCI
within 12 months of December 31, 2021 is approximately $614 million. The
maximum length of time over which forecasted cash flows are hedged is
10 years.
The after-tax impact of cash flow hedges on AOCI is shown in Note 19 to
the Consolidated Financial Statements.

252
Net Investment Hedges Citigroup may alternatively elect to account for the debt at fair value
Consistent with ASC 830-20, Foreign Currency Matters—Foreign under the fair value option. Once the irrevocable election is made upon
Currency Transactions, ASC 815 allows the hedging of the foreign currency issuance of the debt, the full change in fair value of the debt is reported in
risk of a net investment in a foreign operation. Citigroup uses foreign earnings. The changes in fair value of the related interest rate swap are also
currency forwards, cross-currency swaps, options and foreign currency- reflected in earnings, which provides a natural offset to the debt’s fair value
denominated debt instruments to manage the foreign exchange risk change. To the extent that the two amounts differ because the full change in
associated with Citigroup’s equity investments in several non-U.S.-dollar- the fair value of the debt includes risks not offset by the interest rate swap, the
functional-currency foreign subsidiaries. Citigroup records the change in difference is automatically captured in current earnings.
the carrying amount of these investments in Foreign currency translation Additional economic hedges include hedges of the credit risk component
adjustment within AOCI. Simultaneously, the effective portion of the of commercial loans and loan commitments. Citigroup periodically evaluates
hedge of this exposure is also recorded in Foreign currency translation its hedging strategies in other areas and may designate either an accounting
adjustment and any ineffective portion is immediately recorded in earnings. hedge or an economic hedge after considering the relative costs and benefits.
For derivatives designated as net investment hedges, Citigroup follows the Economic hedges are also employed when the hedged item itself is marked
forward-rate method outlined in ASC 815-35-35. According to that method, to market through current earnings, such as hedges of commitments to
all changes in fair value, including changes related to the forward-rate originate one- to four-family mortgage loans to be HFS and MSRs.
component of the foreign currency forward contracts and the time value
of foreign currency options, are recorded in Foreign currency translation Credit Derivatives
adjustment within AOCI. Citi is a market maker and trades a range of credit derivatives. Through these
For foreign currency-denominated debt instruments that are designated contracts, Citi either purchases or writes protection on either a single name
as hedges of net investments, the translation gain or loss that is recorded in or a portfolio of reference credits. Citi also uses credit derivatives to help
Foreign currency translation adjustment is based on the spot exchange mitigate credit risk in its corporate and consumer loan portfolios and other
rate between the functional currency of the respective subsidiary and the cash positions and to facilitate client transactions.
U.S. dollar, which is the functional currency of Citigroup. To the extent that Citi monitors its counterparty credit risk in credit derivative contracts. As
the notional amount of the hedging instrument exactly matches the hedged of December 31, 2021 and 2020, approximately 99% and 97%, respectively,
net investment, and the underlying exchange rate of the derivative hedging of the gross receivables are from counterparties with which Citi maintains
instrument relates to the exchange rate between the functional currency of master netting agreements, collateral agreements or settles daily. A majority
the net investment and Citigroup’s functional currency (or, in the case of of Citi’s top 15 counterparties (by receivable balance owed to Citi) are central
a non-derivative debt instrument, such instrument is denominated in the clearing houses, banks, financial institutions or other dealers. Contracts
functional currency of the net investment), no ineffectiveness is recorded with these counterparties do not include ratings-based termination events.
in earnings. However, counterparty ratings downgrades may have an incremental effect by
The pretax gain (loss) recorded in Foreign currency translation lowering the threshold at which Citi may call for additional collateral.
adjustment within AOCI, related to net investment hedges, was $855 million, The range of credit derivatives entered into includes credit default swaps,
$(600) million and $(569) million for the years ended December 31, 2021, total return swaps, credit options and credit-linked notes.
2020 and 2019, respectively. A credit default swap is a contract in which, for a fee, a protection seller
agrees to reimburse a protection buyer for any losses that occur due to a
Economic Hedges predefined credit event on a reference entity. These credit events are defined
Citigroup often uses economic hedges when hedge accounting would be by the terms of the derivative contract and the reference entity and are
too complex or operationally burdensome. End-user derivatives that are generally limited to the market standard of failure to pay on indebtedness
economic hedges are carried at fair value, with changes in value included in and bankruptcy of the reference entity and, in a more limited range of
either Principal transactions or Other revenue. transactions, debt restructuring. Credit derivative transactions that reference
For asset/liability management hedging, fixed-rate long-term debt is emerging market entities also typically include additional credit events
recorded at amortized cost under GAAP. to cover the acceleration of indebtedness and the risk of repudiation or a
For other hedges that either do not meet the ASC 815 hedging criteria or payment moratorium. In certain transactions, protection may be provided
for which management decides not to apply ASC 815 hedge accounting, the on a portfolio of reference entities or asset-backed securities. If there is no
derivative is recorded at fair value on the balance sheet with the associated credit event, as defined by the specific derivative contract, then the protection
changes in fair value recorded in earnings, while the debt continues to be seller makes no payments to the protection buyer and receives only the
carried at amortized cost. Therefore, current earnings are affected by the contractually specified fee. However, if a credit event occurs as defined in the
interest rate shifts and other factors that cause a change in the swap’s value, specific derivative contract sold, the protection seller will be required to make
but for which no offsetting change in value is recorded on the debt. a payment to the protection buyer. Under certain contracts, the seller of

253
protection may not be required to make a payment until a specified amount A credit option is a credit derivative that allows investors to trade or hedge
of losses has occurred with respect to the portfolio and/or may only be changes in the credit quality of a reference entity. For example, in a credit
required to pay for losses up to a specified amount. spread option, the option writer assumes the obligation to purchase or sell
A total return swap typically transfers the total economic performance of credit protection on the reference entity at a specified “strike” spread level.
a reference asset, which includes all associated cash flows, as well as capital The option purchaser buys the right to sell credit default protection on the
appreciation or depreciation. The protection buyer receives a floating rate of reference entity to, or purchase it from, the option writer at the strike spread
interest and any depreciation on the reference asset from the protection seller level. The payments on credit spread options depend either on a particular
and, in return, the protection seller receives the cash flows associated with credit spread or the price of the underlying credit-sensitive asset or other
the reference asset plus any appreciation. Thus, according to the total return reference entity. The options usually terminate if a credit event occurs with
swap agreement, the protection seller will be obligated to make a payment respect to the underlying reference entity.
any time the floating interest rate payment plus any depreciation of the A credit-linked note is a form of credit derivative structured as a debt
reference asset exceeds the cash flows associated with the underlying asset. security with an embedded credit default swap. The purchaser of the note
A total return swap may terminate upon a default of the reference asset or a effectively provides credit protection to the issuer by agreeing to receive a
credit event with respect to the reference entity, subject to the provisions of return that could be negatively affected by credit events on the underlying
the related total return swap agreement between the protection seller and the reference entity. If the reference entity defaults, the note may be cash settled
protection buyer. or physically settled by delivery of a debt security of the reference entity. Thus,
the maximum amount of the note purchaser’s exposure is the amount paid
for the credit-linked note.

254
The following tables summarize the key characteristics of Citi’s credit derivatives portfolio by counterparty and derivative form:

Fair values Notionals

Protection Protection
In millions of dollars at December 31, 2021 Receivable(1) Payable(2) purchased sold
By industry of counterparty
Banks $ 2,375 $ 3,031 $108,415 $103,756
Broker-dealers 1,962 1,139 44,364 40,068
Non-financial 113 306 2,785 2,728
Insurance and other financial institutions 5,768 6,539 490,432 425,934
Total by industry of counterparty $10,218 $11,015 $645,996 $572,486
By instrument
Credit default swaps and options $ 9,923 $10,234 $628,136 $565,131
Total return swaps and other 295 781 17,860 7,355
Total by instrument $10,218 $11,015 $645,996 $572,486
By rating of reference entity
Investment grade $ 4,149 $ 4,258 $511,652 $448,944
Non-investment grade 6,069 6,757 134,344 123,542
Total by rating of reference entity $10,218 $11,015 $645,996 $572,486
By maturity
Within 1 year $ 878 $ 1,462 $133,866 $115,603
From 1 to 5 years 6,674 6,638 454,617 413,174
After 5 years 2,666 2,915 57,513 43,709
Total by maturity $10,218 $11,015 $645,996 $572,486

(1) The fair value amount receivable is composed of $3,705 million under protection purchased and $6,513 million under protection sold.
(2) The fair value amount payable is composed of $7,354 million under protection purchased and $3,661 million under protection sold.

Fair values Notionals

Protection Protection
In millions of dollars at December 31, 2020 Receivable(1) Payable(2) purchased sold
By industry of counterparty
Banks $ 2,902 $ 3,187 $117,685 $120,739
Broker-dealers 1,770 1,215 46,928 44,692
Non-financial 109 90 5,740 2,217
Insurance and other financial institutions 5,008 5,637 442,417 375,959
Total by industry of counterparty $ 9,789 $10,129 $612,770 $543,607
By instrument
Credit default swaps and options $ 9,254 $ 9,254 $599,633 $538,426
Total return swaps and other 535 875 13,137 5,181
Total by instrument $ 9,789 $10,129 $612,770 $543,607
By rating of reference entity
Investment grade $ 4,136 $ 4,037 $478,643 $418,147
Non-investment grade 5,653 6,092 134,127 125,460
Total by rating of reference entity $ 9,789 $10,129 $612,770 $543,607
By maturity
Within 1 year $ 914 $ 1,355 $134,080 $125,464
From 1 to 5 years 6,022 5,991 421,682 374,376
After 5 years 2,853 2,783 57,008 43,767
Total by maturity $ 9,789 $10,129 $612,770 $543,607

(1) The fair value amount receivable is composed of $3,514 million under protection purchased and $6,275 million under protection sold.
(2) The fair value amount payable is composed of $7,037 million under protection purchased and $3,092 million under protection sold.

255
 Fair values included in the above tables are prior to application of any Credit Risk-Related Contingent Features in Derivatives
netting agreements and cash collateral. For notional amounts, Citi generally Certain derivative instruments contain provisions that require the Company
has a mismatch between the total notional amounts of protection purchased to either post additional collateral or immediately settle any outstanding
and sold, and it may hold the reference assets directly rather than entering liability balances upon the occurrence of a specified event related to the
into offsetting credit derivative contracts as and when desired. The open risk credit risk of the Company. These events, which are defined by the existing
exposures from credit derivative contracts are largely matched after certain derivative contracts, are primarily downgrades in the credit ratings of the
cash positions in reference assets are considered and after notional amounts Company and its affiliates.
are adjusted, either to a duration-based equivalent basis or to reflect the level The fair value (excluding CVA) of all derivative instruments with credit
of subordination in tranched structures. The ratings of the credit derivatives risk-related contingent features that were in a net liability position at
portfolio presented in the tables and used to evaluate payment/performance December 31, 2021 and 2020 was $19 billion and $25 billion, respectively.
risk are based on the assigned internal or external ratings of the reference The Company posted $16 billion and $22 billion as collateral for this
asset or entity. Where external ratings are used, investment-grade ratings are exposure in the normal course of business as of December 31, 2021 and
considered to be “Baa/BBB” and above, while anything below is considered 2020, respectively.
non-investment grade. Citi’s internal ratings are in line with the related A downgrade could trigger additional collateral or cash settlement
external rating system. requirements for the Company and certain affiliates. In the event that
Citigroup evaluates the payment/performance risk of the credit derivatives Citigroup and Citibank were downgraded a single notch by all three major
for which it stands as a protection seller based on the credit rating assigned rating agencies as of December 31, 2021, the Company could be required
to the underlying reference credit. Credit derivatives written on an underlying to post an additional $1.3 billion as either collateral or settlement of the
non-investment-grade reference entity represent greater payment risk to derivative transactions. In addition, the Company could be required to
the Company. The non-investment-grade category in the table above also segregate with third-party custodians collateral previously received from
includes credit derivatives where the underlying reference entity has been existing derivative counterparties in the amount of $0.1 billion upon
downgraded subsequent to the inception of the derivative. the single notch downgrade, resulting in aggregate cash obligations and
The maximum potential amount of future payments under credit collateral requirements of approximately $1.4 billion.
derivative contracts presented in the table above is based on the notional
value of the derivatives. The Company believes that the notional amount for Derivatives Accompanied by Financial Asset Transfers
credit protection sold is not representative of the actual loss exposure based The Company executes total return swaps that provide it with synthetic
on historical experience. This amount has not been reduced by the value exposure to substantially all of the economic return of the securities or other
of the reference assets and the related cash flows. In accordance with most financial assets referenced in the contract. In certain cases, the derivative
credit derivative contracts, should a credit event occur, the Company usually transaction is accompanied by the Company’s transfer of the referenced
is liable for the difference between the protection sold and the value of the financial asset to the derivative counterparty, most typically in response
reference assets. Furthermore, the notional amount for credit protection sold to the derivative counterparty’s desire to hedge, in whole or in part, its
has not been reduced for any cash collateral paid to a given counterparty, synthetic exposure under the derivative contract by holding the referenced
as such payments would be calculated after netting all derivative exposures, asset in funded form. In certain jurisdictions these transactions qualify as
including any credit derivatives with that counterparty in accordance sales, resulting in derecognition of the securities transferred (see Note 1 to
with a related master netting agreement. Due to such netting processes, the Consolidated Financial Statements for further discussion of the related
determining the amount of collateral that corresponds to credit derivative sale conditions for transfers of financial assets). For a significant portion of
exposures alone is not possible. The Company actively monitors open credit- the transactions, the Company has also executed another total return swap
risk exposures and manages this exposure by using a variety of strategies, where the Company passes on substantially all of the economic return of
including purchased credit derivatives, cash collateral or direct holdings the referenced securities to a different third party seeking the exposure. In
of the referenced assets. This risk mitigation activity is not captured in the those cases, the Company is not exposed, on a net basis, to changes in the
table above. economic return of the referenced securities.
These transactions generally involve the transfer of the Company’s
liquid government bonds, convertible bonds or publicly traded corporate
equity securities from the trading portfolio and are executed with third-
party financial institutions. The accompanying derivatives are typically
total return swaps. The derivatives are cash settled and subject to ongoing
margin requirements.

256
 When the conditions for sale accounting are met, the Company reports
the transfer of the referenced financial asset as a sale and separately reports
the accompanying derivative transaction. These transactions generally do
not result in a gain or loss on the sale of the security, because the transferred
security was held at fair value in the Company’s trading portfolio. For
transfers of financial assets accounted for as a sale by the Company, and for
which the Company has retained substantially all of the economic exposure
to the transferred asset through a total return swap executed with the same
counterparty in contemplation of the initial sale (and still outstanding), both
the asset amounts derecognized and the gross cash proceeds received as of the
date of derecognition were $2.9 billion and $2.0 billion as of December 31,
2021 and 2020, respectively.
At December 31, 2021, the fair value of these previously derecognized
assets was $2.9 billion. The fair value of the total return swaps as of
December 31, 2021 was $13 million recorded as gross derivative assets and
$58 million recorded as gross derivative liabilities. At December 31, 2020, the
fair value of these previously derecognized assets was $2.2 billion, and the fair
value of the total return swaps was $135 million recorded as gross derivative
assets and $7 million recorded as gross derivative liabilities.
The balances for the total return swaps are on a gross basis, before the
application of counterparty and cash collateral netting, and are included
primarily as equity derivatives in the tabular disclosures in this Note.

257
23. CONCENTRATIONS OF CREDIT RISK
Concentrations of credit risk exist when changes in economic, industry or
geographic factors similarly affect groups of counterparties whose aggregate
credit exposure is material in relation to Citigroup’s total credit exposure.
Although Citigroup’s portfolio of financial instruments is broadly diversified
along industry, product and geographic lines, material transactions are
completed with other financial institutions, particularly in the securities
trading, derivatives and foreign exchange businesses.
In connection with the Company’s efforts to maintain a diversified
portfolio, the Company limits its exposure to any one geographic region,
country or individual creditor and monitors this exposure on a continuous
basis. At December 31, 2021, Citigroup’s most significant concentration of
credit risk was with the U.S. government and its agencies. The Company’s
exposure, which primarily results from trading assets and investments
issued by the U.S. government and its agencies, amounted to $414.5 billion
and $370.1 billion at December 31, 2021 and 2020, respectively. The
German, United Kingdom and Japanese governments and their agencies,
which are rated investment grade by both Moody’s and S&P, were the next
largest exposures. The Company’s exposure to Germany amounted to
$48.9 billion and $51.8 billion at December 31, 2021 and 2020, respectively.
The Company’s exposure to the United Kingdom amounted to $31.1 billion
and $26.0 billion at December 31, 2021 and 2020, respectively. The
Company’s exposure to Japan amounted to $30.1 billion and $35.5 billion at
December 31, 2021 and 2020, respectively. The foreign government exposures
are composed of investment securities, loans and trading assets.
The Company’s exposure to states and municipalities amounted to
$22.0 billion and $26.1 billion at December 31, 2021 and 2020, respectively,
and was composed of trading assets, investment securities, derivatives and
lending activities.

258
24. FAIR VALUE MEASUREMENT Determination of Fair Value
For assets and liabilities carried at fair value, the Company measures
ASC 820-10, Fair Value Measurement, defines fair value, establishes a
fair value using the procedures set out below, irrespective of whether the
consistent framework for measuring fair value and requires disclosures about
assets and liabilities are measured at fair value as a result of an election, a
fair value measurements. Fair value is defined as the price that would be
non-recurring lower-of-cost-or-market (LOCOM) adjustment, or because
received to sell an asset or paid to transfer a liability in an orderly transaction
they are required to be measured at fair value.
between market participants at the measurement date, and therefore
When available, the Company uses quoted market prices from active
represents an exit price. Among other things, the standard requires the
markets to determine fair value and classifies such items as Level 1. In some
Company to maximize the use of observable inputs and minimize the use of
specific cases where a market price is available, the Company will apply
unobservable inputs when measuring fair value.
practical expedients (such as matrix pricing) to calculate fair value, in which
Under ASC 820-10, the probability of counterparty default is factored into
case the items may be classified as Level 2.
the valuation of derivative and other positions, and the impact of Citigroup’s
The Company may also apply a price-based methodology that utilizes,
own credit risk is also factored into the valuation of derivatives and other
where available, quoted prices or other market information obtained from
liabilities that are measured at fair value.
recent trading activity in positions with the same or similar characteristics
Fair Value Hierarchy to the position being valued. If relevant and observable prices are available,
ASC 820-10 specifies a hierarchy of inputs based on whether the inputs are those valuations may be classified as Level 2. However, when there are one
observable or unobservable. Observable inputs are developed using market or more significant unobservable “price” inputs, those valuations will be
data and reflect market participant assumptions, while unobservable inputs classified as Level 3. Furthermore, when a quoted price is considered stale, a
reflect the Company’s market assumptions. These two types of inputs have significant adjustment to the price of a similar security may be necessary to
created the following fair value hierarchy: reflect differences in the terms of the actual security or loan being valued, or
alternatively, when prices from independent sources may be insufficient to
• Level 1: Quoted prices for identical instruments in active markets. corroborate a valuation, the “price” inputs are considered unobservable and
• Level 2: Quoted prices for similar instruments in active markets, quoted the fair value measurements are classified as Level 3.
prices for identical or similar instruments in markets that are not If quoted market prices are not available, fair value is based upon
active and model-derived valuations in which all significant inputs and internally developed valuation techniques that use, where possible, current
significant value drivers are observable in the market. market-based parameters, such as interest rates, currency rates and
• Level 3: Valuations derived from valuation techniques in which one or option volatilities. Items valued using such internally generated valuation
more significant inputs or significant value drivers are unobservable. techniques are classified according to the lowest level input or value driver
that is significant to the valuation. Thus, an item may be classified as Level 3
As required under the fair value hierarchy, the Company considers
even though there may be some significant inputs that are readily observable.
relevant and observable market inputs in its valuations where possible.
Fair value estimates from internal valuation techniques are verified, where
The fair value hierarchy classification approach typically utilizes rules-
possible, to prices obtained from independent vendors or brokers. Vendors’
based and data driven selection criteria to determine whether an instrument
and brokers’ valuations may be based on a variety of inputs ranging from
is classified as Level 1, Level 2, or Level 3:
observed prices to proprietary valuation models, and the Company assesses
• The determination of whether an instrument is quoted in an active the quality and relevance of this information in determining the estimate
market and therefore considered a Level 1 instrument is based upon the of fair value. The following section describes the valuation methodologies
frequency of observed transactions and the quality of independent market used by the Company to measure various financial instruments at fair value.
data available on the measurement date. Where appropriate, the description includes details of the valuation models,
• A Level 2 classification is assigned where there is observability of prices / the key inputs to those models and any significant assumptions.
market inputs to models, or where any unobservable inputs are not
significant to the valuation. The determination of whether an input is Market Valuation Adjustments
considered observable is based on the availability of independent market Generally, the unit of account for a financial instrument is the individual
data and its corroboration, for example through observed transactions in financial instrument. The Company applies market valuation adjustments
the market. that are consistent with the unit of account, which does not include
adjustment due to the size of the Company’s position, except as follows.
• Otherwise, an instrument is classified as Level 3. ASC 820-10 permits an exception, through an accounting policy election,
to measure the fair value of a portfolio of financial assets and financial
liabilities on the basis of the net open risk position when certain criteria are
met. Citi has elected to measure certain portfolios of financial instruments
that meet those criteria, such as derivatives, on the basis of the net open risk
position. The Company applies market valuation adjustments, including
adjustments to account for the size of the net open risk position, consistent
with market participant assumptions.

259
 Valuation adjustments are applied to items classified as Level 2 or The CVA and FVA are designed to incorporate a market view of the credit
Level 3 in the fair value hierarchy to ensure that the fair value reflects the and funding risk, respectively, inherent in the derivative portfolio. However,
price at which the net open risk position could be exited. These valuation most unsecured derivative instruments are negotiated bilateral contracts
adjustments are based on the bid/offer spread for an instrument in the and are not commonly transferred to third parties. Derivative instruments
market. When Citi has elected to measure certain portfolios of financial are normally settled contractually or, if terminated early, are terminated at
investments, such as derivatives, on the basis of the net open risk position, the a value negotiated bilaterally between the counterparties. Thus, the CVA and
valuation adjustment may take into account the size of the position. FVA may not be realized upon a settlement or termination in the normal
Credit valuation adjustments (CVA) and funding valuation adjustments course of business. In addition, all or a portion of these adjustments may be
(FVA) are applied to the relevant population of over-the-counter (OTC) reversed or otherwise adjusted in future periods in the event of changes in the
derivative instruments where adjustments to reflect counterparty credit risk, credit or funding risk associated with the derivative instruments.
own credit risk and term funding risk are required to estimate fair value. This The table below summarizes the CVA and FVA applied to the fair value of
principally includes derivatives with a base valuation (e.g., discounted using derivative instruments at December 31, 2021 and 2020:
overnight indexed swap (OIS)) requiring adjustment for these effects, such
as uncollateralized interest rate swaps. The CVA represents a portfolio-level Credit and funding valuation
adjustment to reflect the risk premium associated with the counterparty’s adjustments
contra-liability (contra-asset)
(assets) or Citi’s (liabilities) non-performance risk.
December 31, December 31,
The FVA represents a market funding risk premium inherent in the In millions of dollars 2021 2020
uncollateralized portion of a derivative portfolio and in certain collateralized
Counterparty CVA $(705) $(800)
derivative portfolios that do not include standard credit support annexes Asset FVA (433) (525)
(CSAs), such as where the CSA does not permit the reuse of collateral Citigroup (own credit) CVA 379 403
received. Citi’s FVA methodology leverages the existing CVA methodology Liability FVA 110 67
to estimate a funding exposure profile. The calculation of this exposure Total CVA and FVA —derivative instruments $(649) $(855)
profile considers collateral agreements in which the terms do not permit the
Company to reuse the collateral received, including where counterparties
The table below summarizes pretax gains (losses) related to changes in
post collateral to third-party custodians. Citi’s CVA and FVA methodologies
CVA on derivative instruments, net of hedges, FVA on derivatives and debt
consist of two steps:
valuation adjustments (DVA) on Citi’s own fair value option (FVO) liabilities
• First, the exposure profile for each counterparty is determined using the for the years indicated:
terms of all individual derivative positions and a Monte Carlo simulation
or other quantitative analysis to generate a series of expected cash flows Credit/funding/debt valuation
at future points in time. The calculation of this exposure profile considers adjustments gain (loss)
In millions of dollars 2021 2020 2019
the effect of credit risk mitigants and sources of funding, including
pledged cash or other collateral and any legal right of offset that exists Counterparty CVA $ 79 $ (101) $ 149
Asset FVA 96 (95) 13
with a counterparty through arrangements such as netting agreements.
Own credit CVA (33) 133 (131)
Individual derivative contracts that are subject to an enforceable master Liability FVA (22) (6) (63)
netting agreement with a counterparty are aggregated as a netting set for
Total CVA and FVA —derivative instruments $ 120 $ (69) $ (32)
this purpose, since it is those aggregate net cash flows that are subject to
nonperformance risk. This process identifies specific, point-in-time future DVA related to own FVO liabilities(1) $ 296 $ (616) $(1,473)
cash flows that are subject to nonperformance and term funding risk, Total CVA, FVA and FVO DVA $ 416 $ (685) $(1,505)
rather than using the current recognized net asset or liability as a basis to (1) See Notes 1, 17 and 19 to the Consolidated Financial Statements.
measure the CVA and FVA.
• Second, for CVA, market-based views of default probabilities derived Securities Purchased Under Agreements to Resell and
from observed credit spreads in the credit default swap (CDS) market Securities Sold Under Agreements to Repurchase
are applied to the expected future cash flows determined in step one. No quoted prices exist for these instruments, since fair value is determined
Citi’s own credit CVA is determined using Citi-specific CDS spreads for using a discounted cash flow technique. Cash flows are estimated based
the relevant tenor. Generally, counterparty CVA is determined using CDS on the terms of the contract, taking into account any embedded derivative
spread indices for each credit rating and tenor. For certain identified or other features. These cash flows are discounted using interest rates
netting sets where individual analysis is practicable (e.g., exposures to appropriate to the maturity of the instrument as well as the nature of the
counterparties with liquid CDSs), counterparty-specific CDS spreads underlying collateral. Generally, when such instruments are recorded at fair
are used. For FVA, a term structure of spreads is applied to the expected value, they are classified within Level 2 of the fair value hierarchy, as the
funding exposures (e.g., the market liquidity spread used to represent the inputs used in the valuation are readily observable. However, certain long-
term funding premium associated with certain OTC derivatives). dated positions are classified within Level 3 of the fair value hierarchy.

260
Trading Account Assets and Liabilities—Trading Securities The key inputs depend upon the type of derivative and the nature of
and Trading Loans the underlying instrument and include interest rate yield curves, foreign
When available, the Company uses quoted market prices in active markets exchange rates, volatilities and correlation.
to determine the fair value of trading securities; such items are classified as
Level 1 of the fair value hierarchy. Examples include government securities Investments
and exchange-traded equity securities. The investments category includes available-for-sale debt and marketable
For bonds and secondary market loans traded over the counter, the equity securities whose fair values are generally determined by utilizing
Company generally determines fair value utilizing various valuation similar procedures described for trading securities above or, in some cases,
techniques, including discounted cash flows, price-based and internal using vendor pricing as the primary source.
models. Fair value estimates from these internal valuation techniques Also included in investments are nonpublic investments in private equity
are verified, where possible, to prices obtained from independent sources, and real estate entities. Determining the fair value of nonpublic securities
including third-party vendors. A price-based methodology utilizes, where involves a significant degree of management’s judgment, as no quoted
available, quoted prices or other market information obtained from recent prices exist and such securities are not generally traded. In addition, there
trading activity of assets with similar characteristics to the bond or loan being may be transfer restrictions on private equity securities. The Company’s
valued. The yields used in discounted cash flow models are derived from process for determining the fair value of such securities utilizes commonly
the same price information. Trading securities and loans priced using such accepted valuation techniques, including guideline public company analysis
methods are generally classified as Level 2. However, when the primary inputs and comparable transactions. In determining the fair value of nonpublic
to the valuation are unobservable, or prices from independent sources are securities, the Company also considers events such as a proposed sale of
insufficient to corroborate valuation, a loan or security is generally classified the investee company, initial public offerings, equity issuances or other
as Level 3. Fair value estimates from these internal valuation techniques observable transactions. Private equity securities are generally classified as
are verified, where possible, to prices obtained from independent sources, Level 3 of the fair value hierarchy.
including third-party vendors. In addition, the Company holds investments in certain alternative
When the Company’s principal exit market for a portfolio of loans is investment funds that calculate NAV per share, including hedge funds,
through securitization, the Company uses the securitization price as a key private equity funds and real estate funds. Investments in funds are generally
input into the fair value of the loan portfolio. The securitization price is classified as non-marketable equity securities carried at fair value. The fair
determined from the assumed proceeds of a hypothetical securitization values of these investments are estimated using the NAV per share of the
within the current market environment. Where such a price verification Company’s ownership interest in the funds where it is not probable that the
is possible, loan portfolios are typically classified as Level 2 in the fair investment will be realized at a price other than the NAV. Consistent with the
value hierarchy. provisions of ASU 2015-07, these investments are categorized within the fair
For most of the subprime mortgage backed security (MBS) exposures, value hierarchy and are not included in the tables below. See Note 13 to the
fair value is determined utilizing observable transactions where available, or Consolidated Financial Statements for additional information.
other valuation techniques such as discounted cash flow analysis utilizing Short-Term Borrowings and Long-Term Debt
valuation assumptions derived from similar, more observable securities as Where fair value accounting has been elected, the fair value of non-
market proxies. The valuation of certain asset-backed security (ABS) CDO structured liabilities is determined by utilizing internal models using the
positions is inferred through the net asset value of the underlying assets of the appropriate discount rate for the applicable maturity. Such instruments are
ABS CDO. classified as Level 2 of the fair value hierarchy when all significant inputs are
Trading Account Assets and Liabilities—Derivatives readily observable.
Exchange-traded derivatives, measured at fair value using quoted The Company determines the fair value of hybrid financial instruments,
(i.e., exchange) prices in active markets, where available, are classified as including structured liabilities, using the appropriate derivative valuation
Level 1 of the fair value hierarchy. methodology (described above in “Trading Account Assets and Liabilities—
Derivatives without a quoted price in an active market and derivatives Derivatives”) given the nature of the embedded risk profile. Such instruments
executed over the counter are valued using internal valuation techniques. are classified as Level 2 or Level 3 depending on the observability of
These derivative instruments are classified as either Level 2 or Level 3 significant inputs to the model.
depending on the observability of the significant inputs to the model.
The valuation techniques depend on the type of derivative and the
nature of the underlying instrument. The principal techniques used to value
these instruments are discounted cash flows and internal models, such as
derivative pricing models (e.g., Black-Scholes and Monte Carlo simulations).

261
Items Measured at Fair Value on a Recurring Basis positions that have been classified in the Level 3 category with other financial
The following tables present for each of the fair value hierarchy levels instruments (hedging instruments) that may be classified as Level 3, but also
the Company’s assets and liabilities that are measured at fair value on a with financial instruments classified as Level 1 or Level 2. The effects of these
recurring basis at December 31, 2021 and 2020. The Company may hedge hedges are presented gross in the following tables:

Fair Value Levels

Gross Net
In millions of dollars at December 31, 2021 Level 1 Level 2 Level 3 inventory Netting(1) balance
Assets
Securities borrowed and purchased under agreements to resell $ — $342,030 $ 231 $342,261 $(125,795) $216,466
Trading non-derivative assets
Trading mortgage-backed securities
U.S. government-sponsored agency guaranteed — 34,534 496 35,030 — 35,030
Residential 1 643 104 748 — 748
Commercial — 778 81 859 — 859
Total trading mortgage-backed securities $ 1 $ 35,955 $ 681 $ 36,637 $ — $ 36,637
U.S. Treasury and federal agency securities $ 44,900 $ 3,230 $ 4 $ 48,134 $ — $ 48,134
State and municipal — 1,995 37 2,032 — 2,032
Foreign government 39,176 31,485 23 70,684 — 70,684
Corporate 1,544 16,156 412 18,112 — 18,112
Equity securities 53,833 10,047 174 64,054 — 64,054
Asset-backed securities — 981 613 1,594 — 1,594
Other trading assets(2) — 20,346 576 20,922 — 20,922
Total trading non-derivative assets $139,454 $120,195 $ 2,520 $262,169 $ — $262,169
Trading derivatives
Interest rate contracts $ 90 $161,500 $ 3,898 $165,488
Foreign exchange contracts — 134,912 637 135,549
Equity contracts 41 43,904 1,307 45,252
Commodity contracts — 28,547 1,797 30,344
Credit derivatives — 9,299 919 10,218
Total trading derivatives—before netting and collateral $ 131 $378,162 $ 8,558 $386,851
Netting agreements $(292,628)
Netting of cash collateral received(3) (24,447)
Total trading derivatives—after netting and collateral $ 131 $378,162 $ 8,558 $386,851 $(317,075) $ 69,776
Investments
Mortgage-backed securities
U.S. government-sponsored agency guaranteed $ — $ 33,165 $ 51 $ 33,216 $ — $ 33,216
Residential — 286 94 380 — 380
Commercial — 25 — 25 — 25
Total investment mortgage-backed securities $ — $ 33,476 $ 145 $ 33,621 $ — $ 33,621
U.S. Treasury and federal agency securities $122,271 $ 168 $ 1 $122,440 $ — $122,440
State and municipal — 1,849 772 2,621 — 2,621
Foreign government 56,842 61,112 786 118,740 — 118,740
Corporate 2,861 2,871 188 5,920 — 5,920
Marketable equity securities 350 177 16 543 — 543
Asset-backed securities — 300 3 303 — 303
Other debt securities — 4,877 — 4,877 — 4,877
Non-marketable equity securities(4) — 28 316 344 — 344
Total investments $182,324 $104,858 $ 2,227 $289,409 $ — $289,409

Table continues on the next page.

262
 Gross Net
In millions of dollars at December 31, 2021 Level 1 Level 2 Level 3 inventory Netting(1) balance
Loans $ — $ 5,371 $ 711 $ 6,082 $ — $ 6,082
Mortgage servicing rights — — 404 404 — 404
Non-trading derivatives and other financial assets measured on a
recurring basis $ 4,075 $ 8,194 $ 73 $ 12,342 $ — $ 12,342
Total assets $325,984 $ 958,810 $ 14,724 $1,299,518 $ (442,870) $856,648
Total as a percentage of gross assets(5) 25.1% 73.8% 1.1%
Liabilities
Interest-bearing deposits $ — $ 1,483 $ 183 $ 1,666 $ — $ 1,666
Securities loaned and sold under agreements to repurchase — 174,318 643 174,961 (118,267) 56,694
Trading account liabilities
Securities sold, not yet purchased 82,675 23,268 65 106,008 — 106,008
Other trading liabilities — 5 — 5 — 5
Total trading liabilities $ 82,675 $ 23,273 $ 65 $ 106,013 $ — $106,013
Trading derivatives
Interest rate contracts $ 56 $ 147,846 $ 2,172 $ 150,074
Foreign exchange contracts — 134,572 726 135,298
Equity contracts 60 46,177 3,447 49,684
Commodity contracts — 30,004 1,375 31,379
Credit derivatives — 10,065 950 11,015
Total trading derivatives—before netting and collateral $ 116 $ 368,664 $ 8,670 $ 377,450
Netting agreements $ (292,628)
Netting of cash collateral paid(3) (29,306)
Total trading derivatives—after netting and collateral $ 116 $ 368,664 $ 8,670 $ 377,450 $ (321,934) $ 55,516
Short-term borrowings $ — $ 7,253 $ 105 $ 7,358 $ — $ 7,358
Long-term debt — 57,100 25,509 82,609 — 82,609
Total non-trading derivatives and other financial liabilities measured on a
recurring basis $ 3,574 $ — $ 1 $ 3,575 $ — $ 3,575
Total liabilities $ 86,365 $ 632,091 $ 35,176 $ 753,632 $ (440,201) $313,431
Total as a percentage of gross liabilities (5)
11.5% 83.9% 4.7%

(1) Represents netting of (i) the amounts due under securities purchased under agreements to resell and the amounts owed under securities sold under agreements to repurchase and (ii) derivative exposures covered by a
qualifying master netting agreement and cash collateral offsetting.
(2) Includes positions related to investments in unallocated precious metals, as discussed in Note 25 to the Consolidated Financial Statements. Also includes physical commodities accounted for at the lower of cost or fair
value and unfunded credit products.
(3) Represents the netting of cash collateral paid and received by counterparties under enforceable credit support agreements. Substantially all netting of cash collateral received and paid is against OTC derivative assets
and liabilities, respectively.
(4) Amounts exclude $0.1 billion of investments measured at net asset value (NAV) in accordance with ASU No. 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate
Net Asset Value per Share (or Its Equivalent).
(5) Because the amount of the cash collateral paid/received has not been allocated to the Level 1, 2 and 3 subtotals, these percentages are calculated based on total assets and liabilities measured at fair value on a
recurring basis, excluding the cash collateral paid/received on derivatives.

263
Fair Value Levels

Gross Net
In millions of dollars at December 31, 2020 Level 1 Level 2 Level 3 inventory Netting(1) balance
Assets
Securities borrowed and purchased under agreements to resell $ — $ 335,073 $ 320 $ 335,393 $(150,189) $185,204
Trading non-derivative assets
Trading mortgage-backed securities
U.S. government-sponsored agency guaranteed — 42,903 27 42,930 — 42,930
Residential — 391 340 731 — 731
Commercial — 893 136 1,029 — 1,029
Total trading mortgage-backed securities $ — $ 44,187 $ 503 $ 44,690 $ — $ 44,690
U.S. Treasury and federal agency securities $ 64,529 $ 2,269 $ — $ 66,798 $ — $ 66,798
State and municipal — 1,224 94 1,318 — 1,318
Foreign government 68,195 15,143 51 83,389 — 83,389
Corporate 1,607 18,840 375 20,822 — 20,822
Equity securities 54,117 12,289 73 66,479 — 66,479
Asset-backed securities — 776 1,606 2,382 — 2,382
Other trading assets(2) — 11,295 945 12,240 — 12,240
Total trading non-derivative assets $188,448 $ 106,023 $ 3,647 $ 298,118 $ — $298,118
Trading derivatives
Interest rate contracts $ 42 $ 238,026 $ 3,393 $ 241,461
Foreign exchange contracts 2 155,994 674 156,670
Equity contracts 66 48,362 2,091 50,519
Commodity contracts — 13,546 992 14,538
Credit derivatives — 8,634 1,155 9,789
Total trading derivatives—before netting and collateral $ 110 $ 464,562 $ 8,305 $ 472,977
Netting agreements $(364,879)
Netting of cash collateral received(3) (31,137)
Total trading derivatives—after netting and collateral $ 110 $ 464,562 $ 8,305 $ 472,977 $(396,016) $ 76,961
Investments
Mortgage-backed securities
U.S. government-sponsored agency guaranteed $ — $ 43,888 $ 30 $ 43,918 $ — $ 43,918
Residential — 571 — 571 — 571
Commercial — 50 — 50 — 50
Total investment mortgage-backed securities $ — $ 44,509 $ 30 $ 44,539 $ — $ 44,539
U.S. Treasury and federal agency securities $146,032 $ 172 $ — $ 146,204 $ — $146,204
State and municipal — 2,885 834 3,719 — 3,719
Foreign government 77,056 47,644 268 124,968 — 124,968
Corporate 6,326 4,114 60 10,500 — 10,500
Marketable equity securities 287 228 — 515 — 515
Asset-backed securities — 277 1 278 — 278
Other debt securities — 4,876 — 4,876 — 4,876
Non-marketable equity securities(4) — 50 349 399 — 399
Total investments $229,701 $ 104,755 $ 1,542 $ 335,998 $ — $335,998

Table continues on the next page.

264
 Gross Net
In millions of dollars at December 31, 2020 Level 1 Level 2 Level 3 inventory Netting(1) balance
Loans $ — $ 4,869 $ 1,985 $ 6,854 $ — $ 6,854
Mortgage servicing rights — — 336 336 — 336
Non-trading derivatives and other financial assets measured on a
recurring basis $ 6,230 $ 8,383 $ — $ 14,613 $ — $ 14,613
Total assets $424,489 $1,023,665 $ 16,135 $1,464,289 $(546,205) $918,084
Total as a percentage of gross assets(5) 29.0% 69.9% 1.1%
Liabilities
Interest-bearing deposits $ — $ 1,752 $ 206 $ 1,958 $ — $ 1,958
Securities loaned and sold under agreements to repurchase — 156,644 631 157,275 (97,069) 60,206
Trading account liabilities
Securities sold, not yet purchased 85,353 14,477 214 100,044 — 100,044
Other trading liabilities — — 26 26 — 26
Total trading account liabilities $ 85,353 $ 14,477 $ 240 $ 100,070 $ — $100,070
Trading derivatives
Interest rate contracts $ 25 $ 220,607 $ 1,779 $ 222,411
Foreign exchange contracts 3 155,441 622 156,066
Equity contracts 53 58,212 5,304 63,569
Commodity contracts — 17,393 700 18,093
Credit derivatives — 9,022 1,107 10,129
Total trading derivatives—before netting and collateral $ 81 $ 460,675 $ 9,512 $ 470,268
Netting agreements $(364,879)
Netting of cash collateral paid(3) (37,432)
Total trading derivatives—after netting and collateral $ 81 $ 460,675 $ 9,512 $ 470,268 $(402,311) $ 67,957
Short-term borrowings $ — $ 4,464 $ 219 $ 4,683 $ — $ 4,683
Long-term debt — 41,853 25,210 67,063 — 67,063
Non-trading derivatives and other financial liabilities measured on a
recurring basis $ 6,762 $ 72 $ 1 $ 6,835 $ — $ 6,835
Total liabilities $ 92,196 $ 679,937 $ 36,019 $ 808,152 $(499,380) $308,772
Total as a percentage of gross liabilities (5)
11.4% 84.1% 4.5%

(1) Represents netting of (i) the amounts due under securities purchased under agreements to resell and the amounts owed under securities sold under agreements to repurchase and (ii) derivative exposures covered by a
qualifying master netting agreement and cash collateral offsetting.
(2) Includes positions related to investments in unallocated precious metals, as discussed in Note 25 to the Consolidated Financial Statements. Also includes physical commodities accounted for at the lower of cost or fair
value and unfunded credit products.
(3) Represents the netting of cash collateral paid and received by counterparties under enforceable credit support agreements. Substantially all netting of cash collateral received and paid is against OTC derivative assets
and liabilities, respectively.
(4) Amounts exclude $0.2 billion of investments measured at NAV in accordance with ASU 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per
Share (or Its Equivalent).
(5) Because the amount of the cash collateral paid/received has not been allocated to the Level 1, 2 and 3 subtotals, these percentages are calculated based on total assets and liabilities measured at fair value on a
recurring basis, excluding the cash collateral paid/received on derivatives.

265
Changes in Level 3 Fair Value Category the effect of offsetting losses and gains on hedging instruments that may be
The following tables present the changes in the Level 3 fair value category for classified in the Level 1 and Level 2 categories. In addition, the Company
the years ended December 31, 2021 and 2020. The gains and losses presented hedges items classified in the Level 3 category with instruments also classified
below include changes in the fair value related to both observable and in Level 3 of the fair value hierarchy. The hedged items and related hedges
unobservable inputs. are presented gross in the following tables:
The Company often hedges positions with offsetting positions that are
classified in a different level. For example, the gains and losses for assets and
liabilities in the Level 3 category presented in the tables below do not reflect

Level 3 Fair Value Rollforward

Net realized/unrealized Unrealized

gains (losses) included in(1) Transfers gains
Dec. 31, Principal into out of Dec. 31, (losses)
In millions of dollars 2020 transactions Other(1)(2) Level 3 Level 3 Purchases Issuances Sales Settlements 2021 still held(3)
Assets
Securities borrowed
and purchased under
agreements to resell $ 320 $ (36) $ — $ 45 $ (49) $ 362 $ — $ — $ (411) $ 231 $ —
Trading non-derivative assets
Trading mortgage-backed
securities
U.S. government-sponsored
agency guaranteed 27 8 — 355 (131) 447 — (210) — 496 11
Residential 340 25 — 89 (96) 282 — (536) — 104 13
Commercial 136 23 — 96 (58) 62 — (178) — 81 —
Total trading mortgage-backed
securities $ 503 $ 56 $ — $ 540 $ (285) $ 791 $ — $ (924) $ — $ 681 $ 24
U.S. Treasury and federal
agency securities $ — $ — $ — $ 4 $ — $ — $ — $ — $ — $ 4 $ —
State and municipal 94 (4) — 20 (29) 17 — (61) — 37 (6)
Foreign government 51 29 — 143 (129) 83 — (154) — 23 (2)
Corporate 375 74 — 461 (384) 867 — (981) — 412 (38)
Equity securities 73 67 — 156 (52) 118 — (188) — 174 23
Asset-backed securities 1,606 371 — 173 (297) 1,313 — (2,553) — 613 (43)
Other trading assets 945 97 — 158 (457) 980 4 (1,147) (4) 576 (37)
Total trading non-derivative assets $ 3,647 $ 690 $ — $ 1,655 $(1,633) $4,169 $ 4 $(6,008) $ (4) $ 2,520 $ (79)
Trading derivatives, net (4)

Interest rate contracts $ 1,614 $ (376) $ — $ 102 $ 562 $ 27 $ (84) $ — $ (119) $ 1,726 $ 4
Foreign exchange contracts 52 (8) — (57) 104 220 — (326) (74) (89) 7
Equity contracts (3,213) 964 — (1,101) 1,923 364 — (364) (713) (2,140) (729)
Commodity contracts 292 474 — 174 (454) 162 — (238) 12 422 261
Credit derivatives 48 (136) — (96) 40 — — — 113 (31) (130)
Total trading derivatives, net(4) $ (1,207) $ 918 $ — $ (978) $ 2,175 $ 773 $ (84) $ (928) $ (781) $ (112) $ (587)

Table continues on the next page.

266
 Net realized/unrealized Unrealized
gains (losses) included in(1) Transfers gains
Dec. 31, Principal into out of Dec. 31, (losses)
In millions of dollars 2020 transactions Other(1)(2) Level 3 Level 3 Purchases Issuances Sales Settlements 2021 still held(3)
Investments
Mortgage-backed securities
U.S. government-sponsored
agency guaranteed $ 30 $ — $ 2 $ 42 $ (10) $ 3 $ — $ (16) $ — $ 51 $ 2
Residential — — — 54 (12) 52 — — — 94 (1)
Commercial — — — — — — — — — — —
Total investment mortgage-
backed securities $ 30 $ — $ 2 $ 96 $ (22) $ 55 $ — $ (16) $ — $ 145 $ 1
U.S. Treasury and federal agency
securities $ — $ — $ — $ 1 $ — $ — $ — $ — $ — $ 1 $ —
State and municipal 834 — (21) 58 (108) 49 — (40) — 772 (12)
Foreign government 268 — (49) 512 (565) 871 — (251) — 786 (2)
Corporate 60 — (14) 183 (44) 37 — (34) — 188 2
Marketable equity securities — — — 16 — — — — — 16 —
Asset-backed securities 1 — (21) 36 — — — (13) — 3 (2)
Other debt securities — — — — — — — — — — —
Non-marketable equity
securities 349 — (27) 2 — — — (8) — 316 (6)
Total investments $ 1,542 $ — $(130) $ 904 $ (739) $1,012 $ — $ (362) $ — $ 2,227 $ (19)
Loans $ 1,985 $ — $ 90 $ 311 $(2,071) $ — $ 529 $ — $ (133) $ 711 $ (77)
Mortgage servicing rights 336 — 43 — — — 92 — (67) 404 52
Other financial assets measured
on a recurring basis — — 6 65 (27) 58 — (26) (3) 73 —
Liabilities
Interest-bearing deposits $ 206 $ — $ (18) $ — $ (44) $ — $ 38 $ — $ (35) $ 183 $ (19)
Securities loaned and sold under
agreements to repurchase 631 (9) — 183 (483) 488 — — (185) 643 32
Trading account liabilities
Securities sold, not yet purchased 214 48 — 87 (34) 59 — — (213) 65 (4)
Other trading liabilities 26 26 — — — — — — — — —
Short-term borrowings 219 43 — 137 (57) — 49 — (200) 105 (2)
Long-term debt 25,210 2,774 — 8,611 (9,771) — 10,262 — (6,029) 25,509 1,756
Other financial liabilities measured
on a recurring basis 1 — (3) — (4) — 14 — (13) 1 —

(1) Net realized/unrealized gains (losses) are presented as increase (decrease) to Level 3 assets, and as (increase) decrease to Level 3 liabilities. Changes in fair value of available-for-sale debt securities are recorded in
AOCI, unless related to credit impairment, while gains and losses from sales are recorded in Realized gains (losses) from sales of investments in the Consolidated Statement of Income.
(2) Unrealized gains (losses) on MSRs are recorded in Other revenue in the Consolidated Statement of Income.
(3) Represents the amount of total gains or losses for the period, included in earnings (and AOCI for changes in fair value of available-for-sale debt securities and DVA on fair value option liabilities), attributable to the
change in fair value relating to assets and liabilities classified as Level 3 that are still held at December 31, 2021.
(4) Total Level 3 trading derivative assets and liabilities have been netted in these tables for presentation purposes only.

267
 Net realized/unrealized Unrealized
gains (losses) included in(1) Transfers gains
Dec. 31, Principal into out of Dec. 31, (losses)
In millions of dollars 2019 transactions Other(1)(2) Level 3 Level 3 Purchases Issuances Sales Settlements 2020 still held(3)
Assets
Securities borrowed and
purchased under
agreements to resell $ 303 $ 23 $ — $ — $ — $ 194 $ — $ — $ (200) $ 320 $ 43
Trading non-derivative assets
Trading mortgage-backed
securities
U.S. government-sponsored
agency guaranteed 10 (79) — 21 (11) 392 — (306) — 27 (1)
Residential 123 79 — 234 (68) 486 — (514) — 340 (20)
Commercial 61 — — 162 (35) 174 — (226) — 136 (14)
Total trading mortgage-backed
securities $ 194 $ — $ — $ 417 $ (114) $1,052 $ — $ (1,046) $ — $ 503 $ (35)
U.S. Treasury and federal agency
securities $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ —
State and municipal 64 2 — 33 (3) 62 — (64) — 94 4
Foreign government 52 (35) — 9 (1) 169 — (143) — 51 (7)
Corporate 313 246 — 211 (136) 770 — (1,023) (6) 375 (37)
Marketable equity securities 100 (16) — 43 (2) 240 — (292) — 73 (11)
Asset-backed securities 1,177 (105) — 677 (131) 1,406 — (1,418) — 1,606 (248)
Other trading assets 555 315 — 471 (343) 387 19 (440) (19) 945 (56)
Total trading non-derivative assets $ 2,455 $ 407 $ — $1,861 $ (730) $4,086 $ 19 $ (4,426) $ (25) $ 3,647 $ (390)
Trading derivatives, net (4)

Interest rate contracts $ 1 $ 429 $ — $1,644 $ 16 $ 41 $ 134 $ (34) $ (617) $ 1,614 $ 161
Foreign exchange contracts (5) 105 — (61) 48 74 — (55) (54) 52 130
Equity contracts (1,596) (536) — (519) 378 35 — (886) (89) (3,213) (3,868)
Commodity contracts (59) (1) — 99 (108) 101 — (61) 321 292 407
Credit derivatives (56) 123 — 173 (334) — — — 142 48 (136)
Total trading derivatives, net(4) $ (1,715) $ 120 $ — $1,336 $ — $ 251 $ 134 $ (1,036) $ (297) $ (1,207) $ (3,306)
Investments
Mortgage-backed securities
U.S. government-sponsored
agency guaranteed $ 32 $ — $ (5) $ 2 $ — $ 1 $ — $ — $ — $ 30 $ (104)
Residential — — 76 — — — — (76) — — 5
Commercial — — — — — — — — — — —
Total investment mortgage-
backed securities $ 32 $ — $ 71 $ 2 $ — $ 1 $ — $ (76) $ — $ 30 $ (99)
U.S. Treasury and federal
agency securities $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ —
State and municipal 623 — (3) 322 (131) 121 — (98) — 834 (20)
Foreign government 96 — 11 27 (64) 381 — (183) — 268 (4)
Corporate 45 — 6 49 (152) 162 — (50) — 60 —
Marketable equity securities — — (1) 1 — — — — — — —
Asset-backed securities 22 — (1) — — — — (20) — 1 (4)
Other debt securities — — — — — — — — — — —
Non-marketable equity
securities 441 — (35) — (2) 2 3 (3) (57) 349 10
Total investments $ 1,259 $ — $ 48 $ 401 $ (349) $ 667 $ 3 $ (430) $ (57) $ 1,542 $ (117)

Table continues on the next page.

268
 Net realized/unrealized Unrealized
gains (losses) included in(1) Transfers gains
Dec. 31, Principal into out of Dec. 31, (losses)
In millions of dollars 2019 transactions Other(1)(2) Level 3 Level 3 Purchases Issuances Sales Settlements 2020 still held(3)
Loans $ 402 $ — $ 1,143 $ 451 $ (6) $ — $ — $ — $ (5) $ 1,985 $ 1,424
Mortgage servicing rights 495 — (204) — — — 123 — (78) 336 (180)
Other financial assets measured
on a recurring basis 1 — — — — — — (1) — — —
Liabilities
Interest-bearing deposits $ 215 $ — $ 11 $ 278 $ (152) $ — $ 34 $ — $ (158) $ 206 $ (142)
Securities loaned and sold under
agreements to repurchase 757 5 — — — — — — (121) 631 (18)
Trading account liabilities
Securities sold, not yet purchased 48 (102) — 271 (17) — — 10 (200) 214 (163)
Other trading liabilities — 9 — 35 — — — — — 26 23
Short-term borrowings 13 78 — 220 (6) — 86 — (16) 219 (91)
Long-term debt 17,169 (1,489) — 6,553 (2,615) — 10,270 — (7,656) 25,210 (1,679)
Other financial liabilities measured
on a recurring basis — — — — — — 3 — (2) 1 —

(1) Net realized/unrealized gains (losses) are presented as increase (decrease) to Level 3 assets, and as (increase) decrease to Level 3 liabilities. Changes in fair value of available-for-sale debt securities are recorded in
AOCI, unless related to credit impairment, while gains and losses from sales are recorded in Realized gains (losses) from sales of investments in the Consolidated Statement of Income.
(2) Unrealized gains (losses) on MSRs are recorded in Other revenue in the Consolidated Statement of Income.
(3) Represents the amount of total gains or losses for the period, included in earnings (and AOCI for changes in fair value of available-for-sale debt securities and DVA on fair value option liabilities), attributable to the
change in fair value relating to assets and liabilities classified as Level 3 that are still held at December 31, 2020.
(4) Total Level 3 derivative assets and liabilities have been netted in these tables for presentation purposes only.

Level 3 Fair Value Rollforward The following were the significant Level 3 transfers for the period
The following were the significant Level 3 transfers for the period December 31, 2019 to December 31, 2020:
December 31, 2020 to December 31, 2021:
• During the 12 months ended December 31, 2020, transfers of Interest
• During the 12 months ended December 31, 2021, transfers of Loans rate contracts of $1.6 billion from Level 2 to Level 3 were due to interest
of $2.1 billion from Level 3 to Level 2 were primarily driven by equity rate option volatility becoming an unobservable and/or significant
forward and volatility inputs that have been assessed as not significant to input relative to the overall valuation of inflation and other interest
the overall valuation of certain hybrid loan instruments, including equity rate derivatives.
options and long dated equity call spreads. • During the 12 months ended December 31, 2020, $6.6 billion of Long-
• During the 12 months ended December 31, 2021, transfers of Equity term debt containing embedded derivatives was transferred from Level 2
contracts of $1.1 billion from Level 2 to Level 3 were due to equity forward to Level 3, as a result of interest rate option volatility, equity correlation
and volatility inputs becoming an unobservable and/or significant input and credit derivative inputs becoming unobservable and/or significant
relative to the overall valuation of equity options and equity swaps. In input relative to the overall valuation of certain structured long-term debt
other instances, market changes have resulted in observable equity products. In other instances, market changes resulted in unobservable
forward and volatility inputs becoming an insignificant input to the volatility inputs becoming insignificant to the overall valuation of the
overall valuation of the instrument (e.g., when an option becomes deep- instrument (e.g., when an option becomes deep-in or deep-out of the
in or deep-out of the money). This has resulted in $1.9 billion of certain money). This has resulted in $2.6 billion of certain structured long-term
Equity contracts being transferred from Level 3 to Level 2. debt products being transferred from Level 3 to Level 2 during the
• During the 12 months ended December 31, 2021, transfers of Long-term 12 months ended December 31, 2020.
debt were $8.6 billion from Level 2 to Level 3. Of the $8.6 billion transfer
in, approximately $7.2 billion related to interest rate option volatility
inputs becoming unobservable and/or significant relative to their overall
valuation, and $1.0 billion related to equity volatility inputs (in addition
to other volatility inputs, e.g., interest rate volatility inputs) becoming
unobservable and/or significant to their overall valuation. In other
instances, market changes have resulted in some inputs becoming more
observable, and some unobservable inputs becoming less significant to
the overall valuation of the instruments (e.g., when an option becomes
deep-in or deep-out of the money). This has resulted in $9.8 billion of
certain structured long-term debt products being transferred from Level 3
to Level 2 during the 12 months ended December 31, 2021.

269
Valuation Techniques and Inputs for Level 3 Fair The following tables present the valuation techniques covering the majority
Value Measurements of Level 3 inventory and the most significant unobservable inputs used in
The Company’s Level 3 inventory consists of both cash instruments and Level 3 fair value measurements. Differences between this table and amounts
derivatives of varying complexity. presented in the Level 3 Fair Value Rollforward table represent individually
immaterial items that have been measured using a variety of valuation
techniques other than those listed.

Fair value(1) Weighted

As of December 31, 2021 (in millions) Methodology Input Low(2)(3) High(2)(3) average(4)
Assets
Securities borrowed and purchased under
agreements to resell $ 231 Model-based Credit spread 15bps 15bps 15bps
Interest rate 0.26% 0.72% 0.50%
Mortgage-backed securities $ 279 Price-based Price $ 4 $ 118 $ 79
526 Yield analysis Yield 1.43% 23.79% 7.25%
State and municipal, foreign government,
corporate and other debt securities $ 2,264 Price-based Price $ — $ 995 $ 193
415 Model-based Equity volatility 0.08% 290.64% 53.94%
Marketable equity securities(5) $ 128 Price-based Price $ — $ 73,000 $ 6,477
43 Model-based WAL 1.73 years 1.73 years 1.73 years
Recovery (in millions) $ 7,148 $ 7,148 $ 7,148
Asset-backed securities $ 386 Price-based Price $ 5 $ 754 $ 87
208 Yield analysis Yield 2.43% 19.35% 8.18%
Non-marketable equities $ 121 Price-based Illiquidity discount 10.00% 36.00% 26.43%
112 Comparables analysis PE ratio 11.00x 29.00x 15.42x
83 Model-based Price $ 3 $ 2,601 $ 2,029
Adjustment factor 0.33x 0.44x 0.34x
Revenue multiple 19.80x 30.00x 20.48x
Cost of capital 17.50% 20.00% 17.57%
Derivatives—gross(6)
Interest rate contracts (gross) $ 6,054 Model-based IR normal volatility 0.24% 0.94% 0.70%
Foreign exchange contracts (gross) $ 1,364 Model-based IR Normal volatility 0.24% 0.74% 0.58%
FX volatility 2.13% 107.42% 11.21%
Credit spread 140bps 696bps 639bps
Equity contracts (gross)(7) $ 4,690 Model-based Equity volatility 0.08% 290.64% 47.67%
Equity forward 57.99% 165.83% 89.45%
Equity-FX correlation (95.00)% 80.00% (16.00)%
Equity-Equity correlation (6.49)% 99.00% 85.61%
Commodity and other contracts (gross) $ 3,172 Model-based Forward price 8.00% 599.44% 123.22%
Commodity volatility 10.87% 188.30% 26.85%
Commodity correlation (50.52)% 89.83% (7.11)%
Credit derivatives (gross) $ 1,480 Model-based Credit spread 1.00bps 874.72bps 68.83bps
427 Price-based Recovery rate 20.00% 75.00% 44.72%
Upfront points 2.74% 99.96% 59.37%
Price $ 40 $ 103 $ 80
Credit correlation 30.00% 80.00% 54.57%

Table continues on the next page.

270
 Fair value(1) Weighted
As of December 31, 2021 (in millions) Methodology Input Low(2)(3) High(2)(3) average(4)
Non-trading derivatives and other financial
assets and liabilities measured on a
recurring basis (gross) $ 69 Price-based Price $ 94 $ 2,598 $ 591
Loans and leases $ 691 Model-based Equity volatility 22.48% 85.44% 50.56%
Forward price 26.95% 333.08% 106.97%
Commodity volatility 10.87% 188.30% 26.85%
Commodity correlation (50.52)% 89.83% (7.11)%
Mortgage servicing rights $ 331 Cash flow Yield (1.20)% 12.10% 4.51%
73 Model-based WAL 2.75 years 5.86 years 5.14 years
Liabilities
Interest-bearing deposits $ 183 Model-based IR Normal volatility 0.34% 0.88% 0.68%
Equity volatility 0.08% 290.64% 54.05%
Equity forward 57.99% 165.83% 89.39%
Securities loaned and sold under
agreements to repurchase $ 643 Model-based Interest rate 0.12% 1.95% 1.47%
Trading account liabilities
Securities sold, not yet purchased and other
trading liabilities $ 63 Price-based Price $ — $ 12,875 $ 1,707
Short-term borrowings and
long-term debt $ 25,514 Model-based IR Normal volatility 0.07% 0.88% 0.60%
Equity volatility 0.08% 290.64% 53.21%
Equity-IR correlation (3.53)% 60.00% 32.12%
Equity-FX correlation (95.00)% 80.00% (15.98)%
FX volatility 0.06% 41.76% 9.38%

Fair value(1) Weighted

As of December 31, 2020 (in millions) Methodology Input Low(2)(3) High(2)(3) average(4)

Securities borrowed and purchased under

agreements to resell $ 320 Model-based Credit spread 15bps 15bps 15bps
Interest rate 0.30% 0.35% 0.32%
Mortgage-backed securities $ 344 Price-based Price $ 30 $ 111 $ 80
168 Yield analysis Yield 2.63% 21.80% 10.13%
State and municipal, foreign government,
corporate and other debt securities $ 1,566 Price-based Price $ — $ 2,265 $ 90
852 Model-based Credit spread 35bps 375bps 226bps
Marketable equity securities(5) $ 36 Model-based Price $ — $ 31,000 $ 5,132
36 Price-based WAL 1.48 years 1.48 years 1.48 years
Recovery (in millions) $ 5,733 $ 5,733 $ 5,733
Asset-backed securities $ 863 Price-based Price $ 2 $ 157 $ 59
744 Yield analysis Yield 3.77% 21.77% 9.01%
Non-marketable equities $ 205 Comparables analysis Illiquidity discount 10.00% 45.00% 25.29%
PE ratio 13.60x 28.00x 22.83x
142 Price-based Price $ 136 $ 2,041 $ 1,647
EBITDA multiples 3.30x 36.70x 15.10x
Adjustment factor 0.20x 0.61x 0.25x
Appraised value (in thousands) $ 287 $ 39,745 $ 21,754
Revenue multiple 2.70x 28.00x 8.92x

Table continues on the next page.

271
 Fair value(1) Weighted
As of December 31, 2020 (in millions) Methodology Input Low(2)(3) High(2)(3) average(4)
Derivatives—gross(6)
Interest rate contracts (gross) $ 5,143 Model-based Inflation volatility 0.27% 2.36% 0.78%
IR normal volatility 0.11% 0.73% 0.52%
Foreign exchange contracts (gross) $ 1,296 Model-based FX volatility 1.70% 12.63% 5.41%
Contingent event 100.00% 100.00% 100.00%
Interest rate 0.84% 84.09% 17.55%
IR normal volatility 0.11% 0.52% 0.46%
IR-FX correlation 40.00% 60.00% 50.00%
IR-IR correlation (21.71)% 40.00% 38.09%
Equity contracts (gross)(7) $ 7,330 Model-based Equity volatility 5.00% 91.43% 42.74%
Forward price 65.88% 105.20% 91.82%
Commodity and other contracts (gross) $ 1,636 Model-based Commodity correlation (44.92)% 95.91% 70.60%
Commodity volatility 0.16% 80.17% 23.72%
Forward price 15.40% 262.00% 98.53%
Credit derivatives (gross) $ 1,854 Model-based Credit spread 3.50bps 352.35bps 99.89bps
408 Price-based Recovery rate 20.00% 60.00% 41.60%
Credit correlation 25.00% 80.00% 43.36%
Upfront points —% 107.20% 48.10%
Loans and leases $ 1,804 Model-based Equity volatility 24.65% 83.09% 58.23%
Mortgage servicing rights $ 258 Cash flow Yield 2.86% 16.00% 6.32%
78 Model-based WAL 2.66 years 5.40 years 4.46 years
Liabilities
Interest-bearing deposits $ 206 Model-based IR Normal volatility 0.11% 0.73% 0.54%
Securities loaned and sold under
agreements to repurchase $ 631 Model-based Interest rate 0.08% 1.86% 0.71%
Trading account liabilities
Securities sold, not yet purchased and
other trading liabilities $ 178 Model-based IR lognormal volatility 52.06% 128.87% 89.82%
$ 62 Price-based Price $ — $ 866 $ 80
Interest rate 10.03% 20.07% 13.70%
Short-term borrowings and long-term debt $ 24,827 Model-based IR normal volatility 0.11% 0.73% 0.51%
Forward price 15.40% 262.00% 92.48%

(1) The tables above include the fair values for the items listed and may not foot to the total population for each category.
(2) Some inputs are shown as zero due to rounding.
(3) When the low and high inputs are the same, there is either a constant input applied to all positions, or the methodology involving the input applies to only one large position.
(4) Weighted averages are calculated based on the fair values of the instruments.
(5) For equity securities, the price inputs are expressed on an absolute basis, not as a percentage of the notional amount.
(6) Both trading and non-trading account derivatives—assets and liabilities—are presented on a gross absolute value basis.
(7) Includes hybrid products.

Uncertainty of Fair Value Measurements Relating to whether the Company holds the instrument as an asset or a liability. For
Unobservable Inputs certain instruments, the pricing, hedging and risk management are sensitive
Valuation uncertainty arises when there is insufficient or disperse market to the correlation between various inputs rather than on the analysis and
data to allow a precise determination of the exit value of a fair-valued aggregation of the individual inputs.
position or portfolio in today’s market. This is especially prevalent in Level The following section describes some of the most significant unobservable
3 fair value instruments, where uncertainty exists in valuation inputs inputs used by the Company in Level 3 fair value measurements.
that may be both unobservable and significant to the instrument’s (or
portfolio’s) overall fair value measurement. The uncertainties associated Correlation
with key unobservable inputs on the Level 3 fair value measurements may Correlation is a measure of the extent to which two or more variables
not be independent of one another. In addition, the amount and direction change in relation to each other. A variety of correlation-related assumptions
of the uncertainty on a fair value measurement for a given change in an are required for a wide range of instruments, including equity and credit
unobservable input depends on the nature of the instrument as well as baskets, foreign exchange options, Credit Index Tranches and many other

272
instruments. For almost all of these instruments, correlations are not directly Adjusted yield is generally used to discount the projected future principal
observable in the market and must be calculated using alternative sources, and interest cash flows on instruments, such as asset-backed securities.
including historical information. Estimating correlation can be especially Adjusted yield is impacted by changes in the interest rate environment and
difficult where it may vary over time, and calculating correlation information relevant credit spreads.
from market data requires significant assumptions regarding the
informational efficiency of the market (e.g., swaption markets). Uncertainty Prepayment
therefore exists when an estimate of the appropriate level of correlation as an Voluntary unscheduled payments (prepayments) change the future cash
input into some fair value measurements is required. flows for the investor and thereby change the fair value of the security. The
Changes in correlation levels can have a substantial impact, favorable effect of prepayments is more pronounced for residential mortgage-backed
or unfavorable, on the value of an instrument, depending on its nature. A securities. Prepayment is generally negatively correlated with delinquency
change in the default correlation of the fair value of the underlying bonds and interest rate. A combination of low prepayments and high delinquencies
comprising a CDO structure would affect the fair value of the senior tranche. amplifies each input’s negative impact on a mortgage securities’ valuation.
For example, an increase in the default correlation of the underlying bonds As prepayment speeds change, the weighted average life of the security
would reduce the fair value of the senior tranche, because highly correlated changes, which impacts the valuation either positively or negatively,
instruments produce greater losses in the event of default and a portion of depending upon the nature of the security and the direction of the change in
these losses would become attributable to the senior tranche. That same the weighted average life.
change in default correlation would have a different impact on junior Recovery
tranches of the same structure. Recovery is the proportion of the total outstanding balance of a bond or
Volatility loan that is expected to be collected in a liquidation scenario. For many
Volatility represents the speed and severity of market price changes and is a credit securities (e.g., commercial mortgage backed securities), the expected
key factor in pricing options. Volatility generally depends on the tenor of the recovery amount of a defaulted property is typically unknown until a
underlying instrument and the strike price or level defined in the contract. liquidation of the property is imminent. The assumed recovery of a security
Volatilities for certain combinations of tenor and strike are not observable may differ from its actual recovery that will be observable in the future.
and need to be estimated using alternative methods, such as comparable Generally, an increase in the recovery rate assumption increases the fair
instruments, historical analysis or other sources of market information. This value of the security. An increase in loss severity, the inverse of the recovery
leads to uncertainty around the final fair value measurement of instruments rate, reduces the amount of principal available for distribution and, as a
with unobservable volatilities. result, decreases the fair value of the security.
The general relationship between changes in the value of an instrument Credit Spread
(or a portfolio) to changes in volatility also depends on changes in interest Credit spread is a component of the security representing its credit quality.
rates and the level of the underlying index. Generally, long option positions Credit spread reflects the market perception of changes in prepayment,
(assets) benefit from increases in volatility, whereas short option positions delinquency and recovery rates, therefore capturing the impact of other
(liabilities) will suffer losses. Some instruments are more sensitive to changes variables on the fair value. Changes in credit spread affect the fair value of
in volatility than others. For example, an at-the-money option would securities differently depending on the characteristics and maturity profile of
experience a greater percentage change in its fair value than a deep-in-the- the security. For example, credit spread is a more significant driver of the fair
money option. In addition, the fair value of an option with more than one value measurement of a high yield bond as compared to an investment grade
underlying security (e.g., an option on a basket of equities) depends on the bond. Generally, the credit spread for an investment grade bond is also more
volatility of the individual underlying securities as well as their correlations. observable and less volatile than its high yield counterpart.
Yield
In some circumstances, the yield of an instrument is not observable in
the market and must be estimated from historical data or from yields of
similar securities. This estimated yield may need to be adjusted to capture
the characteristics of the security being valued. Whenever the amount of
the adjustment is significant to the value of the security, the fair value
measurement is classified as Level 3.

273
Items Measured at Fair Value on a Nonrecurring Basis Where the fair value of the related collateral is based on an appraised
Certain assets and liabilities are measured at fair value on a nonrecurring value, the loan is generally classified as Level 3. In addition, for corporate
basis and, therefore, are not included in the tables above. These include loans, appraisals of the collateral are often based on sales of similar assets;
assets measured at cost that have been written down to fair value during the however, because the prices of similar assets require significant adjustments
periods as a result of an impairment. These also include non-marketable to reflect the unique features of the underlying collateral, these fair value
equity securities that have been measured using the measurement alternative measurements are generally classified as Level 3.
and are either (i) written down to fair value during the periods as a result The fair value of non-marketable equity securities under the
of an impairment or (ii) adjusted upward or downward to fair value as measurement alternative is based on observed transaction prices for the
a result of a transaction observed during the periods for the identical or identical or similar investment of the same issuer, or an internal valuation
similar investment of the same issuer. In addition, these assets include loans technique in the case of an impairment. Where there are insufficient market
held-for-sale and other real estate owned that are measured at the lower of observations to conclude the inputs are observable, where significant
cost or market value. adjustments are made to the observed transaction prices or when an
The following tables present the carrying amounts of all assets that were internal valuation technique is used, the security is classified as Level 3. Fair
still held for which a nonrecurring fair value measurement was recorded: value may differ from the observed transaction price due to a number of
factors, including marketability adjustments and differences in rights and
In millions of dollars Fair value Level 2 Level 3 obligations when the observed transaction is not for the identical investment
December 31, 2021 held by Citi.
Loans HFS(1) $2,298 $ 986 $1,312
Other real estate owned 11 — 11
Loans(2) 144 — 144
Non-marketable equity securities measured
using the measurement alternative 655 104 551
Total assets at fair value on a
nonrecurring basis $3,108 $1,090 $2,018

In millions of dollars Fair value Level 2 Level 3

December 31, 2020
Loans HFS(1) $2,430 $ 207 $2,223
Other real estate owned 17 4 13
Loans(2) 703 — 703
Non-marketable equity securities measured using
the measurement alternative 458 403 55
Total assets at fair value on a nonrecurring basis $3,608 $ 614 $2,994

(1) Net of fair value amounts on the unfunded portion of loans HFS recognized as Other liabilities on the
Consolidated Balance Sheet.
(2) Represents impaired loans held for investment whose carrying amount is based on the fair value of
the underlying collateral less costs to sell, primarily real estate.

The fair value of loans HFS is determined where possible using quoted
secondary-market prices. If no such quoted price exists, the fair value of a
loan is determined using quoted prices for a similar asset or assets, adjusted
for the specific attributes of that loan. Fair value for the other real estate
owned is based on appraisals. For loans whose carrying amount is based on
the fair value of the underlying collateral, the fair values depend on the type
of collateral. Fair value of the collateral is typically estimated based on quoted
market prices if available, appraisals or other internal valuation techniques.

274
Valuation Techniques and Inputs for Level 3 Nonrecurring Fair Value Measurements
The following tables present the valuation techniques covering the majority of Level 3 nonrecurring fair value measurements and the most significant
unobservable inputs used in those measurements:

Fair value(1) Weighted

As of December 31, 2021 (in millions) Methodology Input Low(2) High average(3)
Loans HFS $ 1,312 Price-based Price $ 89 $ 100 $ 99
Other real estate owned $ 4 Price-based Appraised value(4) $14,000 $2,392,464 $1,660,120
5 Recovery analysis
Loans(5) $ 120 Recovery analysis Appraised value(4) $10,000 $3,900,000 $ 247,018
24 Price-based Price $ 3 $ 75 $ 35
Recovery rate 84.00% 100.00% 84.00%
Non-marketable equity securities measured
using the measurement alternative $ 551 Price-based Price $ 6 $ 1,339 $ 52

Fair value(1) Weighted

As of December 31, 2020 (in millions) Methodology Input Low(2) High average(3)
Loans HFS $ 2,182 Price-based Price $ 78 $ 100 $ 97
Other real estate owned $ 7 Price-based Appraised value (4)
$3,110,711 $ 4,241,357 $3,586,975
4 Recovery analysis Price 51 51 51
Loans(5) $ 96 Price-based Price $ 2 $ 49 $ 23
429 Recovery analysis Appraised value(4) $ 95 $43,646,426 $1,698,938
Non-marketable equity securities measured using Comparable
the measurement alternative $ 36 analysis Revenue multiple 1.70x 15.10x 10.88x
Net asset
18 approach Illiquidity discount 20.00% 20.00% 20.00%
Price $ — $ 17 $ 6

(1) The table above includes the fair values for the items listed and may not foot to the total population for each category.
(2) Some inputs are shown as zero due to rounding.
(3) Weighted averages are calculated based on the fair values of the instruments.
(4) Appraised values are disclosed in whole dollars.
(5) Represents impaired loans held for investment whose carrying amount is based on the fair value of the underlying collateral less costs to sell, primarily real estate.

Nonrecurring Fair Value Changes

The following tables present total nonrecurring fair value measurements
for the period, included in earnings, attributable to the change in fair value
relating to assets that were still held:

Year ended Year ended

In millions of dollars December 31, 2021 In millions of dollars December 31, 2020
Loans HFS $ (31) Loans HFS $ (93)
Other real estate owned — Other real estate owned (1)
Loans(1) 9 Loans(1) 109
Non-marketable equity securities measured using the Non-marketable equity securities measured using the
measurement alternative 468 measurement alternative 221
Total nonrecurring fair value gains (losses) $ 446 Total nonrecurring fair value gains (losses) $ 236

(1) Represents impaired loans held for investment whose carrying amount is based on the fair value of
the underlying collateral less costs to sell, primarily real estate.

275
Estimated Fair Value of Financial Instruments Not
Carried at Fair Value
The following tables present the carrying value and fair value of Citigroup’s
financial instruments that are not carried at fair value. The tables below
therefore exclude items measured at fair value on a recurring basis presented
in the tables above.
The disclosure also excludes leases, affiliate investments, pension and
benefit obligations, certain insurance contracts and tax-related items. Also, as
required, the disclosure excludes the effect of taxes, any premium or discount
that could result from offering for sale at one time the entire holdings of a
particular instrument, excess fair value associated with deposits with no fixed
maturity and other expenses that would be incurred in a market transaction.
In addition, the tables exclude the values of non-financial assets and
liabilities, as well as a wide range of franchise, relationship and intangible
values, which are integral to a full assessment of Citigroup’s financial
position and the value of its net assets.
Fair values vary from period to period based on changes in a wide range
of factors, including interest rates, credit quality and market perceptions of
value, and as existing assets and liabilities run off and new transactions are
entered into.
December 31, 2021 Estimated fair value
In billions of dollars Carrying value Estimated fair value Level 1 Level 2 Level 3
Assets
Investments, net of allowance $ 221.9 $ 221.0 $111.8 $ 106.4 $ 2.8
Securities borrowed and purchased under agreements to resell 110.8 110.8 — 106.4 4.4
Loans(1)(2) 644.8 659.6 — — 659.6
Other financial assets(2)(3) 351.9 351.9 242.1 19.9 89.9
Liabilities          
Deposits $ 1,315.6 $ 1,316.2 $ — $ 1,153.9 $162.3
Securities loaned and sold under agreements to repurchase 134.6 134.6 — 134.5 0.1
Long-term debt(4) 171.8 184.6 — 171.9 12.7
Other financial liabilities(5) 111.1 111.1 — 17.0 94.1

December 31, 2020 Estimated fair value

In billions of dollars Carrying value Estimated fair value Level 1 Level 2 Level 3
Assets
Investments, net of allowance $ 110.3 $ 113.2 $ 23.3 $ 87.0 $ 2.9
Securities borrowed and purchased under agreements to resell 109.5 109.5 — 109.5 —
Loans(1)(2) 643.3 663.9 — 0.6 663.3
Other financial assets(2)(3) 383.2 383.2 291.5 18.1 73.6
Liabilities          
Deposits $ 1,278.7 $ 1,278.8 $ — $ 1,093.3 $185.5
Securities loaned and sold under agreements to repurchase 139.3 139.3 — 139.3 —
Long-term debt(4) 204.6 221.2 — 197.8 23.4
Other financial liabilities(5) 102.4 102.4 — 19.2 83.2

(1) The carrying value of loans is net of the Allowance for credit losses on loans of $16.5 billion for December 31, 2021 and $25.0 billion for December 31, 2020. In addition, the carrying values exclude $0.5 billion and
$0.7 billion of lease finance receivables at December 31, 2021 and 2020, respectively.
(2) Includes items measured at fair value on a nonrecurring basis.
(3) Includes cash and due from banks, deposits with banks, brokerage receivables, reinsurance recoverables and other financial instruments included in Other assets on the Consolidated Balance Sheet, for all of which the
carrying value is a reasonable estimate of fair value.
(4) The carrying value includes long-term debt balances under qualifying fair value hedges.
(5) Includes brokerage payables, separate and variable accounts, short-term borrowings (carried at cost) and other financial instruments included in Other liabilities on the Consolidated Balance Sheet, for all of which the
carrying value is a reasonable estimate of fair value.

276
 The estimated fair values of the Company’s corporate unfunded lending
commitments at December 31, 2021 and 2020 were off-balance liabilities
of $8.1 billion and $7.3 billion, respectively, substantially all of which are
classified as Level 3. The Company does not estimate the fair values of
consumer unfunded lending commitments, which are generally cancellable
by providing notice to the borrower.

277
25. FAIR VALUE ELECTIONS an election is made. The changes in fair value are recorded in current
earnings. Movements in DVA are reported as a component of AOCI. Additional
The Company may elect to report most financial instruments and certain
discussion regarding the applicable areas in which fair value elections were
other items at fair value on an instrument-by-instrument basis with changes
made is presented in Note 24 to the Consolidated Financial Statements.
in fair value reported in earnings, other than DVA (see below). The election
The Company has elected fair value accounting for its mortgage servicing
is made upon the initial recognition of an eligible financial asset, financial
rights (MSRs). See Note 21 to the Consolidated Financial Statements for
liability or firm commitment or when certain specified reconsideration
additional details on Citi’s MSRs.
events occur. The fair value election may not otherwise be revoked once
The following table presents the changes in fair value of those items for which the fair value option has been elected:

Changes in fair
value—gains (losses)
for the years
ended December 31,
In millions of dollars 2021 2020
Assets
Securities borrowed and purchased under agreements to resell $ (87) $ —
Trading account assets 59 (136)
Investments — —
Loans
Certain corporate loans (171) 2,486
Certain consumer loans — 1
Total loans $ (171) $ 2,487
Other assets
MSRs $ 43 $ (204)
Certain mortgage loans HFS(1) 70 299
Total other assets $ 113 $ 95
Total assets $ (86) $ 2,446
Liabilities
Interest-bearing deposits $ (118) $ (154)
Securities loaned and sold under agreements to repurchase 66 (559)
Trading account liabilities 17 (1)
Short-term borrowings(2) 675 802
Long-term debt(2) 386 (2,700)
Total liabilities $1,026 $ (2,612)

(1) Includes gains (losses) associated with interest rate lock commitments for those loans that have been originated and elected under the fair value option.
(2) Includes DVA that is included in AOCI. See Notes 19 and 24 to the Consolidated Financial Statements.

278
Own Debt Valuation Adjustments (DVA) Changes in fair value for transactions in these portfolios are recorded in
Own debt valuation adjustments are recognized on Citi’s liabilities for which Principal transactions. The related interest revenue and interest expense are
the fair value option has been elected using Citi’s credit spreads observed measured based on the contractual rates specified in the transactions and
in the bond market. Changes in fair value of fair value option liabilities are reported as Interest revenue and Interest expense in the Consolidated
related to changes in Citigroup’s own credit spreads (DVA) are reflected as a Statement of Income.
component of AOCI. See Note 1 to the Consolidated Financial Statements for
additional information. Certain Loans and Other Credit Products
Among other variables, the fair value of liabilities for which the fair value Citigroup has also elected the fair value option for certain other originated
option has been elected (other than non-recourse debt and similar liabilities) and purchased loans, including certain unfunded loan products, such as
is impacted by the narrowing or widening of the Company’s credit spreads. guarantees and letters of credit, executed by Citigroup’s lending and trading
The estimated changes in the fair value of these non-derivative liabilities businesses. None of these credit products are highly leveraged financing
due to such changes in the Company’s own credit spread (or instrument- commitments. Significant groups of transactions include loans and
specific credit risk) were a gain of $296 million and a loss of $616 million unfunded loan products that are expected to be either sold or securitized in
for the years ended December 31, 2021 and 2020, respectively. Changes in the near term, or transactions where the economic risks are hedged with
fair value resulting from changes in instrument-specific credit risk were derivative instruments, such as purchased credit default swaps or total return
estimated by incorporating the Company’s current credit spreads observable swaps where the Company pays the total return on the underlying loans to a
in the bond market into the relevant valuation technique used to value each third party. Citigroup has elected the fair value option to mitigate accounting
liability as described above. mismatches in cases where hedge accounting is complex and to achieve
operational simplifications. Fair value was not elected for most lending
The Fair Value Option for Financial Assets transactions across the Company.
and Financial Liabilities

Selected Portfolios of Securities Purchased Under Agreements

to Resell, Securities Borrowed, Securities Sold Under
Agreements to Repurchase, Securities Loaned and Certain
Uncollateralized Short-Term Borrowings
The Company elected the fair value option for certain portfolios of fixed
income securities purchased under agreements to resell and fixed income
securities sold under agreements to repurchase, securities borrowed, securities
loaned and certain uncollateralized short-term borrowings held primarily by
broker-dealer entities in the United States, the United Kingdom and Japan.
In each case, the election was made because the related interest rate risk is
managed on a portfolio basis, primarily with offsetting derivative instruments
that are accounted for at fair value through earnings.

The following table provides information about certain credit products carried at fair value:

December 31, 2021 December 31, 2020

In millions of dollars Trading assets Loans Trading assets Loans
Carrying amount reported on the Consolidated Balance Sheet $9,530 $6,082 $8,063 $6,854
Aggregate unpaid principal balance in excess of (less than) fair value (100) 226 (915) (14)
Balance of non-accrual loans or loans more than 90 days past due — 1 — 4
Aggregate unpaid principal balance in excess of (less than) fair value for non-accrual
loans or loans more than 90 days past due — — — —

In addition to the amounts reported above, $719 million and

$1,068 million of unfunded commitments related to certain credit products
selected for fair value accounting were outstanding as of December 31, 2021
and 2020, respectively.

279
 Changes in the fair value of funded and unfunded credit products are Certain Investments in Private Equity and Real Estate Ventures
classified in Principal transactions in Citi’s Consolidated Statement of Citigroup invests in private equity and real estate ventures for the purpose
Income. Related interest revenue is measured based on the contractual of earning investment returns and for capital appreciation. The Company
interest rates and reported as Interest revenue on Trading account assets has elected the fair value option for certain of these ventures, because such
or loan interest depending on the balance sheet classifications of the credit investments are considered similar to many private equity or hedge fund
products. The changes in fair value for the years ended December 31, 2021 activities in Citi’s investment companies, which are reported at fair value.
and 2020 due to instrument-specific credit risk totaled to a loss of The fair value option brings consistency in the accounting and evaluation of
$21 million and a loss of $16 million, respectively. these investments. All investments (debt and equity) in such private equity
and real estate entities are accounted for at fair value. These investments are
Certain Investments in Unallocated Precious Metals classified as Investments on Citigroup’s Consolidated Balance Sheet.
Citigroup invests in unallocated precious metals accounts (gold, silver, Changes in the fair values of these investments are classified in Other
platinum and palladium) as part of its commodity and foreign currency revenue in the Company’s Consolidated Statement of Income.
trading activities or to economically hedge certain exposures from issuing
structured liabilities. Under ASC 815, the investment is bifurcated into a debt Certain Mortgage Loans Held-for-Sale (HFS)
host contract and a commodity forward derivative instrument. Citigroup Citigroup has elected the fair value option for certain purchased and
elects the fair value option for the debt host contract, and reports the debt originated prime fixed-rate and conforming adjustable-rate first mortgage
host contract within Trading account assets on the Company’s Consolidated loans HFS. These loans are intended for sale or securitization and are hedged
Balance Sheet. The total carrying amount of debt host contracts across with derivative instruments. The Company has elected the fair value option
unallocated precious metals accounts was approximately $0.3 billion and to mitigate accounting mismatches in cases where hedge accounting is
$0.5 billion at December 31, 2021 and 2020, respectively. The amounts are complex and to achieve operational simplifications.
expected to fluctuate based on trading activity in future periods.
As part of its commodity and foreign currency trading activities, Citi trades
unallocated precious metals investments and executes forward purchase
and forward sale derivative contracts with trading counterparties. When
Citi sells an unallocated precious metals investment, Citi’s receivable from
its depository bank is repaid and Citi derecognizes its investment in the
unallocated precious metal. The forward purchase or sale contract with the
trading counterparty indexed to unallocated precious metals is accounted
for as a derivative, at fair value through earnings. As of December 31,
2021, there were approximately $15.2 billion and $10.5 billion of notional
amounts of such forward purchase and forward sale derivative contracts
outstanding, respectively.

The following table provides information about certain mortgage loans HFS carried at fair value:

In millions of dollars December 31, 2021 December 31, 2020

Carrying amount reported on the Consolidated Balance Sheet $3,035 $1,742
Aggregate fair value in excess of (less than) unpaid principal balance 70 91
Balance of non-accrual loans or loans more than 90 days past due 1 —
Aggregate unpaid principal balance in excess of fair value for non-accrual loans or loans more than 90 days past due — —

The changes in the fair values of these mortgage loans are reported in
Other revenue in the Company’s Consolidated Statement of Income. There
was no net change in fair value during the years ended December 31, 2021
and 2020 due to instrument-specific credit risk. Related interest income
continues to be measured based on the contractual interest rates and reported
as Interest revenue in the Consolidated Statement of Income.

280
Certain Debt Liabilities
The Company has elected the fair value option for certain debt liabilities. The
Company elected the fair value option because these exposures are considered
to be trading-related positions and, therefore, they are managed on a fair
value basis. These positions will continue to be classified as debt, deposits
or derivatives classified as Trading account liabilities on the Company’s
Consolidated Balance Sheet according to their legal form.
The following table provides information about the carrying value of notes carried at fair value, disaggregated by type of risk:

In billions of dollars December 31, 2021 December 31, 2020

Interest rate linked $38.9 $34.5
Foreign exchange linked — 1.2
Equity linked 36.1 27.3
Commodity linked 3.9 1.4
Credit linked 3.7 2.6
Total $82.6 $67.0

The portion of the changes in fair value attributable to changes in to purchase financial assets that will also be accounted for at fair value
Citigroup’s own credit spreads (i.e., DVA) is reflected as a component of AOCI through earnings. The elections have been made to mitigate accounting
while all other changes in fair value are reported in Principal transactions. mismatches and to achieve operational simplifications. These positions
Changes in the fair value of these liabilities include accrued interest, which is are reported in Short-term borrowings and Long-term debt on the
also included in the change in fair value reported in Principal transactions. Company’s Consolidated Balance Sheet. The portion of the changes in fair
value attributable to changes in Citigroup’s own credit spreads (i.e., DVA) is
Certain Non-Structured Liabilities reflected as a component of AOCI while all other changes in fair value are
The Company has elected the fair value option for certain non-structured reported in Principal transactions.
liabilities with fixed and floating interest rates. The Company has elected Interest expense on non-structured liabilities is measured based on
the fair value option where the interest rate risk of such liabilities may be the contractual interest rates and reported as Interest expense in the
economically hedged with derivative contracts or the proceeds are used Consolidated Statement of Income.

The following table provides information about long-term debt carried at fair value:

In millions of dollars December 31, 2021 December 31, 2020

Carrying amount reported on the Consolidated Balance Sheet $82,609 $ 67,063
Aggregate unpaid principal balance in excess of (less than) fair value (2,459) (5,130)

The following table provides information about short-term borrowings carried at fair value:

In millions of dollars December 31, 2021 December 31, 2020

Carrying amount reported on the Consolidated Balance Sheet $7,358 $4,683
Aggregate unpaid principal balance in excess of (less than) fair value (644) 68

281
26. PLEDGED ASSETS, COLLATERAL, GUARANTEES Collateral
AND COMMITMENTS At December 31, 2021 and 2020, the approximate fair value of collateral
Pledged Assets
received by Citi that may be resold or repledged, excluding the impact of
In connection with Citi’s financing and trading activities, Citi has pledged allowable netting, was $650.8 billion and $671.6 billion, respectively. This
assets to collateralize its obligations under repurchase agreements, secured collateral was received in connection with resale agreements, securities
financing agreements, secured liabilities of consolidated VIEs and other borrowings and loans, securities for securities lending transactions, derivative
borrowings. The approximate carrying values of the significant components transactions and margined broker loans.
of pledged assets recognized on Citi’s Consolidated Balance Sheet included At December 31, 2021 and 2020, a substantial portion of the collateral
the following: received by Citi had been sold or repledged in connection with repurchase
agreements, securities sold, not yet purchased, securities lendings, pledges to
December 31, December 31,
clearing organizations, segregation requirements under securities laws and
In millions of dollars 2021 2020 regulations, derivative transactions and bank loans.
In addition, at December 31, 2021 and 2020, Citi had pledged
Investment securities $252,192 $ 231,696
Loans 232,319 239,699 $481.0 billion and $470.7 billion, respectively, of collateral that may not be
Trading account assets 140,980 174,717 sold or repledged by the secured parties.
Total $625,491 $ 646,112 Leases
The Company’s operating leases, where Citi is a lessee, include real estate
Restricted Cash such as office space and branches and various types of equipment. These
Citigroup defines restricted cash (as cash subject to withdrawal restrictions) leases may contain renewal and extension options and early termination
to include cash deposited with central banks that must be maintained to features. However, these options do not impact the lease term unless the
meet minimum regulatory requirements, and cash set aside for the benefit of Company is reasonably certain that it will exercise the options. These leases
customers or for other purposes such as compensating balance arrangements have a weighted-average remaining lease term of approximately six years
or debt retirement. Restricted cash includes minimum reserve requirements as of December 31, 2021 and 2020. The operating lease ROU asset was
with the Federal Reserve Bank and certain other central banks and cash $2.9 billion and $2.8 billion, as of December 31, 2021 and 2020, respectively.
segregated to satisfy rules regarding the protection of customer assets as The operating lease ROU liability was $3.1 billion and $3.1 billion, as
required by Citigroup broker-dealers’ primary regulators, including the of December 31, 2021 and 2020, respectively. The Company recognizes
United States Securities and Exchange Commission (SEC), the Commodity fixed lease costs on a straight-line basis throughout the lease term in the
Futures Trading Commission and the United Kingdom’s Prudential Consolidated Statement of Income. In addition, variable lease costs are
Regulation Authority. recognized in the period in which the obligation for those payments is
Restricted cash is included on the Consolidated Balance Sheet within the incurred. The total operating lease expense (principally for offices, branches
following balance sheet lines: and equipment), net of $12 million and $27 million of sublease income, was
$1,061 million and $1,054 million for the years ended December 31, 2021
December 31, December 31, and 2020, respectively.
In millions of dollars 2021 2020 The table below provides the Cash Flow Statement Supplemental
Cash and due from banks $ 2,786 $ 3,774 Information:
Deposits with banks, net of allowance 10,636 14,203
Total $ 13,422 $ 17,977 December 31, December 31,
In millions of dollars 2021 2020
Cash paid for amounts included in the measurement
In addition, included in Cash and due from banks and Deposits with of lease liabilities $806 $814
banks at December 31, 2021 and 2020 were $13.7 billion and $9.4 billion, Right-of-use assets obtained in exchange for new
respectively, of cash segregated under federal and other brokerage regulations operating lease liabilities(1)(2) 845 447
or deposited with clearing organizations.
(1) Represents non-cash activity and, accordingly, is not reflected in the Consolidated Statement of
Cash Flows.
(2) Excludes the decrease in the right-of-use assets related to the purchase of a previously
leased property.

282
Citi’s future lease payments are as follows:

In millions of dollars

2022 $ 763
2023 648
2024 542
2025 445
2026 346
Thereafter 753
Total future lease payments $3,497
Less imputed interest (based on weighted-average discount rate of 3.0%) $ (381)
Lease liability $3,116

Operating lease expense was $1.1 billion for the year ended December 31,
2019.

Guarantees
Citi provides a variety of guarantees and indemnifications to its customers
to enhance their credit standing and enable them to complete a wide variety
of business transactions. For certain contracts meeting the definition of a
guarantee, the guarantor must recognize, at inception, a liability for the fair
value of the obligation undertaken in issuing the guarantee.
In addition, the guarantor must disclose the maximum potential amount
of future payments that the guarantor could be required to make under
the guarantee, if there were a total default by the guaranteed parties. The
determination of the maximum potential future payments is based on
the notional amount of the guarantees without consideration of possible
recoveries under recourse provisions or from collateral held or pledged. As
such, Citi believes such amounts bear no relationship to the anticipated
losses, if any, on these guarantees.

283
The following tables present information about Citi’s guarantees:

Maximum potential amount of future payments

Expire within Expire after Total amount Carrying value
In billions of dollars at December 31, 2021 1 year 1 year outstanding (in millions of dollars)

Financial standby letters of credit $ 34.3 $ 58.4 $ 92.7 $ 791

Performance guarantees 6.6 6.4 13.0 47
Derivative instruments considered to be guarantees 14.6 48.9 63.5 514
Loans sold with recourse — 1.7 1.7 15
Securities lending indemnifications(1) 121.9 — 121.9 —
Credit card merchant processing(2) 119.4 — 119.4 1
Credit card arrangements with partners — 0.8 0.8 7
Other 2.0 12.0 14.0 34
Total $298.8 $128.2 $427.0 $1,409

Maximum potential amount of future payments

Expire within Expire after Total amount Carrying value
In billions of dollars at December 31, 2020 1 year 1 year outstanding (in millions of dollars)

Financial standby letters of credit $ 25.3 $ 68.4 $ 93.7 $1,407

Performance guarantees 7.3 6.0 13.3 72
Derivative instruments considered to be guarantees 20.0 60.9 80.9 671
Loans sold with recourse — 1.2 1.2 9
Securities lending indemnifications(1) 112.2 — 112.2 —
Credit card merchant processing(2) 101.9 — 101.9 3
Credit card arrangements with partners 0.2 0.8 1.0 7
Other — 12.0 12.0 35
Total $266.9 $149.3 $416.2 $2,204

(1) The carrying values of securities lending indemnifications were not material for either period presented, as the probability of potential liabilities arising from these guarantees is minimal.
(2) At December 31, 2021 and 2020, this maximum potential exposure was estimated to be $119 billion and $102 billion, respectively. However, Citi believes that the maximum exposure is not representative of the actual
potential loss exposure based on its historical experience. This contingent liability is unlikely to arise, as most products and services are delivered when purchased and amounts are refunded when items are returned
to merchants.

Financial Standby Letters of Credit Derivative Instruments Considered to Be Guarantees

Citi issues standby letters of credit, which substitute its own credit for that Derivatives are financial instruments whose cash flows are based on a
of the borrower. If a letter of credit is drawn down, the borrower is obligated notional amount and an underlying instrument, reference credit or index,
to repay Citi. Standby letters of credit protect a third party from defaults where there is little or no initial investment, and whose terms require or
on contractual obligations. Financial standby letters of credit include permit net settlement. For a discussion of Citi’s derivatives activities, see
(i) guarantees of payment of insurance premiums and reinsurance risks that Note 22 to the Consolidated Financial Statements.
support industrial revenue bond underwriting, (ii) settlement of payment Derivative instruments considered to be guarantees include only those
obligations to clearing houses, including futures and over-the-counter instruments that require Citi to make payments to the counterparty based on
derivatives clearing (see further discussion below), (iii) support options and changes in an underlying instrument that is related to an asset, a liability or
purchases of securities in lieu of escrow deposit accounts and (iv) letters an equity security held by the guaranteed party. More specifically, derivative
of credit that backstop loans, credit facilities, promissory notes and trade instruments considered to be guarantees include certain over-the-counter
acceptances. written put options where the counterparty is not a bank, hedge fund or
broker-dealer (such counterparties are considered to be dealers in these
Performance Guarantees markets and may, therefore, not hold the underlying instruments). Credit
Performance guarantees and letters of credit are issued to guarantee a derivatives sold by Citi are excluded from the tables above as they are
customer’s tender bid on a construction or systems-installation project or to disclosed separately in Note 22 to the Consolidated Financial Statements. In
guarantee completion of such projects in accordance with contract terms. instances where Citi’s maximum potential future payment is unlimited, the
They are also issued to support a customer’s obligation to supply specified notional amount of the contract is disclosed.
products, commodities or maintenance or warranty services to a third party.

284
Loans Sold with Recourse the merchant. To further mitigate this risk, Citi may delay settlement, require
Loans sold with recourse represent Citi’s obligations to reimburse the buyers a merchant to make an escrow deposit, include event triggers to provide Citi
for loan losses under certain circumstances. Recourse refers to the clause with more financial and operational control in the event of the financial
in a sales agreement under which a seller/lender will fully reimburse the deterioration of the merchant or require various credit enhancements
buyer/investor for any losses resulting from the purchased loans. This may be (including letters of credit and bank guarantees). In the unlikely event that
accomplished by the sellers taking back any loans that become delinquent. a private label merchant is unable to deliver products, services or a refund
In addition to the amounts shown in the tables above, Citi has recorded to its private label cardholders, Citi is contingently liable to credit or refund
a repurchase reserve for its potential repurchases or make-whole liability cardholders.
regarding residential mortgage representation and warranty claims related With regard to (ii) above, Citi has a potential liability for bank card
to its whole loan sales to U.S. government-sponsored agencies and, to a transactions where Citi provides the transaction processing services as well
lesser extent, private investors. The repurchase reserve was approximately as those where a third party provides the services and Citi acts as a secondary
$19 million and $31 million at December 31, 2021 and 2020, respectively, guarantor, should that processor fail to perform.
and these amounts are included in Other liabilities on the Consolidated Citi’s maximum potential contingent liability related to both bank card
Balance Sheet. and private label merchant processing services is estimated to be the total
volume of credit card transactions that meet the requirements to be valid
Securities Lending Indemnifications charge-back transactions at any given time. At December 31, 2021 and 2020,
Owners of securities frequently lend those securities for a fee to other parties this maximum potential exposure was estimated to be $119.4 billion and
who may sell them short or deliver them to another party to satisfy some $101.9 billion, respectively.
other obligation. Banks may administer such securities lending programs for However, Citi believes that the maximum exposure is not representative
their clients. Securities lending indemnifications are issued by the bank to of the actual potential loss exposure based on its historical experience.
guarantee that a securities lending customer will be made whole in the event This contingent liability is unlikely to arise, as most products and services
that the security borrower does not return the security subject to the lending are delivered when purchased and amounts are refunded when items are
agreement and collateral held is insufficient to cover the market value of the returned to merchants. Citi assesses the probability and amount of its
security. contingent liability related to merchant processing based on the financial
Credit Card Merchant Processing strength of the primary guarantor, the extent and nature of unresolved
Credit card merchant processing guarantees represent the Company’s indirect charge-backs and its historical loss experience. At December 31, 2021 and
obligations in connection with (i) providing transaction processing services 2020, the losses incurred and the carrying amounts of Citi’s contingent
to various merchants with respect to its private label cards and (ii) potential obligations related to merchant processing activities were immaterial.
liability for bank card transaction processing services. The nature of the Credit Card Arrangements with Partners
liability in either case arises as a result of a billing dispute between a Citi, in one of its credit card partner arrangements, provides guarantees to
merchant and a cardholder that is ultimately resolved in the cardholder’s the partner regarding the volume of certain customer originations during
favor. The merchant is liable to refund the amount to the cardholder. In the term of the agreement. To the extent that such origination targets
general, if the credit card processing company is unable to collect this are not met, the guarantees serve to compensate the partner for certain
amount from the merchant, the credit card processing company bears the payments that otherwise would have been generated in connection with such
loss for the amount of the credit or refund paid to the cardholder. originations.
With regard to (i) above, Citi has the primary contingent liability with
respect to its portfolio of private label merchants. The risk of loss is mitigated
as the cash flows between Citi and the merchant are settled on a net basis,
and Citi has the right to offset any payments with cash flows otherwise due to

285
Other Guarantees and Indemnifications potential obligations may be limited to its membership interests in the VTNs,
contributions to the VTN’s funds, or, in certain narrow cases, to the full pro
Credit Card Protection Programs
rata share. The maximum exposure is difficult to estimate as this would
Citi, through its credit card businesses, provides various cardholder protection
require an assessment of claims that have not yet occurred; however, Citi
programs on several of its card products, including programs that provide
believes the risk of loss is remote given historical experience with the VTNs.
coverage for certain losses associated with purchased products, and protection
Accordingly, Citi’s participation in VTNs is not reported in the guarantees
for certain travel-related purchases. These guarantees are not included in
tables above, and there are no amounts reflected on the Consolidated Balance
the table, since the total outstanding amount of the guarantees and Citi’s
Sheet as of December 31, 2021 or 2020 for potential obligations that could
maximum exposure to loss cannot be quantified. The protection is limited
arise from Citi’s involvement with VTN associations.
to certain types of purchases and losses, and it is not possible to quantify
the purchases that would qualify for these benefits at any given time. Citi Long-Term Care Insurance Indemnification
assesses the probability and amount of its potential liability related to these In 2000, Travelers Life & Annuity (Travelers), then a subsidiary of Citi,
programs based on the extent and nature of its historical loss experience. entered into a reinsurance agreement to transfer the risks and rewards of its
At December 31, 2021 and 2020, the actual and estimated losses incurred long-term care (LTC) business to GE Life (now Genworth Financial Inc.,
and the carrying value of Citi’s obligations related to these programs were or Genworth), then a subsidiary of the General Electric Company (GE). As
immaterial. part of this transaction, the reinsurance obligations were provided by two
regulated insurance subsidiaries of GE Life, which funded two collateral
Other Representation and Warranty Indemnifications
trusts with securities. Presently, as discussed below, the trusts are referred to
In the normal course of business, Citi provides standard representations
as the Genworth Trusts.
and warranties to counterparties in contracts in connection with numerous
As part of GE’s spin-off of Genworth in 2004, GE retained the risks and
transactions and also provides indemnifications, including indemnifications
rewards associated with the 2000 Travelers reinsurance agreement by
that protect the counterparties to the contracts in the event that additional
providing a reinsurance contract to Genworth through GE’s Union Fidelity
taxes are owed, due either to a change in the tax law or an adverse
Life Insurance Company (UFLIC) subsidiary that covers the Travelers LTC
interpretation of the tax law. Counterparties to these transactions provide Citi
policies. In addition, GE provided a capital maintenance agreement in favor
with comparable indemnifications. While such representations, warranties
of UFLIC that is designed to assure that UFLIC will have the funds to pay its
and indemnifications are essential components of many contractual
reinsurance obligations. As a result of these reinsurance agreements and
relationships, they do not represent the underlying business purpose for the
the spin-off of Genworth, Genworth has reinsurance protection from UFLIC
transactions. The indemnification clauses are often standard contractual
(supported by GE) and has reinsurance obligations in connection with the
terms related to Citi’s own performance under the terms of a contract and
Travelers LTC policies. As noted below, the Genworth reinsurance obligations
are entered into in the normal course of business based on an assessment
now benefit Brighthouse Financial, Inc. (Brighthouse). While neither
that the risk of loss is remote. Often these clauses are intended to ensure
Brighthouse nor Citi are direct beneficiaries of the capital maintenance
that terms of a contract are met at inception. No compensation is received
agreement between GE and UFLIC, Brighthouse and Citi benefit indirectly
for these standard representations and warranties, and it is not possible to
from the existence of the capital maintenance agreement, which helps assure
determine their fair value because they rarely, if ever, result in a payment.
that UFLIC will continue to have funds necessary to pay its reinsurance
In many cases, there are no stated or notional amounts included in the
obligations to Genworth.
indemnification clauses, and the contingencies potentially triggering the
In connection with Citi’s 2005 sale of Travelers to MetLife Inc. (MetLife),
obligation to indemnify have not occurred and are not expected to occur. As a
Citi provided an indemnification to MetLife for losses (including policyholder
result, these indemnifications are not included in the tables above.
claims) relating to the LTC business for the entire term of the Travelers LTC
Value-Transfer Networks (Including Exchanges and Clearing policies, which, as noted above, are reinsured by subsidiaries of Genworth.
Houses) (VTNs) In 2017, MetLife spun off its retail insurance business to Brighthouse. As a
Citi is a member of, or shareholder in, hundreds of value-transfer networks result, the Travelers LTC policies now reside with Brighthouse. The original
(VTNs) (payment, clearing and settlement systems as well as exchanges) reinsurance agreement between Travelers (now Brighthouse) and Genworth
around the world. As a condition of membership, many of these VTNs require remains in place and Brighthouse is the sole beneficiary of the Genworth
that members stand ready to pay a pro rata share of the losses incurred by Trusts. The Genworth Trusts are designed to provide collateral to Brighthouse
the organization due to another member’s default on its obligations. Citi’s in an amount equal to the statutory liabilities of Brighthouse in respect of the

286
Travelers LTC policies. The assets in the Genworth Trusts are evaluated and There are two types of margin: initial and variation. Where Citi obtains
adjusted periodically to ensure that the fair value of the assets continues to benefits from or controls cash initial margin (e.g., retains an interest
provide collateral in an amount equal to these estimated statutory liabilities, spread), cash initial margin collected from clients and remitted to the CCP
as the liabilities change over time. or depository institutions is reflected within Brokerage payables (payables
If both (i) Genworth fails to perform under the original Travelers/GE to customers) and Brokerage receivables (receivables from brokers, dealers
Life reinsurance agreement for any reason, including its insolvency or the and clearing organizations) or Cash and due from banks, respectively.
failure of UFLIC to perform under its reinsurance contract or GE to perform However, for exchange-traded and OTC-cleared derivatives contracts
under the capital maintenance agreement, and (ii) the assets of the two where Citi does not obtain benefits from or control the client cash balances,
Genworth Trusts are insufficient or unavailable, then Citi, through its LTC the client cash initial margin collected from clients and remitted to the
reinsurance indemnification, must reimburse Brighthouse for any losses CCP or depository institutions is not reflected on Citi’s Consolidated Balance
incurred in connection with the LTC policies. Since both events would have to Sheet. These conditions are met when Citi has contractually agreed with
occur before Citi would become responsible for any payment to Brighthouse the client that (i) Citi will pass through to the client all interest paid by
pursuant to its indemnification obligation, and the likelihood of such events the CCP or depository institutions on the cash initial margin, (ii) Citi will
occurring is currently not probable, there is no liability reflected on the not utilize its right as a clearing member to transform cash margin into
Consolidated Balance Sheet as of December 31, 2021 and 2020 related to other assets, (iii) Citi does not guarantee and is not liable to the client for
this indemnification. However, if both events become reasonably possible the performance of the CCP or the depository institution and (iv) the client
(meaning more than remote but less than probable), Citi will be required to cash balances are legally isolated from Citi’s bankruptcy estate. The total
estimate and disclose a reasonably possible loss or range of loss to the extent amount of cash initial margin collected and remitted in this manner was
that such an estimate could be made. In addition, if both events become approximately $18.7 billion and $16.6 billion as of December 31, 2021 and
probable, Citi will be required to accrue for such liability in accordance with 2020, respectively.
applicable accounting principles. Variation margin due from clients to the respective CCP, or from the CCP
to clients, reflects changes in the value of the client’s derivative contracts
Futures and Over-the-Counter Derivatives Clearing for each trading day. As a clearing member, Citi is exposed to the risk of
Citi provides clearing services on central clearing parties (CCP) for clients non-performance by clients (e.g., failure of a client to post variation margin
that need to clear exchange-traded and over-the-counter (OTC) derivatives to the CCP for negative changes in the value of the client’s derivative
contracts with CCPs. Based on all relevant facts and circumstances, Citi contracts). In the event of non-performance by a client, Citi would move
has concluded that it acts as an agent for accounting purposes in its role to close out the client’s positions. The CCP would typically utilize initial
as clearing member for these client transactions. As such, Citi does not margin posted by the client and held by the CCP, with any remaining
reflect the underlying exchange-traded or OTC derivatives contracts in shortfalls required to be paid by Citi as clearing member. Citi generally holds
its Consolidated Financial Statements. See Note 22 for a discussion of incremental cash or securities margin posted by the client, which would
Citi’s derivatives activities that are reflected in its Consolidated Financial typically be expected to be sufficient to mitigate Citi’s credit risk in the event
Statements. that the client fails to perform.
As a clearing member, Citi collects and remits cash and securities As required by ASC 860-30-25-5, securities collateral posted by clients is
collateral (margin) between its clients and the respective CCP. In certain not recognized on Citi’s Consolidated Balance Sheet.
circumstances, Citi collects a higher amount of cash (or securities) from its
clients than it needs to remit to the CCPs. This excess cash is then held at
depository institutions such as banks or carry brokers.

287
Carrying Value—Guarantees and Indemnifications Performance Risk
At December 31, 2021 and 2020, the total carrying amounts of the liabilities Citi evaluates the performance risk of its guarantees based on the assigned
related to the guarantees and indemnifications included in the tables above referenced counterparty internal or external ratings. Where external ratings
amounted to approximately $1.4 billion and $2.2 billion, respectively. The are used, investment-grade ratings are considered to be Baa/BBB and above,
carrying value of financial and performance guarantees is included in Other while anything below is considered non-investment grade. Citi’s internal
liabilities. For loans sold with recourse, the carrying value of the liability is ratings are in line with the related external rating system. On certain
included in Other liabilities. underlying referenced assets or entities, ratings are not available. Such
referenced assets are included in the “not rated” category. The maximum
Collateral potential amount of the future payments related to the outstanding
Cash collateral available to Citi to reimburse losses realized under guarantees is determined to be the notional amount of these contracts, which
these guarantees and indemnifications amounted to $56.5 billion and is the par amount of the assets guaranteed.
$51.6 billion at December 31, 2021 and 2020, respectively. Securities and Presented in the tables below are the maximum potential amounts of
other marketable assets held as collateral amounted to $84.2 billion and future payments that are classified based on internal and external credit
$80.1 billion at December 31, 2021 and 2020, respectively. The majority ratings. The determination of the maximum potential future payments
of collateral is held to reimburse losses realized under securities lending is based on the notional amount of the guarantees without consideration
indemnifications. In addition, letters of credit in favor of Citi held as of possible recoveries under recourse provisions or from collateral held or
collateral amounted to $4.1 billion and $6.6 billion at December 31, 2021 pledged. As such, Citi believes such amounts bear no relationship to the
and 2020, respectively. Other property may also be available to Citi to cover anticipated losses, if any, on these guarantees.
losses under certain guarantees and indemnifications; however, the value of
such property has not been determined.

Maximum potential amount of future payments

Investment Non-investment Not
In billions of dollars at December 31, 2021 grade grade rated Total
Financial standby letters of credit $81.4 $11.3 $ — $ 92.7
Performance guarantees 10.5 2.5 — 13.0
Derivative instruments deemed to be guarantees — — 63.5 63.5
Loans sold with recourse — — 1.7 1.7
Securities lending indemnifications — — 121.9 121.9
Credit card merchant processing — — 119.4 119.4
Credit card arrangements with partners — — 0.8 0.8
Other — 12.0 2.0 14.0
Total $91.9 $25.8 $309.3 $427.0

Maximum potential amount of future payments

Investment Non-investment Not
In billions of dollars at December 31, 2020 grade grade rated Total
Financial standby letters of credit $78.5 $14.6 $ 0.6 $ 93.7
Performance guarantees 9.8 3.0 0.5 13.3
Derivative instruments deemed to be guarantees — — 80.9 80.9
Loans sold with recourse — — 1.2 1.2
Securities lending indemnifications — — 112.2 112.2
Credit card merchant processing — — 101.9 101.9
Credit card arrangements with partners — — 1.0 1.0
Other — 12.0 — 12.0
Total $88.3 $29.6 $298.3 $416.2

288
Credit Commitments and Lines of Credit
The table below summarizes Citigroup’s credit commitments:

Outside December 31, December 31,

In millions of dollars U.S. of U.S. 2021 2020
Commercial and similar letters of credit $ 654 $ 5,256 $ 5,910 $ 5,221
One- to four-family residential mortgages 1,752 2,599 4,351 5,002
Revolving open-end loans secured by one- to four-family residential properties 6,790 1,123 7,913 9,626
Commercial real estate, construction and land development 15,877 1,966 17,843 12,867
Credit card lines 601,018 99,541 700,559 710,399
Commercial and other consumer loan commitments 207,234 113,322 320,556 322,458
Other commitments and contingencies 5,276 373 5,649 5,715
Total $838,601 $224,180 $1,062,781 $1,071,288

The majority of unused commitments are contingent upon customers Both secured-by-real-estate and unsecured commitments are included in
maintaining specific credit standards. Commercial commitments generally this line, as well as undistributed loan proceeds, where there is an obligation
have floating interest rates and fixed expiration dates and may require to advance for construction progress payments. However, this line only
payment of fees. Such fees (net of certain direct costs) are deferred and, upon includes those extensions of credit that, once funded, will be classified as
exercise of the commitment, amortized over the life of the loan or, if exercise Total loans, net on the Consolidated Balance Sheet.
is deemed remote, amortized over the commitment period.
Credit Card Lines
Commercial and Similar Letters of Credit Citigroup provides credit to customers by issuing credit cards. The credit card
A commercial letter of credit is an instrument by which Citigroup substitutes lines are cancelable by providing notice to the cardholder or without such
its credit for that of a customer to enable the customer to finance the notice as permitted by local law.
purchase of goods or to incur other commitments. Citigroup issues a letter
on behalf of its client to a supplier and agrees to pay the supplier upon Commercial and Other Consumer Loan Commitments
presentation of documentary evidence that the supplier has performed in Commercial and other consumer loan commitments include overdraft and
accordance with the terms of the letter of credit. When a letter of credit is liquidity facilities as well as commercial commitments to make or purchase
drawn, the customer is then required to reimburse Citigroup. loans, purchase third-party receivables, provide note issuance or revolving
underwriting facilities and invest in the form of equity.
One- to Four-Family Residential Mortgages
A one- to four-family residential mortgage commitment is a written Other Commitments and Contingencies
confirmation from Citigroup to a seller of a property that the bank will Other commitments and contingencies include all other transactions related
advance the specified sums enabling the buyer to complete the purchase. to commitments and contingencies not reported on the lines above.

Revolving Open-End Loans Secured by One- to Four-Family Unsettled Reverse Repurchase and Securities Borrowing
Residential Properties Agreements and Unsettled Repurchase and Securities
Revolving open-end loans secured by one- to four-family residential Lending Agreements
properties are essentially home equity lines of credit. A home equity line In addition, in the normal course of business, Citigroup enters into reverse
of credit is a loan secured by a primary residence or second home to the repurchase and securities borrowing agreements, as well as repurchase
extent of the excess of fair market value over the debt outstanding for the and securities lending agreements, which settle at a future date. At
first mortgage. December 31, 2021 and 2020, Citigroup had approximately $126.6 billion
and $71.8 billion of unsettled reverse repurchase and securities borrowing
Commercial Real Estate, Construction and Land Development agreements, and approximately $41.1 billion and $62.5 billion of unsettled
Commercial real estate, construction and land development include repurchase and securities lending agreements, respectively. For a further
unused portions of commitments to extend credit for the purpose of discussion of securities purchased under agreements to resell and securities
financing commercial and multifamily residential properties as well as land borrowed, and securities sold under agreements to repurchase and
development projects. securities loaned, including the Company’s policy for offsetting repurchase
and reverse repurchase agreements, see Note 11 to the Consolidated
Financial Statements.

289
27. CONTINGENCIES Litigation, Regulatory and Other Contingencies
Overview. In addition to the matters described below, in the ordinary
Accounting and Disclosure Framework
course of business, Citigroup, its affiliates and subsidiaries, and current
ASC 450 governs the disclosure and recognition of loss contingencies,
and former officers, directors and employees (for purposes of this section,
including potential losses from litigation, regulatory, tax and other matters.
sometimes collectively referred to as Citigroup and Related Parties) routinely
ASC 450 defines a “loss contingency” as “an existing condition, situation, or
are named as defendants in, or as parties to, various legal actions and
set of circumstances involving uncertainty as to possible loss to an entity that
proceedings. Certain of these actions and proceedings assert claims or seek
will ultimately be resolved when one or more future events occur or fail to
relief in connection with alleged violations of consumer protection, fair
occur.” It imposes different requirements for the recognition and disclosure
lending, securities, banking, antifraud, antitrust, anti-money laundering,
of loss contingencies based on the likelihood of occurrence of the contingent
employment and other statutory and common laws. Certain of these actual
future event or events. It distinguishes among degrees of likelihood using the
or threatened legal actions and proceedings include claims for substantial
following three terms: “probable,” meaning that “the future event or events
or indeterminate compensatory or punitive damages, or for injunctive relief,
are likely to occur”; “remote,” meaning that “the chance of the future event
and in some instances seek recovery on a class-wide basis.
or events occurring is slight”; and “reasonably possible,” meaning that “the
In the ordinary course of business, Citigroup and Related Parties also
chance of the future event or events occurring is more than remote but less
are subject to governmental and regulatory examinations, information-
than likely.” These three terms are used below as defined in ASC 450.
gathering requests, investigations and proceedings (both formal and
Accruals. ASC 450 requires accrual for a loss contingency when it is
informal), certain of which may result in adverse judgments, settlements,
“probable that one or more future events will occur confirming the fact
fines, penalties, restitution, disgorgement, injunctions or other relief. In
of loss” and “the amount of the loss can be reasonably estimated.” In
addition, certain affiliates and subsidiaries of Citigroup are banks, registered
accordance with ASC 450, Citigroup establishes accruals for contingencies,
broker-dealers, futures commission merchants, investment advisors or
including any litigation, regulatory or tax matters disclosed herein, when
other regulated entities and, in those capacities, are subject to regulation
Citigroup believes it is probable that a loss has been incurred and the amount
by various U.S., state and foreign securities, banking, commodity futures,
of the loss can be reasonably estimated. When the reasonable estimate of
consumer protection and other regulators. In connection with formal and
the loss is within a range of amounts, the minimum amount of the range
informal inquiries by these regulators, Citigroup and such affiliates and
is accrued, unless some higher amount within the range is a better estimate
subsidiaries receive numerous requests, subpoenas and orders seeking
than any other amount within the range. Once established, accruals are
documents, testimony and other information in connection with various
adjusted from time to time, as appropriate, in light of additional information.
aspects of their regulated activities. From time to time Citigroup and Related
The amount of loss ultimately incurred in relation to those matters may be
Parties also receive grand jury subpoenas and other requests for information
substantially higher or lower than the amounts accrued for those matters.
or assistance, formal or informal, from federal or state law enforcement
Disclosure. ASC 450 requires disclosure of a loss contingency if “there is
agencies including, among others, various United States Attorneys’ Offices,
at least a reasonable possibility that a loss or an additional loss may have
the Asset Forfeiture and Money Laundering Section and other divisions of
been incurred” and there is no accrual for the loss because the conditions
the Department of Justice, the Financial Crimes Enforcement Network of
described above are not met or an exposure to loss exists in excess of the
the United States Department of the Treasury, and the Federal Bureau of
amount accrued. In accordance with ASC 450, if Citigroup has not accrued
Investigation relating to Citigroup and its customers.
for a matter because Citigroup believes that a loss is reasonably possible but
Because of the global scope of Citigroup’s operations and its presence
not probable, or that a loss is probable but not reasonably estimable, and
in countries around the world, Citigroup and Related Parties are subject to
the reasonably possible loss is material, it discloses the loss contingency. In
litigation and governmental and regulatory examinations, information-
addition, Citigroup discloses matters for which it has accrued if it believes a
gathering requests, investigations and proceedings (both formal and
reasonably possible exposure to material loss exists in excess of the amount
informal) in multiple jurisdictions with legal, regulatory and tax regimes
accrued. In accordance with ASC 450, Citigroup’s disclosure includes an
that may differ substantially, and present substantially different risks, from
estimate of the reasonably possible loss or range of loss for those matters as
those Citigroup and Related Parties are subject to in the United States.
to which an estimate can be made. ASC 450 does not require disclosure of an
In some instances, Citigroup and Related Parties may be involved in
estimate of the reasonably possible loss or range of loss where an estimate
proceedings involving the same subject matter in multiple jurisdictions,
cannot be made. Neither accrual nor disclosure is required for losses that are
which may result in overlapping, cumulative or inconsistent outcomes.
deemed remote.
Citigroup seeks to resolve all litigation, regulatory, tax and other matters
in the manner management believes is in the best interests of Citigroup and
its shareholders, and contests liability, allegations of wrongdoing and, where
applicable, the amount of damages or scope of any penalties or other relief
sought as appropriate in each pending matter.

290
 Inherent Uncertainty of the Matters Disclosed. Certain of the matters addition, from time to time an outcome may occur that Citigroup had not
disclosed below involve claims for substantial or indeterminate damages. accounted for in its estimate because it had deemed such an outcome to be
The claims asserted in these matters typically are broad, often spanning a remote. For all of these reasons, the amount of loss in excess of amounts
multiyear period and sometimes a wide range of business activities, and the accrued in relation to matters for which an estimate has been made could be
plaintiffs’ or claimants’ alleged damages frequently are not quantified or substantially higher or lower than the range of loss included in the estimate.
factually supported in the complaint or statement of claim. Other matters Matters as to Which an Estimate Cannot Be Made. For other matters
relate to regulatory investigations or proceedings, as to which there may disclosed below, Citigroup is not currently able to estimate the reasonably
be no objective basis for quantifying the range of potential fine, penalty or possible loss or range of loss. Many of these matters remain in very
other remedy. As a result, Citigroup is often unable to estimate the loss in preliminary stages (even in some cases where a substantial period of time has
such matters, even if it believes that a loss is probable or reasonably possible, passed since the commencement of the matter), with few or no substantive
until developments in the case, proceeding or investigation have yielded legal decisions by the court, tribunal or other authority defining the scope of
additional information sufficient to support a quantitative assessment of the claims, the class (if any) or the potentially available damages or other
the range of reasonably possible loss. Such developments may include, exposure, and fact discovery is still in progress or has not yet begun. In many
among other things, discovery from adverse parties or third parties, rulings of these matters, Citigroup has not yet answered the complaint or statement
by the court on key issues, analysis by retained experts and engagement of claim or asserted its defenses, nor has it engaged in any negotiations with
in settlement negotiations. Depending on a range of factors, such as the the adverse party (whether a regulator, taxing authority or a private party).
complexity of the facts, the novelty of the legal theories, the pace of discovery, For all these reasons, Citigroup cannot at this time estimate the reasonably
the court’s scheduling order, the timing of court decisions and the adverse possible loss or range of loss, if any, for these matters.
party’s, regulator’s or other authority’s willingness to negotiate in good faith Opinion of Management as to Eventual Outcome. Subject to the
toward a resolution, it may be months or years after the filing of a case or foregoing, it is the opinion of Citigroup’s management, based on current
commencement of a proceeding or an investigation before an estimate of the knowledge and after taking into account its current accruals, that the
range of reasonably possible loss can be made. eventual outcome of all matters described in this Note would not likely have
Matters as to Which an Estimate Can Be Made. For some of the matters a material adverse effect on the consolidated financial condition of Citigroup.
disclosed below, Citigroup is currently able to estimate a reasonably possible Nonetheless, given the substantial or indeterminate amounts sought in
loss or range of loss in excess of amounts accrued (if any). For some of the certain of these matters, and the inherent unpredictability of such matters,
matters included within this estimation, an accrual has been made because an adverse outcome in certain of these matters could, from time to time, have
a loss is believed to be both probable and reasonably estimable, but an a material adverse effect on Citigroup’s consolidated results of operations or
exposure to loss exists in excess of the amount accrued. In these cases, the cash flows in particular quarterly or annual periods.
estimate reflects the reasonably possible range of loss in excess of the accrued
ANZ Underwriting Matter
amount. For other matters included within this estimation, no accrual has
On February 11, 2022, the Australian Commonwealth Director of Public
been made because a loss, although estimable, is believed to be reasonably
Prosecutions discontinued the prosecution of charges that were brought
possible, but not probable; in these cases, the estimate reflects the reasonably
against Citigroup Global Markets Australia Pty Limited (CGMA) and two
possible loss or range of loss. As of December 31, 2021, Citigroup estimates
Citi employees for alleged criminal cartel offenses in relation to CGMA’s
that the reasonably possible unaccrued loss for these matters ranges up to
role as a joint underwriter and lead manager with other banks in the 2015
approximately $1.5 billion in the aggregate.
institutional share placement by Australia and New Zealand Banking Group
These estimates are based on currently available information. As available
Limited (ANZ). The case, captioned R v. CITIGROUP GLOBAL MARKETS
information changes, the matters for which Citigroup is able to estimate will
AUSTRALIA PTY LIMITED is before the Federal Court in New South Wales,
change, and the estimates themselves will change. In addition, while many
Australia. Additional information concerning this action is publicly available
estimates presented in financial statements and other financial disclosures
in court filings under the docket number NSD 1316–NSD 1324/2020.
involve significant judgment and may be subject to significant uncertainty,
estimates of the range of reasonably possible loss arising from litigation,
regulatory and tax proceedings are subject to particular uncertainties.
For example, at the time of making an estimate, (i) Citigroup may have
only preliminary, incomplete or inaccurate information about the facts
underlying the claim, (ii) its assumptions about the future rulings of the
court, other tribunal or authority on significant issues, or the behavior and
incentives of adverse parties, regulators or other authorities, may prove to
be wrong and (iii) the outcomes it is attempting to predict are often not
amenable to the use of statistical or other quantitative analytical tools. In

291
Facilitation Trading Matters District Court for the Northern District of California (later transferred to
On January 28, 2022, the Securities and Futures Commission of Hong Kong the United States District Court for the Southern District of New York).
(SFC) entered into a resolution with Citigroup Global Markets Asia Limited Subsequently, plaintiffs filed an amended class action complaint against
(CGMAL) of the SFC’s investigation into CGMAL’s equity sales trading desks Citigroup, Citibank and Citicorp as defendants. Plaintiffs allege that they
in connection with facilitation trades. As part of the resolution, CGMAL suffered losses as a result of defendants’ alleged manipulation of, and
agreed to pay a civil penalty of $44.6 million. Citigroup is cooperating with collusion with respect to, the foreign exchange market. Plaintiffs assert
related investigations and inquiries by other government and regulatory claims under federal and California antitrust and consumer protection
agencies in Asia Pacific countries and elsewhere. laws, and seek compensatory damages, treble damages and declaratory and
injunctive relief. Additional information concerning this action is publicly
Foreign Exchange Matters
available in court filings under the docket numbers 15-CV-2290 (N.D. Cal.)
Regulatory Actions: Government and regulatory agencies in the U.S. and
(Chhabria, J.) and 15-CV-9300 (S.D.N.Y.) (Schofield, J.).
other jurisdictions are conducting investigations or making inquiries
In 2019, two applications, captioned MICHAEL O’HIGGINS FX CLASS
regarding Citigroup’s foreign exchange business. Citigroup is cooperating
REPRESENTATIVE LIMITED v. BARCLAYS BANK PLC AND OTHERS and
with these and related investigations and inquiries.
PHILLIP EVANS v. BARCLAYS BANK PLC AND OTHERS, were made to the
Antitrust and Other Litigation: In 2018, a number of institutional
U.K.’s Competition Appeal Tribunal requesting permission to commence
investors who opted out of the previously disclosed August 2018 final
collective proceedings against Citigroup, Citibank and other defendants.
settlement filed an action against Citigroup, Citibank, Citigroup Global
The applications seek compensatory damages for losses alleged to have
Markets Inc. (CGMI) and other defendants, captioned ALLIANZ GLOBAL
arisen from the actions at issue in the European Commission’s foreign
INVESTORS, ET AL. v. BANK OF AMERICA CORP., ET AL., in the United
exchange spot trading infringement decision (European Commission
States District Court for the Southern District of New York. Plaintiffs allege
Decision of May 16, 2019 in Case AT.40135-FOREX (Three Way Banana Split)
that defendants manipulated, and colluded to manipulate, the foreign
C(2019) 3631 final). Additional information concerning these actions is
exchange markets. Plaintiffs assert claims under the Sherman Act and unjust
publicly available in court filings under the case numbers 1329/7/7/19 and
enrichment claims, and seek consequential and punitive damages and other
1336/7/7/19.
forms of relief. On July 28, 2020, plaintiffs filed a third amended complaint.
In 2019, a putative class action was filed against Citibank and other
Additional information concerning this action is publicly available in court
defendants, captioned J WISBEY & ASSOCIATES PTY LTD v. UBS AG & ORS, in
filings under the docket number 18-CV-10364 (S.D.N.Y.) (Schofield, J.).
the Federal Court of Australia. Plaintiffs allege that defendants manipulated
In 2018, a group of institutional investors issued a claim against Citigroup,
the foreign exchange markets. Plaintiffs assert claims under antitrust laws,
Citibank and other defendants, captioned ALLIANZ GLOBAL INVESTORS GMBH
and seek compensatory damages and declaratory and injunctive relief.
AND OTHERS v. BARCLAYS BANK PLC AND OTHERS, in the High Court of
Additional information concerning this action is publicly available in court
Justice in London. Claimants allege that defendants manipulated, and colluded
filings under the docket number VID567/2019.
to manipulate, the foreign exchange market in violation of EU and U.K.
In 2019, two motions for certification of class actions filed against
competition laws. In December 2021, the High Court ordered that the case be
Citigroup, Citibank and Citicorp and other defendants were consolidated,
transferred to the U.K.’s Competition Appeal Tribunal. Additional information
under the caption GERTLER, ET AL. v. DEUTSCHE BANK AG, in the Tel Aviv
concerning this action is publicly available in court filings under the case
Central District Court in Israel. Plaintiffs allege that defendants manipulated
number CL-2018-000840 in the High Court and under the case number
the foreign exchange markets. Citibank’s motion to dismiss plaintiffs’
1430/5/7/22 (T) in the Competition Appeal Tribunal.
petition for certification was denied on April 12, 2021. A motion for leave to
In 2015, a putative class of consumers and businesses in the U.S. who
appeal this decision is currently pending before the Supreme Court of Israel.
directly purchased supracompetitive foreign currency at benchmark
Additional information concerning this action is publicly available in court
exchange rates filed an action against Citigroup and other defendants,
filings under the docket number CA 29013-09-18.
captioned NYPL v. JPMORGAN CHASE & CO., ET AL., in the United States

292
Hong Kong Private Bank Litigation seeking damages and a putative class seeking injunctive relief. Amended
In 2007, a claim was filed in the High Court of Hong Kong claiming damages or new complaints on behalf of the putative classes and various individual
of over $51 million against Citibank. The case, captioned PT ASURANSI merchants were subsequently filed, including a further amended complaint
TUGU PRATAMA INDONESIA TBK v. CITIBANK N.A., was dismissed in on behalf of a putative damages class and a new complaint on behalf of a
2018 by the Hong Kong Court of First Instance on grounds that the claim putative injunctive class, both of which named Citigroup and Related Parties.
was time-barred. Plaintiff has appealed the court’s dismissal. Additional In addition, numerous merchants have filed amended or new complaints
information concerning this action is publicly available in court filings against Visa, MasterCard, and in some instances one or more issuing banks,
under the docket number CACV 548/2018. including Citigroup and affiliates.
In 2019, the district court granted the damages class plaintiffs’ motion
Interbank Offered Rates-Related Litigation
for final approval of a new settlement with the defendants. The settlement
In May 2019, three putative class actions filed against Citigroup, Citibank,
involves the damages class only and does not settle the claims of the
CGMI and other defendants were consolidated, under the caption IN RE ICE
injunctive relief class or any actions brought on a non-class basis by
LIBOR ANTITRUST LITIGATION, in the United States District Court for the
individual merchants. The settlement provides for a cash payment to the
Southern District of New York. Plaintiffs allege that defendants suppressed
damages class of $6.24 billion, later reduced by $700 million based on the
ICE LIBOR. Plaintiffs assert claims under the Sherman Act, the Clayton Act,
transaction volume of class members that opted out from the settlement.
and unjust enrichment, and seek compensatory damages, disgorgement,
Several merchants and merchant groups have appealed the final approval
and treble damages. In March 2020, the court granted defendants’ motion to
order. On September 27, 2021, the court granted the injunctive relief class
dismiss the action for failure to state a claim, which plaintiffs appealed to the
plaintiffs’ motion to certify a non-opt-out class. Additional information
United States Court of Appeals for the Second Circuit. Additional information
concerning these consolidated actions is publicly available in court filings
concerning this action is publicly available in court filings under the docket
under the docket number MDL 05-1720 (E.D.N.Y.) (Brodie, J.).
numbers 19-CV-439 (S.D.N.Y.) (Daniels, J.) and 20-1492 (2d Cir.).
In August 2020, individual borrowers and consumers of loans and credit Interest Rate and Credit Default Swap Matters
cards filed an action against Citigroup, Citibank, CGMI and other defendants, Regulatory Actions: The Commodity Futures Trading Commission (CFTC)
captioned MCCARTHY, ET AL. v. INTERCONTINENTAL EXCHANGE, INC., ET is conducting an investigation into alleged anticompetitive conduct in
AL., in the United States District Court for the Northern District of California. the trading and clearing of interest rate swaps (IRS) by investment banks.
Plaintiffs allege that defendants conspired to fix ICE LIBOR, assert claims Citigroup is cooperating with the investigation.
under the Sherman Act and the Clayton Act, and seek declaratory relief, Antitrust and Other Litigation: Beginning in 2015, Citigroup, Citibank,
injunctive relief, and treble damages. Additional information concerning this CGMI, CGML and numerous other parties were named as defendants in
action is publicly available in court filings under the docket number 20-CV- a number of industry-wide putative class actions related to IRS trading.
5832 (N.D. Cal.) (Donato, J.). These actions have been consolidated in the United States District Court
for the Southern District of New York under the caption IN RE INTEREST
Interchange Fee Litigation
RATE SWAPS ANTITRUST LITIGATION. The actions allege that defendants
Beginning in 2005, several putative class actions were filed against Citigroup,
colluded to prevent the development of exchange-like trading for IRS and
Citibank and Citicorp, together with Visa, MasterCard and other banks and
assert federal and state antitrust claims and claims for unjust enrichment.
their affiliates, in various federal district courts and consolidated with other
Also consolidated under the same caption are individual actions filed
related individual cases in a multi-district litigation proceeding in the United
by swap execution facilities, asserting federal and state antitrust claims,
States District Court for the Eastern District of New York. This proceeding
as well as claims for unjust enrichment and tortious interference with
is captioned IN RE PAYMENT CARD INTERCHANGE FEE AND MERCHANT
business relations. Plaintiffs in these actions seek treble damages, fees,
DISCOUNT ANTITRUST LITIGATION.
costs and injunctive relief. Lead plaintiffs in the class action moved for
The plaintiffs, merchants that accept Visa and MasterCard branded
class certification in 2019, and subsequently filed an amended complaint.
payment cards, and various membership associations that claim to represent
Additional information concerning these actions is publicly available in
certain groups of merchants, allege, among other things, that defendants
court filings under the docket numbers 18-CV-5361 (S.D.N.Y.) (Oetken, J.)
have engaged in conspiracies to set the price of interchange and merchant
and 16-MD-2704 (S.D.N.Y.) (Oetken, J.).
discount fees on credit and debit card transactions and to restrain trade
In 2017, Citigroup, Citibank, CGMI, CGML and numerous other parties
unreasonably through various Visa and MasterCard rules governing
were named as defendants in an action filed in the United States District
merchant conduct, all in violation of Section 1 of the Sherman Act and
Court for the Southern District of New York under the caption TERA
certain California statutes. Plaintiffs further alleged violations of Section 2
GROUP, INC., ET AL. v. CITIGROUP, INC., ET AL. The complaint alleges that
of the Sherman Act. Supplemental complaints also were filed against
defendants colluded to prevent the development of exchange-like trading for
defendants in the putative class actions alleging that Visa’s and MasterCard’s
credit default swaps and asserts federal and state antitrust claims and state
respective initial public offerings were anticompetitive and violated Section 7
law tort claims. In January 2020, plaintiffs filed an amended complaint,
of the Clayton Act, and that MasterCard’s initial public offering constituted a
which defendants later moved to dismiss. Additional information concerning
fraudulent conveyance.
this action is publicly available in court filings under the docket number
In 2016, the Court of Appeals reversed the district court’s approval
17-CV-4302 (S.D.N.Y.) (Sullivan, J.).
of a class settlement and remanded for further proceedings. The district
court thereafter appointed separate interim counsel for a putative class

293
Madoff-Related Litigation steps to enforce the judgment in Italian and Belgian courts. Additional
In December 2008, a Securities Investor Protection Act (SIPA) trustee was information concerning these actions is publicly available in court filings
appointed for the SIPA liquidation of Bernard L. Madoff Investment Securities under (in Italy) the docket numbers 4133/2019 and 224/2022 (Court of
LLC (BLMIS), in the United States Bankruptcy Court for the Southern District Milan Enforcement Section) and (in Belgium) 20/3617/A (Brussels Court of
of New York. Beginning in 2010, he commenced actions against multiple First Instance) and 21/AR/1658 (Brussels Court of Appeal).
Citi entities, including Citibank, Citicorp North America, Inc., CGML and In 2015, Parmalat filed a claim in an Italian civil court in Milan claiming
Citibank (Switzerland) AG, seeking recovery of monies that originated damages of €1.8 billion against Citigroup, Citibank and related parties,
at BLMIS and were allegedly received by the Citi entities as subsequent which the court later dismissed on grounds it was duplicative of Parmalat’s
transferees. On August 30, 2021, the United States Court of Appeals for the previously unsuccessful claims. In 2019, the Milan Court of Appeal rejected
Second Circuit reversed the bankruptcy court’s denial of the SIPA trustee’s Parmalat’s appeal of the Milan court’s dismissal, which Parmalat appealed to
motion for leave to amend his complaint and remanded the case to the the Italian Supreme Court. Additional information concerning this action is
bankruptcy court for further proceedings. On January 27, 2022, Citibank publicly available in court filings under the docket number 20598/2019.
and Citicorp North America, Inc. filed a petition for a writ of certiorari in In January 2020, Parmalat, its three directors, and its sole shareholder,
the United States Supreme Court seeking review of the Second Circuit’s Sofil S.a.s., as co-plaintiffs, filed a claim before the Italian civil court in
holding that good faith is an affirmative defense. The SIPA trustee filed an Milan seeking a declaratory judgment that they do not owe compensatory
amended complaint against Citibank, Citicorp North America, Inc. and damages of €990 million to Citibank, which Citibank is seeking to dismiss.
CGML on February 11, 2022. The action against Citibank (Switzerland) AG Additional information concerning this action is publicly available in court
was dismissed on February 23, 2022. Additional information concerning filings under the docket number 8611/2020.
these actions is publicly available in court filings under the docket numbers
Payment Protection Insurance
10-5345, 12-1700 (Bankr. S.D.N.Y.) (Morris, J.); 12-MC-115 (S.D.N.Y.)
Regulators and courts in the U.K. have scrutinized the selling of payment
(Rakoff, J.); and 17-2992, 17-3076, 17-3139, 19-4282, 20-1333 (2d Cir.).
protection insurance (PPI) by financial institutions for several years.
Also beginning in 2010, the British Virgin Islands liquidators of Fairfield
Citibank continues to review customer claims relating to the sale of PPI in
Sentry Limited, whose assets were invested with BLMIS, commenced
the U.K., to grant redress in accordance with the requirements of the U.K.
multiple actions in the United States Bankruptcy Court for the Southern
Financial Conduct Authority, and to defend claims filed in U.K. courts.
District of New York against over 400 defendants, including CGML Citibank
(Switzerland) AG; Citibank, N.A., London; Citivic Nominees Limited; and Record-Keeping Matters
Cititrust (Bahamas) Limited. The actions seek recovery of monies that were The U.S. Securities and Exchange Commission is conducting an
allegedly received directly or indirectly by Citi entities from Fairfield Sentry. investigation of CGMI and other firms regarding compliance with record-
Appeals concerning various dismissed claims and a petition for interlocutory keeping obligations for broker-dealers and investment advisers in connection
review on the one claim remaining are pending before the United States with business-related communications sent over unapproved electronic
District Court for the Southern District of New York, and the remaining claim messaging channels. CGMI is cooperating with the investigation.
is proceeding in the Bankruptcy Court. Citi (Switzerland) AG and Citivic
Revlon-Related Wire Transfer Litigation
Nominees Limited filed a motion to dismiss for lack of personal jurisdiction
In August 2020, Citibank filed actions in the United States District Court
on October 29, 2021. These actions are captioned FAIRFIELD SENTRY LTD.,
for the Southern District of New York, which have been consolidated under
ET AL. v. CGML, ET AL.; FAIRFIELD SENTRY LTD., ET AL. v. CITIBANK NA
the caption IN RE CITIBANK AUGUST 11, 2020 WIRE TRANSFERS. The
LONDON, ET AL.; and FAIRFIELD SENTRY LTD., ET AL. v. ZURICH CAPITAL
actions relate to a payment erroneously made by Citibank in its capacity as
MARKETS COMPANY, ET AL. Additional information is publicly available
administrative agent for a Revlon credit facility. The action seeks the return
in court filings under the docket numbers 10-13164, 10-3496, 10-3622,
of the erroneously transferred funds from certain fund managers. Citibank
10-3634, 11-2770 (Bankr. S.D.N.Y.) (Morris, J.); and 19-3911, 19-4267,
has asserted claims for unjust enrichment, conversion, money had and
19-4396, 19-4484, 19-5106, 19-5135, 21-2997, 21-3243, 21-3526, 21-3529,
received, and payment by mistake. The court issued temporary restraining
21-3530, 21-4307, 21-4498, 21-4496 (S.D.N.Y.) (Broderick, J.).
orders related to the subject funds. On February 16, 2021, the court issued
Parmalat Litigation a judgment in favor of the defendants, which Citibank later appealed in
In 2004, an Italian commissioner appointed to oversee the administration of the United States Court of Appeals for the Second Circuit. In response to
various Parmalat companies filed a complaint against Citigroup, Citibank the district court’s denial of Citibank’s motion to extend the temporary
and related parties, alleging that the defendants facilitated a number of restraining orders, Citibank filed a motion for an injunction with the United
frauds by Parmalat insiders. In 2008, a jury rendered a verdict in Citigroup’s States Court of Appeals. Additional information concerning this action
favor and awarded Citi $431 million. In 2019, the Italian Supreme Court is publicly available in court filings under docket numbers 20-CV-6539
affirmed the decision in the full amount awarded. Citigroup has taken (S.D.N.Y.) (Furman, J.) and 21-487 (2d Cir.).

294
Shareholder Derivative and Securities Litigation defendants’ motion to dismiss, without prejudice. On May 14, 2021, plaintiffs
Beginning in October 2020, four derivative actions were filed in the United filed an amended consolidated complaint. On June 14, 2021, certain
States District Court for the Southern District of New York, purportedly on defendants, including CGMI, moved to dismiss the amended complaint.
behalf of Citigroup (as nominal defendant) against certain of Citigroup’s Additional information concerning this action is publicly available in court
current and former directors. The actions were later consolidated under filings under the docket number 15-MD-2673 (S.D.N.Y.) (Gardephe, J.).
the case name IN RE CITIGROUP INC. SHAREHOLDER DERIVATIVE In 2017, purchasers of supranational, sub-sovereign and agency (SSA)
LITIGATION. The consolidated complaint asserts claims for breach of bonds filed a proposed class action on behalf of direct and indirect purchasers
fiduciary duty, unjust enrichment, and contribution and indemnification in of SSA 296 bonds against Citigroup, Citibank, CGMI, CGML, Citibank Canada,
connection with defendants’ alleged failures to implement adequate internal Citigroup Global Markets Canada, Inc. and other defendants, captioned
controls. In addition, the consolidated complaint asserts derivative claims JOSEPH MANCINELLI, ET AL. v. BANK OF AMERICA CORPORATION, ET
for violations of Sections 10(b) and 14(a) of the Securities Exchange Act of AL., in the Federal Court in Canada. Plaintiffs have filed an amended claim
1934 in connection with statements in Citigroup’s 2019 and 2020 annual that alleges defendants manipulated, and colluded to manipulate, the SSA
meeting proxy statements. On February 8, 2021, the court stayed the action bonds market, asserts claims for breach of the Competition Act, breach of
pending resolution of defendants’ motion to dismiss in IN RE CITIGROUP foreign law, civil conspiracy, unjust enrichment, waiver of tort and breach of
SECURITIES LITIGATION. Additional information concerning this action is contract, and seeks compensatory and punitive damages, among other relief.
publicly available in court filings under the docket number 1:20-CV-09438 Additional information concerning this action is publicly available in court
(S.D.N.Y.) (Nathan, J.). filings under the docket number T-1871-17 (Fed. Ct.).
Beginning in December 2020, two derivative actions were filed in the In 2018, a putative class action was filed against Citigroup, CGMI,
Supreme Court of the State of New York, purportedly on behalf of Citigroup Citigroup Financial Products Inc., Citigroup Global Markets Holdings Inc.,
(as nominal defendant) against certain of Citigroup’s current and former Citibanamex, Grupo Banamex and other banks, captioned IN RE MEXICAN
directors, and certain current and former officers. The actions were later GOVERNMENT BONDS ANTITRUST LITIGATION, in the United States District
consolidated under the case name IN RE CITIGROUP INC. DERIVATIVE Court for the Southern District of New York. The complaint alleges that
LITIGATION, and the court stayed the action pending resolution of defendants colluded in the Mexican sovereign bond market. In September
defendants’ motion to dismiss in IN RE CITIGROUP SECURITIES 2019, the court granted defendants’ motion to dismiss. In December 2019,
LITIGATION. Additional information concerning this action is publicly plaintiffs filed an amended complaint against Citibanamex and other market
available in court filings under the docket number 656759/2020 (N.Y. Sup. makers in the Mexican sovereign bond market. Plaintiffs no longer assert
Ct.) (Schecter, J.). any claims against Citigroup and any other U.S. Citi affiliates. The amended
Beginning in October 2020, three putative class action complaints were complaint alleges a conspiracy to fix prices in the Mexican sovereign
filed in the United States District Court for the Southern District of New York bond market from January 1, 2006 to April 19, 2017, and asserts antitrust
against Citigroup and certain of its current and former officers, asserting and unjust enrichment claims, and seeks treble damages, restitution
violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and injunctive relief. In February 2020, certain defendants, including
in connection with defendants’ alleged misstatements concerning Citigroup’s Citibanamex, moved to dismiss the amended complaint, which the court
internal controls. The actions were later consolidated under the case name later granted. On June 10, 2021, plaintiffs moved for reconsideration of the
IN RE CITIGROUP SECURITIES LITIGATION. The consolidated complaint decision dismissing certain defendants, including Citibanamex, which those
later added certain of Citigroup’s current and former directors as defendants. defendants have jointly opposed. Additional information concerning this
Defendants have moved to dismiss the consolidated amended complaint. action is publicly available in court filings under the docket number 18 Civ.
Additional information concerning this action is publicly available in court 2830 (S.D.N.Y.) (Oetken, J.).
filings under the docket number 1:20-CV-9132 (S.D.N.Y.) (Nathan, J.). On February 9, 2021, purchasers of Euro-denominated sovereign debt
issued by European central governments added CGMI, CGML and others
Sovereign Securities Litigation
as defendants to a putative class action, captioned IN RE EUROPEAN
In 2015, putative class actions filed against CGMI and other defendants were
GOVERNMENT BONDS ANTITRUST LITIGATION, in the United States District
consolidated under the caption IN RE TREASURY SECURITIES AUCTION
Court for the Southern District of New York. Plaintiffs allege that defendants
ANTITRUST LITIGATION in the United States District Court for the Southern
engaged in a conspiracy to inflate prices of European government bonds
District of New York. Plaintiffs allege that defendants colluded to fix U.S.
in primary market auctions and to fix the prices of European government
treasury auction bids by sharing competitively sensitive information ahead
bonds in secondary markets. Plaintiffs assert a claim under the Sherman
of the auctions, and that defendants colluded to boycott and prevent the
Act and seek treble damages and attorneys’ fees. On June 4, 2021, certain
emergence of an anonymous, all-to-all electronic trading platform in the
defendants, including CGMI and CGML, filed a pre-motion letter with the
U.S. Treasuries secondary market. Plaintiffs assert claims under antitrust
court requesting leave to move to dismiss the action. Additional information
laws, and seek damages, including treble damages where authorized
concerning this action is publicly available in court filings under the docket
by statute, and injunctive relief. On March 31, 2021, the court granted
number 19-CV-2601 (S.D.N.Y.) (Marrero, J.).

295
Transaction Tax Matters BALTIMORE v. BANK OF AMERICA CORP., ET AL. filed a consolidated complaint
Citigroup and Citibank are engaged in litigation or examinations with non- naming as defendants Citigroup, Citibank, CGMI, CGML and numerous other
U.S. tax authorities, including in the U.K., India and Germany, concerning industry participants. The consolidated complaint asserts violations of the
the payment of transaction taxes and other non-income tax matters. Sherman Act, as well as claims for breach of contract, breach of fiduciary duty,
and unjust enrichment, and seeks damages and injunctive relief based on
Tribune Company Bankruptcy
allegations that defendants served as remarketing agents for municipal bonds
Certain Citigroup affiliates (along with numerous other parties) have been
called variable rate demand obligations (VRDOs) and colluded to set artificially
named as defendants in adversary proceedings related to the Chapter 11 cases
high VRDO interest rates. In November 2020, the court granted in part and denied
of Tribune Company (Tribune) filed in the United States Bankruptcy Court
in part defendants’ motion to dismiss the consolidated complaint.
for the District of Delaware, asserting claims arising out of the approximate
On June 2, 2021, the Board of Directors of the San Diego Association
$11 billion leveraged buyout of Tribune in 2007. The actions were
of Governments, acting as the San Diego County Regional Transportation
consolidated as IN RE TRIBUNE COMPANY FRAUDULENT CONVEYANCE
Commission, filed a parallel putative class action against the same
LITIGATION and transferred to the United States District Court for the
defendants named in the already pending nationwide consolidated class
Southern District of New York.
action. The two actions were consolidated and on August 6, 2021, the
In the adversary proceeding captioned KIRSCHNER v. FITZSIMONS, ET
plaintiffs in the nationwide putative class action filed a consolidated
AL., the litigation trustee, as successor plaintiff to the unsecured creditors
amended complaint, captioned THE CITY OF PHILADELPHIA, MAYOR AND
committee, seeks to avoid and recover as actual fraudulent transfers the
CITY COUNCIL OF BALTIMORE, THE BOARD OF DIRECTORS OF THE SAN
transfers of Tribune stock that occurred as a part of the leveraged buyout.
DIEGO ASSOCIATION OF GOVERNMENTS, ACTING AS THE SAN DIEGO
Several Citigroup affiliates, along with numerous other parties, were named
COUNTY REGIONAL TRANSPORTATION COMMISSION v. BANK OF AMERICA
as shareholder defendants and were alleged to have tendered Tribune stock
CORP., ET AL. On September 14, 2021, defendants moved to dismiss the
to Tribune as a part of the buyout. In 2017, the United States District Court
consolidated amended complaint in part. Additional information concerning
for the Southern District of New York dismissed the actual fraudulent transfer
this action is publicly available in court filings under the docket number
claim against the shareholder defendants, including the Citigroup affiliates.
19-CV-1608 (S.D.N.Y.) (Furman, J.).
In 2019, the litigation trustee filed an appeal to the United States Court of
Appeals for the Second Circuit. Wind Farm Litigations
CGMI was named as a defendant in a separate action, KIRSCHNER v. Beginning in March 2021, six wind farms in Texas commenced actions in
CGMI, in connection with its role as advisor to Tribune. In 2019, the court New York and Texas state courts for declaratory judgments and breach of
dismissed the action, which the litigation trustee appealed to the United contract, asserting that the February 2021 winter storm in Texas excused
States Court of Appeals for the Second Circuit. their performance to deliver energy to Citi Energy Inc. (CEI) under the
On August 20, 2021, the United States Court of Appeals for the Second force majeure provisions of their contracts with CEI. In addition, the wind
Circuit issued its decision in the consolidated appeals in KIRSCHNER v. farms sought temporary restraining orders and/or preliminary injunctions,
FITZSIMONS and KIRSCHNER v. CGMI. In the FITZSIMONS action, the preventing CEI from exercising remedies under the contracts.
Second Circuit affirmed the dismissal of the actual fraudulent transfer claim Preliminary injunctions were denied with respect to five of the six wind
against the shareholder defendants, including the Citigroup affiliates. In farms: the New York court denied preliminary injunctions with respect to
the CGMI action, the Second Circuit affirmed the dismissal of all claims the Stephens Ranch I and Stephens Ranch II wind farms; the Texas court
against CGMI except for the claim of constructive fraudulent conveyance. denied preliminary injunctions with respect to the Flat Top, Shannon and
As to that claim, the Second Circuit vacated the dismissal and remanded to Midway wind farms. Later in 2021, Stephens Ranch I, Stephens Ranch II and
the district court for further proceedings on that claim and other claims that Flat Top each voluntarily dismissed its action with prejudice. The Mariah
remain against certain other defendants that are not Citigroup affiliates. On del Norte wind farm voluntarily dismissed its action with prejudice on
November 29, 2021, on remand from the Second Circuit, the litigation trustee February 18, 2022. A motion to dismiss the remaining Shannon and Midway
notified the United States District Court for the Southern District of New York actions remains pending. Additional information concerning these actions is
that it was voluntarily dismissing all claims against CGMI pursuant to a publicly available in court filings under docket numbers 652078/2021 (Sup.
settlement agreement. The district court approved the voluntary dismissal Ct. N.Y. Cnty.) (Reed, J.), 2021-01387 (1st Dep’t), 652312/2021 (Sup. Ct. N.Y.
on December 10, 2021. Additional information concerning these actions is Cnty.) (Reed, J.), 2021-23588 (District Court Harris County TX) (Schaffer, J.),
publicly available in court filings under the docket numbers 12 MC 2296 and 2021-26150 (District Court Harris County TX) (Engelhart, J.).
(S.D.N.Y.) (Cote, J.), 11 MD 2296 (S.D.N.Y.) (Cote, J.), 19-0449 (2d Cir.), and
Settlement Payments
19-3049 (2d Cir.).
Payments required in settlement agreements described above have been
Variable Rate Demand Obligation Litigation made or are covered by existing litigation or other accruals.
In 2019, the plaintiffs in the consolidated actions CITY OF PHILADELPHIA
v. BANK OF AMERICA CORP, ET AL. and MAYOR AND CITY COUNCIL OF

296
28. CONDENSED CONSOLIDATING FINANCIAL
STATEMENTS

Citigroup’s Registration Statement on Form S-3 on file with the SEC

includes its wholly owned subsidiary, Citigroup Global Markets Holdings Inc.
(CGMHI), as a co-registrant. Any securities issued by CGMHI under the Form
S-3 will be fully and unconditionally guaranteed by Citigroup.
The following are the Condensed Consolidating Statements of Income
and Comprehensive Income for the years ended December 31, 2021, 2020
and 2019, Condensed Consolidating Balance Sheet as of December 31, 2021
and 2020 and Condensed Consolidating Statement of Cash Flows for the
years ended December 31, 2021, 2020 and 2019 for Citigroup Inc., the parent
holding company (Citigroup parent company), CGMHI, other Citigroup
subsidiaries and eliminations and total consolidating adjustments. “Other
Citigroup subsidiaries and eliminations” includes all other subsidiaries of
Citigroup, intercompany eliminations and income (loss) from discontinued
operations. “Consolidating adjustments” includes Citigroup parent company
elimination of distributed and undistributed income of subsidiaries and
investment in subsidiaries.
These Condensed Consolidating Financial Statements have been prepared
and presented in accordance with SEC Regulation S-X Rule 3-10, “Financial
Statements of Guarantors and Issuers of Guaranteed Securities Registered or
Being Registered.”
These Condensed Consolidating Financial Statements are presented for
purposes of additional analysis, but should be considered in relation to the
Consolidated Financial Statements of Citigroup taken as a whole.

297
Condensed Consolidating Statements of Income and Comprehensive Income
Year ended December 31, 2021
Citigroup Other Citigroup
parent subsidiaries and Consolidating Citigroup
In millions of dollars company CGMHI eliminations adjustments consolidated
Revenues
Dividends from subsidiaries $ 6,482 $ — $ — $ (6,482) $ —
Interest revenue — 3,566 46,909 — 50,475
Interest revenue—intercompany 3,757 531 (4,288) — —
Interest expense 4,791 778 2,412 — 7,981
Interest expense—intercompany 294 1,320 (1,614) — —
Net interest income $ (1,328) $ 1,999 $ 41,823 $ — $ 42,494
Commissions and fees $ — $ 7,770 $ 5,902 $ — $ 13,672
Commissions and fees—intercompany (36) 407 (371) — —
Principal transactions 976 10,140 (962) — 10,154
Principal transactions—intercompany (1,375) (6,721) 8,096 — —
Other revenue (64) 576 5,052 — 5,564
Other revenue—intercompany (133) (60) 193 — —
Total non-interest revenues $ (632) $ 12,112 $ 17,910 $ — $ 29,390
Total revenues, net of interest expense $ 4,522 $ 14,111 $ 59,733 $ (6,482) $ 71,884
Provisions for credit losses and for benefits and claims $ — $ 6 $ (3,784) $ — $ (3,778)
Operating expenses
Compensation and benefits $ 10 $ 5,251 $ 19,873 $ — $ 25,134
Compensation and benefits—intercompany 69 — (69) — —
Other operating 83 2,868 20,108 — 23,059
Other operating—intercompany 11 2,826 (2,837) — —
Total operating expenses $ 173 $ 10,945 $ 37,075 $ — $ 48,193
Equity in undistributed income of subsidiaries $ 16,596 $ — $ — $ (16,596) $ —
Income from continuing operations before income taxes $ 20,945 $ 3,160 $ 26,442 $ (23,078) $ 27,469
Provision (benefit) for income taxes (1,007) 625 5,833 — 5,451
Income from continuing operations $ 21,952 $ 2,535 $ 20,609 $ (23,078) $ 22,018
Income (loss) from discontinued operations, net of taxes — — 7 — 7
Net income before attribution of noncontrolling interests $ 21,952 $ 2,535 $ 20,616 $ (23,078) $ 22,025
Noncontrolling interests — — 73 — 73
Net income $ 21,952 $ 2,535 $ 20,543 $ (23,078) $ 21,952
Comprehensive income
Add: Other comprehensive income (loss) $ (6,707) $ (76) $ (450) $ 526 $ (6,707)
Total Citigroup comprehensive income $ 15,245 $ 2,459 $ 20,093 $ (22,552) $ 15,245
Add: Other comprehensive income attributable to noncontrolling interests $ — $ — $ (99) $ — $ (99)
Add: Net income attributable to noncontrolling interests — — 73 — 73
Total comprehensive income $ 15,245 $ 2,459 $ 20,067 $ (22,552) $ 15,219

298
Condensed Consolidating Statements of Income and Comprehensive Income
Year ended December 31, 2020
Citigroup Other Citigroup
parent subsidiaries and Consolidating Citigroup
In millions of dollars company CGMHI eliminations adjustments consolidated
Revenues
Dividends from subsidiaries $ 2,355 $ — $ — $ (2,355) $ —
Interest revenue — 5,364 52,725 — 58,089
Interest revenue—intercompany 4,162 920 (5,082) — —
Interest expense 4,992 1,989 6,357 — 13,338
Interest expense—intercompany 502 2,170 (2,672) — —
Net interest income $ (1,332) $ 2,125 $43,958 $ — $ 44,751
Commissions and fees $ — $ 6,216 $ 5,169 $ — $ 11,385
Commissions and fees—intercompany (36) 290 (254) — —
Principal transactions (1,254) (4,252) 19,391 — 13,885
Principal transactions—intercompany 693 9,064 (9,757) — —
Other revenue (127) 706 4,901 — 5,480
Other revenue—intercompany 111 23 (134) — —
Total non-interest revenues $ (613) $12,047 $19,316 $ — $ 30,750
Total revenues, net of interest expense $ 410 $14,172 $63,274 $ (2,355) $ 75,501
Provisions for credit losses and for benefits and claims $ — $ (1) $17,496 $ — $ 17,495
Operating expenses
Compensation and benefits $ (5) $ 4,941 $17,278 $ — $ 22,214
Compensation and benefits—intercompany 191 — (191) — —
Other operating 37 2,393 19,730 — 22,160
Other operating—intercompany 15 2,317 (2,332) — —
Total operating expenses $ 238 $ 9,651 $34,485 $ — $ 44,374
Equity in undistributed income of subsidiaries $ 9,894 $ — $ — $ (9,894) $ —
Income from continuing operations before income taxes $10,066 $ 4,522 $11,293 $(12,249) $ 13,632
Provision (benefit) for income taxes (981) 1,249 2,257 — 2,525
Income from continuing operations $11,047 $ 3,273 $ 9,036 $(12,249) $ 11,107
Income (loss) from discontinued operations, net of taxes — — (20) — (20)
Net income (loss) before attribution of noncontrolling interests $11,047 $ 3,273 $ 9,016 $(12,249) $ 11,087
Noncontrolling interests — — 40 — 40
Net income $11,047 $ 3,273 $ 8,976 $(12,249) $ 11,047
Comprehensive income
Add: Other comprehensive income (loss) $ 4,260 $ (223) $ 4,244 $ (4,021) $ 4,260
Total Citigroup comprehensive income $15,307 $ 3,050 $13,220 $(16,270) $ 15,307
Add: Other comprehensive income attributable to noncontrolling interests $ — $ — $ 26 $ — $ 26
Add: Net income attributable to noncontrolling interests — — 40 — 40
Total comprehensive income $15,307 $ 3,050 $13,286 $(16,270) $ 15,373

299
Condensed Consolidating Statements of Income and Comprehensive Income
Year ended December 31, 2019
Citigroup Other Citigroup
parent subsidiaries and Consolidating Citigroup
In millions of dollars company CGMHI eliminations adjustments consolidated
Revenues
Dividends from subsidiaries $23,347 $ — $ — $(23,347) $ —
Interest revenue — 10,661 65,849 — 76,510
Interest revenue—intercompany 5,091 1,942 (7,033) — —
Interest expense 4,949 7,010 16,423 — 28,382
Interest expense—intercompany 1,038 4,243 (5,281) — —
Net interest income $ (896) $ 1,350 $47,674 $ — $ 48,128
Commissions and fees $ — $ 5,265 $ 6,481 $ — $ 11,746
Commissions and fees—intercompany (21) 354 (333) — —
Principal transactions (2,537) 277 11,152 — 8,892
Principal transactions—intercompany 1,252 2,464 (3,716) — —
Other revenue 767 832 4,702 — 6,301
Other revenue—intercompany (55) 102 (47) — —
Total non-interest revenues $ (594) $ 9,294 $18,239 $ — $ 26,939
Total revenues, net of interest expense $21,857 $10,644 $65,913 $(23,347) $ 75,067
Provisions for credit losses and for benefits and claims $ — $ — $ 8,383 $ — $ 8,383
Operating expenses
Compensation and benefits $ 32 $ 4,680 $16,721 $ — $ 21,433
Compensation and benefits—intercompany 134 — (134) — —
Other operating (16) 2,326 19,040 — 21,350
Other operating—intercompany 20 2,410 (2,430) — —
Total operating expenses $ 170 $ 9,416 $33,197 $ — $ 42,783
Equity in undistributed income of subsidiaries $ (3,620) $ — $ — $ 3,620 $ —
Income from continuing operations before income taxes $18,067 $ 1,228 $24,333 $(19,727) $ 23,901
Provision (benefit) for income taxes (1,334) 176 5,588 — 4,430
Income from continuing operations $19,401 $ 1,052 $18,745 $(19,727) $ 19,471
Income (loss) from discontinued operations, net of taxes — — (4) — (4)
Net income before attribution of noncontrolling interests $19,401 $ 1,052 $18,741 $(19,727) $ 19,467
Noncontrolling interests — — 66 — 66
Net income $19,401 $ 1,052 $18,675 $(19,727) $ 19,401
Comprehensive income
Add: Other comprehensive income (loss) $ 852 $ (651) $ 1,600 $ (949) $ 852
Total Citigroup comprehensive income $20,253 $ 401 $20,275 $(20,676) $ 20,253
Add: Other comprehensive income attributable to noncontrolling interests $ — $ — $ — $ — $ —
Add: Net income attributable to noncontrolling interests — — 66 — 66
Total comprehensive income $20,253 $ 401 $20,341 $(20,676) $ 20,319

300
This page intentionally left blank.

301
Condensed Consolidating Balance Sheet

December 31, 2021

Other
Citigroup
Citigroup subsidiaries
parent and Consolidating Citigroup
In millions of dollars company CGMHI eliminations adjustments consolidated
Assets
Cash and due from banks $ — $ 834 $ 26,681 $ — $ 27,515
Cash and due from banks—intercompany 17 6,890 (6,907) — —
Deposits with banks, net of allowance — 7,936 226,582 — 234,518
Deposits with banks—intercompany 3,500 11,005 (14,505) — —
Securities borrowed and purchased under resale agreements — 269,608 57,680 — 327,288
Securities borrowed and purchased under resale agreements—intercompany — 23,362 (23,362) — —
Trading account assets 248 189,841 141,856 — 331,945
Trading account assets—intercompany 1,215 1,438 (2,653) — —
Investments, net of allowance 1 224 512,597 — 512,822
Loans, net of unearned income — 2,293 665,474 — 667,767
Loans, net of unearned income—intercompany — — — — —
Allowance for credit losses on loans (ACLL) — — (16,455) — (16,455)
Total loans, net $ — $ 2,293 $ 649,019 $ — $ 651,312
Advances to subsidiaries $142,144 $ — $ (142,144) $ — $ —
Investments in subsidiaries 223,303 — — (223,303) —
Other assets, net of allowance(1) 10,589 69,312 126,112 — 206,013
Other assets—intercompany 2,737 60,567 (63,304) — —
Total assets $383,754 $643,310 $1,487,652 $(223,303) $2,291,413
Liabilities and equity
Deposits $ — $ — $1,317,230 $ — $1,317,230
Deposits—intercompany — — — — —
Securities loaned and sold under repurchase agreements — 171,818 19,467 — 191,285
Securities loaned and sold under repurchase agreements—intercompany — 62,197 (62,197) — —
Trading account liabilities 17 122,383 39,129 — 161,529
Trading account liabilities—intercompany 777 500 (1,277) — —
Short-term borrowings — 13,425 14,548 — 27,973
Short-term borrowings—intercompany — 17,230 (17,230) — —
Long-term debt 164,945 61,416 28,013 — 254,374
Long-term debt—intercompany — 76,335 (76,335) — —
Advances from subsidiaries 13,469 — (13,469) — —
Other liabilities, including allowance 2,574 68,206 65,570 — 136,350
Other liabilities—intercompany — 11,774 (11,774) — —
Stockholders’ equity 201,972 38,026 185,977 (223,303) 202,672
Total liabilities and equity $383,754 $643,310 $1,487,652 $(223,303) $2,291,413

(1) Other assets for Citigroup parent company at December 31, 2021 included $30.5 billion of placements to Citibank and its branches, of which $19.5 billion had a remaining term of less than 30 days.

302
Condensed Consolidating Balance Sheet

December 31, 2020

Other
Citigroup
Citigroup subsidiaries
parent and Consolidating Citigroup
In millions of dollars company CGMHI eliminations adjustments consolidated
Assets
Cash and due from banks $ — $ 628 $ 25,721 $ — $ 26,349
Cash and due from banks—intercompany 16 6,081 (6,097) — —
Deposits with banks, net of allowance — 5,224 278,042 — 283,266
Deposits with banks—intercompany 4,500 8,179 (12,679) — —
Securities borrowed and purchased under resale agreements — 238,718 55,994 — 294,712
Securities borrowed and purchased under resale agreements—intercompany — 24,309 (24,309) — —
Trading account assets 307 222,278 152,494 — 375,079
Trading account assets—intercompany(1) 723 2,340 (3,063) — —
Investments, net of allowance 1 374 446,984 — 447,359
Loans, net of unearned income — 2,524 673,359 — 675,883
Loans, net of unearned income—intercompany — — — — —
Allowance for credit losses on loans (ACLL) — — (24,956) — (24,956)
Total loans, net $ — $ 2,524 $ 648,403 $ — $ 650,927
Advances to subsidiaries $152,383 $ — $ (152,383) $ — $ —
Investments in subsidiaries 213,267 — — (213,267) —
Other assets, net of allowance(2) 12,156 60,273 109,969 — 182,398
Other assets—intercompany 2,781 51,489 (54,270) — —
Total assets $386,134 $622,417 $1,464,806 $(213,267) $2,260,090
Liabilities and equity
Deposits $ — $ — $1,280,671 $ — $1,280,671
Deposits—intercompany — — — — —
Securities loaned and sold under repurchase agreements — 184,786 14,739 — 199,525
Securities loaned and sold under repurchase agreements—intercompany — 76,590 (76,590) — —
Trading account liabilities — 113,100 54,927 — 168,027
Trading account liabilities—intercompany(1) 397 1,531 (1,928) — —
Short-term borrowings — 12,323 17,191 — 29,514
Short-term borrowings—intercompany — 12,757 (12,757) — —
Long-term debt 170,563 47,732 53,391 — 271,686
Long-term debt—intercompany — 67,322 (67,322) — —
Advances from subsidiaries 12,975 — (12,975) — —
Other liabilities, including allowance 2,692 55,217 52,558 — 110,467
Other liabilities—intercompany 65 15,378 (15,443) — —
Stockholders’ equity 199,442 35,681 178,344 (213,267) 200,200
Total liabilities and equity $386,134 $622,417 $1,464,806 $(213,267) $2,260,090

(1) The balances of Trading account assets—intercompany and Trading account liabilities—intercompany within CGMHI and within Other Citigroup subsidiaries and eliminations have been revised to reflect the netting
of $7 billion of intercompany derivative and related collateral assets and liabilities subject to enforceable netting agreements. Because the adjustment was limited to transactions between affiliated entities, it had no
impact to Citigroup consolidated.
(2) Other assets for Citigroup parent company at December 31, 2020 included $29.5 billion of placements to Citibank and its branches, of which $24.3 billion had a remaining term of less than 30 days.

303
Condensed Consolidating Statement of Cash Flows
Year ended December 31, 2021
Citigroup Other Citigroup
parent subsidiaries and Consolidating Citigroup
In millions of dollars company CGMHI eliminations adjustments consolidated
Net cash provided by operating activities of continuing operations $ 3,947 $ 43,227 $ 14,075 $— $ 61,249
Cash flows from investing activities of continuing operations
Purchases of investments $ — $ — $(359,158) $— $ (359,158)
Proceeds from sales of investments — — 126,728 — 126,728
Proceeds from maturities of investments — — 142,100 — 142,100
Change in loans — — (1,173) — (1,173)
Proceeds from sales and securitizations of loans — — 2,918 — 2,918
Change in securities borrowed and purchased under agreements to resell — (29,944) (2,632) — (32,576)
Changes in investments and advances—intercompany 8,260 (9,040) 780 — —
Other investing activities — (2) (3,742) — (3,744)
Net cash provided by (used in) investing activities of continuing operations $ 8,260 $ (38,986) $ (94,179) $— $ (124,905)
Cash flows from financing activities of continuing operations
Dividends paid $ (5,198) $ (196) $ 196 $— $ (5,198)
Issuance of preferred stock 3,300 — — — 3,300
Redemption of preferred stock (3,785) — — — (3,785)
Treasury stock acquired (7,601) — — — (7,601)
Proceeds (repayments) from issuance of long-term debt, net (86) 15,071 (19,277) — (4,292)
Proceeds (repayments) from issuance of long-term debt—intercompany, net — 14,410 (14,410) — —
Change in deposits — — 44,966 — 44,966
Change in securities loaned and sold under agreements to repurchase — (27,241) 19,001 — (8,240)
Change in short-term borrowings — 1,102 (2,643) — (1,541)
Net change in short-term borrowings and other advances—intercompany 501 (917) 416 — —
Capital contributions from (to) parent — 71 (71) — —
Other financing activities (337) 12 (12) — (337)
Net cash provided by (used in ) financing activities of continuing operations $ (13,206) $ 2,312 $ 28,166 $— $ 17,272
Effect of exchange rate changes on cash and due from banks $ — $ — $ (1,198) $— $ (1,198)
Change in cash and due from banks and deposits with banks $ (999) $ 6,553 $ (53,136) $— $ (47,582)
Cash and due from banks and deposits with banks at beginning of year 4,516 20,112 284,987 — 309,615
Cash and due from banks and deposits with banks at end of year $ 3,517 $ 26,665 $ 231,851 $— $ 262,033
Cash and due from banks (including segregated cash and other deposits) $ 17 $ 7,724 $ 19,774 $— $ 27,515
Deposits with banks, net of allowance 3,500 18,941 212,077 — 234,518
Cash and due from banks and deposits with banks at end of year $ 3,517 $ 26,665 $ 231,851 $— $ 262,033
Supplemental disclosure of cash flow information for continuing operations
Cash paid (received) during the year for income taxes $ (2,406) $ 919 $ 5,515 $— $ 4,028
Cash paid during the year for interest 3,101 2,210 1,832 — 7,143
Non-cash investing activities
Decrease in net loans associated with significant disposals reclassified to HFS $ — $ — $ 9,945 $— $ 9,945
Transfers to loans HFS (Other assets) from loans — — 7,414 — 7,414
Non-cash financing activities
Decrease in long-term debt associated with significant disposals reclassified to HFS $ — $ — $ 479 $— $ 479
Decrease in deposits associated with significant disposals reclassified to HFS — — 8,407 — 8,407

304
Condensed Consolidating Statement of Cash Flows
Year ended December 31, 2020
Citigroup Other Citigroup
parent subsidiaries and Consolidating Citigroup
In millions of dollars company CGMHI eliminations adjustments consolidated
Net cash provided by (used in) operating activities of continuing operations $ 5,002 $(26,195) $ 572 $— $ (20,621)
Cash flows from investing activities of continuing operations
Purchases of investments $ — $ — $(334,900) $— $(334,900)
Proceeds from sales of investments — — 146,285 — 146,285
Proceeds from maturities of investments — — 124,229 — 124,229
Change in loans — — 14,249 — 14,249
Proceeds from sales and securitizations of loans — — 1,495 — 1,495
Change in securities borrowed and purchased under agreements to resell — (46,044) 2,654 — (43,390)
Changes in investments and advances—intercompany (5,584) (6,917) 12,501 — —
Other investing activities — (54) (3,226) — (3,280)
Net cash used in investing activities of continuing operations $ (5,584) $(53,015) $ (36,713) $— $ (95,312)
Cash flows from financing activities of continuing operations
Dividends paid $ (5,352) $ (172) $ 172 $— $ (5,352)
Issuance of preferred stock 2,995 — — — 2,995
Redemption of preferred stock (1,500) — — — (1,500)
Treasury stock acquired (2,925) — — — (2,925)
Proceeds from issuance of long-term debt, net 16,798 6,349 (10,091) — 13,056
Proceeds (repayments) from issuance of long-term debt—intercompany, net — 3,960 (3,960) — —
Change in deposits — — 210,081 — 210,081
Change in securities loaned and sold under agreements to repurchase — 79,322 (46,136) — 33,186
Change in short-term borrowings — 1,228 (16,763) — (15,535)
Net change in short-term borrowings and other advances—intercompany (7,528) (7,806) 15,334 — —
Other financing activities (411) — — — (411)
Net cash provided by financing activities of continuing operations $ 2,077 $ 82,881 $ 148,637 $— $ 233,595
Effect of exchange rate changes on cash and due from banks $ — $ — $ (1,966) $— $ (1,966)
Change in cash and due from banks and deposits with banks $ 1,495 $ 3,671 $ 110,530 $— $ 115,696
Cash and due from banks and deposits with banks at beginning of year 3,021 16,441 174,457 — 193,919
Cash and due from banks and deposits with banks at end of year $ 4,516 $ 20,112 $ 284,987 $— $ 309,615
Cash and due from banks (including segregated cash and other deposits) $ 16 $ 6,709 $ 19,624 $— $ 26,349
Deposits with banks, net of allowance 4,500 13,403 265,363 — 283,266
Cash and due from banks and deposits with banks at end of year $ 4,516 $ 20,112 $ 284,987 $— $ 309,615
Supplemental disclosure of cash flow information for continuing operations
Cash paid (received) during the year for income taxes $ (1,883) $ 1,138 $ 5,542 $— $ 4,797
Cash paid during the year for interest 2,681 4,516 4,897 — 12,094
Non-cash investing activities
Transfers to loans HFS (Other assets) from loans $ — $ — $ 2,614 $— $ 2,614

305
Condensed Consolidating Statements of Cash Flows
Year ended December 31, 2019
Citigroup Other Citigroup
parent subsidiaries and Consolidating Citigroup
In millions of dollars company CGMHI eliminations adjustments consolidated
Net cash provided by (used in) operating activities of continuing operations $ 25,011 $(35,396) $ (2,452) $— $ (12,837)
Cash flows from investing activities of continuing operations
Purchases of investments $ — $ — $(274,491) $— $(274,491)
Proceeds from sales of investments 5 — 137,168 — 137,173
Proceeds from maturities of investments — — 119,051 — 119,051
Change in loans — — (22,466) — (22,466)
Proceeds from sales and securitizations of loans — — 2,878 — 2,878
Change in securities borrowed and purchased under agreements to resell — 15,811 3,551 — 19,362
Changes in investments and advances—intercompany (1,847) (870) 2,717 — —
Other investing activities — (64) (4,817) — (4,881)
Net cash provided by (used in) investing activities of continuing operations $ (1,842) $ 14,877 $ (36,409) $— $ (23,374)
Cash flows from financing activities of continuing operations
Dividends paid $ (5,447) $ — $ — $— $ (5,447)
Issuance of preferred stock 1,496 — — — 1,496
Redemption of preferred stock (1,980) — — — (1,980)
Treasury stock acquired (17,571) — — — (17,571)
Proceeds (repayments) from issuance of long-term debt, net 1,666 10,389 (3,950) — 8,105
Proceeds (repayments) from issuance of long-term debt—intercompany, net — (7,177) 7,177 — —
Change in deposits — — 57,420 — 57,420
Change in securities loaned and sold under agreements to repurchase — 5,115 (16,544) — (11,429)
Change in short-term borrowings — 7,440 5,263 — 12,703
Net change in short-term borrowings and other advances—intercompany (968) 5,843 (4,875) — —
Capital contributions from (to) parent — (74) 74 — —
Other financing activities (364) (253) 253 — (364)
Net cash provided by (used in) financing activities of continuing operations $(23,168) $ 21,283 $ 44,818 $— $ 42,933
Effect of exchange rate changes on cash and due from banks $ — $ — $ (908) $— $ (908)
Change in cash and due from banks and deposits with banks $ 1 $ 764 $ 5,049 $— $ 5,814
Cash and due from banks and deposits with banks at beginning of year 3,020 15,677 169,408 — 188,105
Cash and due from banks and deposits with banks at end of year $ 3,021 $ 16,441 $ 174,457 $— $ 193,919
Cash and due from banks (including segregated cash and other deposits) $ 21 $ 5,681 $ 18,265 $— $ 23,967
Deposits with banks, net of allowance 3,000 10,760 156,192 — 169,952
Cash and due from banks and deposits with banks at end of year $ 3,021 $ 16,441 $ 174,457 $— $ 193,919
Supplemental disclosure of cash flow information for continuing operations
Cash paid (received) during the year for income taxes $ (393) $ 418 $ 4,863 $— $ $4,888
Cash paid during the year for interest 3,820 12,664 11,417 — 27,901
Non-cash investing activities
Transfers to loans HFS (Other assets) from loans $ — $ — $ 5,500 $— $ 5,500

306
29. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

2021 2020
In millions of dollars, except per share amounts Fourth Third Second First Fourth Third Second First
Revenues, net of interest expense (1)(2)
$17,017 $17,447 $17,753 $19,667 $16,832 $ 17,677 $ 20,036 $ 20,956
Operating expenses(1)(3) 13,532 11,777 11,471 11,413 11,437 11,339 10,730 10,868
Provisions (release) for credit losses and for benefits and claims (465) (192) (1,066) (2,055) (46) 2,384 8,197 6,960
Income from continuing operations before income taxes $ 3,950 $ 5,862 $ 7,348 $10,309 $ 5,441 $ 3,954 $ 1,109 $ 3,128
Income taxes(4) 771 1,193 1,155 2,332 1,116 777 52 580
Income from continuing operations $ 3,179 $ 4,669 $ 6,193 $ 7,977 $ 4,325 $ 3,177 $ 1,057 $ 2,548
Income (loss) from discontinued operations, net of taxes — (1) 10 (2) 6 (7) (1) (18)
Net income before attribution of noncontrolling interests $ 3,179 $ 4,668 $ 6,203 $ 7,975 $ 4,331 $ 3,170 $ 1,056 $ 2,530
Noncontrolling interests 6 24 10 33 22 24 — (6)
Citigroup’s net income $ 3,173 $ 4,644 $ 6,193 $ 7,942 $ 4,309 $ 3,146 $ 1,056 $ 2,536
Earnings per share(5)      
Basic      
Income from continuing operations $ 1.47 $ 2.17 $ 2.86 $ 3.64 $ 1.93 $ 1.37 $ 0.38 $ 1.07
Net income 1.47 2.17 2.87 3.64 1.93 1.37 0.38 1.06
Diluted
Income from continuing operations 1.46 2.15 2.84 3.62 1.92 1.36 0.38 1.06
Net income 1.46 2.15 2.85 3.62 1.92 1.36 0.38 1.06

This Note to the Consolidated Financial Statements is unaudited due to the Company’s individual quarterly results not being subject to an audit.
(1) During the fourth quarter of 2021, Citi reclassified deposit insurance expenses from Interest expense to Other operating expenses for all periods presented. Amounts reclassified for each quarter were $295 million for
4Q21, $293 million for 3Q21, $279 million for 2Q21, $340 million for 1Q21, $333 million for 4Q20, $375 million for 3Q20, $270 million for 2Q20 and $225 million for 1Q20. For additional information, see Note 1 to
the Consolidated Financial Statements.
(2) The third quarter of 2021 includes an approximate $700 million loss on sale (approximately $600 million after-tax) related to Citi’s agreement to sell its consumer banking business in Australia.
(3) The fourth quarter of 2021 includes an approximate $1.052 billion charge (approximately $792 million after-tax) in connection with the voluntary early retirement plan (VERP) related to the announced wind-down of
Citi’s consumer banking business in Korea.
(4) The second quarter of 2021 includes an approximate $450 million benefit in tax rate from a reduction in Citi’s valuation allowance related to its deferred tax assets (DTAs).
(5) Certain securities were excluded from the second quarter of 2020 diluted EPS calculation because they were anti-dilutive. Year-to-date EPS will not equal the sum of the individual quarters because the year-to-date
EPS calculation is a separate calculation, which uses an averaging of shares across each quarter. In addition, due to averaging of shares, quarterly earnings per share may not sum to the totals reported for the full year.

End of Consolidated Financial Statements and Notes to Consolidated Financial Statements

307
FINANCIAL DATA SUPPLEMENT
RATIOS

2021 2020 2019

Return on average assets 0.94% 0.50% 0.98%
Return on average common stockholders’ equity(1) 11.5 5.7 10.3
Return on average total stockholders’ equity(2) 10.9 5.7 9.9
Total average equity to average assets(3) 8.6 8.7 9.9
Dividend payout ratio(4) 20 43 24

(1) Based on Citigroup’s net income less preferred stock dividends as a percentage of average common stockholders’ equity.
(2) Based on Citigroup’s net income as a percentage of average total Citigroup stockholders’ equity.
(3) Based on average Citigroup stockholders’ equity as a percentage of average assets.
(4) Dividends declared per common share as a percentage of net income per diluted share.

AVERAGE DEPOSIT LIABILITIES IN OFFICES OUTSIDE THE U.S.(1)

2021 2020 2019

Average Average Average Average Average Average
In millions of dollars at year end, except ratios interest rate balance interest rate balance interest rate balance
Banks 0.16% $ 42,222 0.10% $130,970 0.59% $ 52,699
Other demand deposits 0.15 412,815 0.33 311,342 1.08 293,209
Other time and savings deposits(2) 0.55 200,194 0.94 210,896 1.28 223,450
Total 0.10% $655,231 0.48% $653,208 1.11% $569,358

(1) Interest rates and amounts include the effects of risk management activities and also reflect the impact of the local interest rates prevailing in certain countries.
(2) Primarily consists of certificates of deposit and other time deposits in denominations of $100,000 or more.

UNINSURED DEPOSITS
The table below shows the estimated amount of uninsured time deposits by maturity profile:
Over 3 Over 6
Under 3 months but months but
months or within 6 within 12 Over 12
In millions of dollars at December 31, 2021 less months months months Total
In U.S. offices (1)

Time deposits in excess of FDIC insurance limits(2) $ 5,779 $2,653 $1,861 $2,950 $13,243
In offices outside the U.S. (1)

Time deposits in excess of foreign jurisdiction insurance limits(3) 57,248 6,471 4,080 1,095 68,894
Total uninsured time deposits(4) $ 63,027 $9,124 $5,941 $4,045 $82,137

(1) The classification between offices in the U.S. and outside the U.S. is based on the domicile of the booking unit, rather than the domicile of the depositor.
(2) The standard insurance amount is $250,000 and $500,000 per depositor, per insured bank, for single and joint account ownership categories, respectively.
(3) The standard insurance amount for time deposits outside the U.S. is based on the insurance limits approved by the regulator in the respective foreign jurisdiction. For certain depositors outside the U.S., Citi has not
considered the account ownership category and other time deposit accounts that the depositors may own when allocating the insurance limits used to determine the uninsured time deposit balances. As a result, the
uninsured time deposit balances disclosed above may differ from actual uninsured balances.
(4) The maturity term is based on the remaining term of the time deposit rather than the original maturity date.

Total uninsured deposits as of December 31, 2021 were $1.082 trillion (see notes 1, 2 and 3 to the table above).

308
SUPERVISION, REGULATION AND OTHER
SUPERVISION AND REGULATION registered as futures commission merchants and commodity pool operators
Citi is subject to regulation under U.S. federal and state laws, as well as with the Commodity Futures Trading Commission (CFTC). Citibank, CGMI,
applicable laws in the other jurisdictions in which it does business. Citigroup Energy Inc., Citigroup Global Markets Europe AG (CGME) and
CGML are also registered as swap dealers with the CFTC (for additional
General information, see below). CGMI is also subject to SEC and CFTC rules that
Citigroup is a registered bank holding company and financial holding specify uniform minimum net capital requirements. Compliance with these
company and is regulated and supervised by the Federal Reserve Board rules could limit those operations of CGMI that require the intensive use of
(FRB). Citigroup’s nationally chartered subsidiary banks, including capital and also limits the ability of broker-dealers to transfer large amounts
Citibank, are regulated and supervised by the Office of the Comptroller of the of capital to parent companies and other affiliates. See “Capital Resources”
Currency (OCC). The Federal Deposit Insurance Corporation (FDIC) also has and Note 18 to the Consolidated Financial Statements for a further discussion
examination authority for banking subsidiaries whose deposits it insures. of capital considerations of Citi’s non-banking subsidiaries.
Overseas branches of Citibank are regulated and supervised by the FRB and
OCC and overseas subsidiary banks by the FRB. These overseas branches and Recent Rules Regarding Swap Dealers/Security-Based Swap Dealers
subsidiary banks are also regulated and supervised by regulatory authorities On July 22, 2020, the CFTC adopted final rules establishing capital and
in the host countries. In addition, the Consumer Financial Protection Bureau financial reporting requirements for swap dealers that took effect in
regulates consumer financial products and services. Citi is also subject to October 2021.
laws and regulations concerning the collection, use, sharing and disposition In addition, the SEC has adopted rules governing the registration and
of certain customer, employee and other personal and confidential regulation of security-based swap dealers. The regulations include requirements
information, including those imposed by the Gramm-Leach-Bliley Act, the related to (i) capital, margin and segregation, (ii) record-keeping, reporting
Fair Credit Reporting Act and the EU General Data Protection Regulation. and notification and (iii) risk management practices for uncleared security
For more information on U.S. and foreign regulation affecting or potentially based swaps and the cross-border application of certain security-based swap
affecting Citi, see “Managing Global Risk—Capital Resources” and requirements. These requirements also took effect in November 2021. Citibank,
“—Liquidity Risk” and “Risk Factors” above. CGML and CGME registered with the SEC as securities-based swap dealers.

Other Bank and Bank Holding Company Regulation Transactions with Affiliates
Citi, including its banking subsidiaries, is subject to regulatory limitations, Transactions between Citi’s U.S. subsidiary depository institutions and their
including requirements as to liquidity, risk-based capital and leverage non-bank affiliates are regulated by the FRB, and are generally required to be
(see “Capital Resources” above and Note 18 to the Consolidated Financial on arm’s-length terms. See “Managing Global Risk—Liquidity Risk” above.
Statements), restrictions on the types and amounts of loans that may be
made and the interest that may be charged, and limitations on investments COMPETITION
that can be made and services that can be offered. The FRB may also expect The financial services industry is highly competitive. Citi’s competitors
Citi to commit resources to its subsidiary banks in certain circumstances. Citi include a variety of financial services and advisory companies, as well as
is also subject to anti-money laundering and financial transparency laws, certain non-financial services firms. Citi competes for clients and capital
including standards for verifying client identification at account opening and (including deposits and funding in the short- and long-term debt markets)
obligations to monitor client transactions and report suspicious activities. with some of these competitors globally and with others on a regional or
product basis. Citi’s competitive position depends on many factors, including,
Securities and Commodities Regulation among others, the value of Citi’s brand name, reputation, the types of clients
Citi conducts securities underwriting, brokerage and dealing activities and geographies served; the quality, range, performance, innovation and
in the U.S. through Citigroup Global Markets Inc. (CGMI), its primary pricing of products and services; the effectiveness of and access to distribution
broker-dealer, and other broker-dealer subsidiaries, which are subject to channels, maintenance of partner relationships, emerging technologies and
regulations of the U.S. Securities and Exchange Commission (SEC), the technology advances, customer service and convenience; the effectiveness
Financial Industry Regulatory Authority and certain exchanges. Citi conducts of transaction execution, interest rates, lending limits and risk appetite;
similar securities activities outside the U.S., subject to local requirements, regulatory constraints and compliance; and changes in the macroeconomic
through various subsidiaries and affiliates, principally Citigroup Global business environment or societal norms. Citi’s ability to compete effectively
Markets Limited in London (CGML), which is regulated principally by the also depends upon its ability to attract new colleagues and retain and
U.K. Financial Conduct Authority and Prudential Regulation Authority motivate existing colleagues, while managing compensation and other
(PRA), and Citigroup Global Markets Japan Inc. in Tokyo, which is regulated costs. For additional information on competitive factors and uncertainties
principally by the Financial Services Agency of Japan. impacting Citi’s businesses, see “Risk Factors—Strategic Risks” above.
Citi also has subsidiaries that are members of futures exchanges and
derivatives clearinghouses. In the U.S., CGMI is a member of the principal
U.S. futures exchanges and clearinghouses, and Citi has subsidiaries that are

309
DISCLOSURE PURSUANT TO SECTION 219 OF THE
IRAN THREAT REDUCTION AND SYRIA HUMAN
RIGHTS ACT
Pursuant to Section 219 of the Iran Threat Reduction and Syria Human
Rights Act of 2012 (Section 219), which added Section 13(r) to the Securities
Exchange Act of 1934, as amended, Citi is required to disclose in its annual
or quarterly reports, as applicable, whether it or any of its affiliates knowingly
engaged in certain activities, transactions or dealings relating to Iran or with
certain individuals or entities that are the subject of sanctions under U.S.
law. Disclosure is generally required even where the activities, transactions
or dealings were conducted in compliance with applicable law. Citi, in
its related quarterly reports on Form 10-Q, did not identify any reportable
activities for the first and third quarters of 2021. Citi identified and reported
certain activities pursuant to Section 219 for the second quarter of 2021.
During the fourth quarter of 2021, Citigroup reported one transaction
pursuant to Section 219. In October 2021, Citigroup’s Russian subsidiary
(Citi Russia), acting as the beneficiary bank, released a payment that had
been initiated by a Russian entity from its account with MB Bank, an entity
designated pursuant to Executive Order 13224, for the benefit of Citi Russia’s
customer. The total value of the payment was RUB 16,533.12 (approximately
USD 224.70), and the transaction was authorized pursuant to a specific
license issued by the Office of Foreign Assets Control on October 1, 2021,
which expired on December 31, 2021. Citi did not realize any fees for the
processing of the payment.

310
UNREGISTERED SALES OF EQUITY SECURITIES, During 2021, Citi distributed $1,040 million in dividends on its
REPURCHASES OF EQUITY SECURITIES outstanding preferred stock. On January 12, 2022, Citi declared preferred
AND DIVIDENDS dividends of approximately $277 million for the first quarter of 2022.
Unregistered Sales of Equity Securities As of February 25, 2022, Citi estimates it will distribute preferred dividends
None. of approximately $238 million, $277 million and $238 million in the second,
third and fourth quarters of 2022, respectively, subject to such dividends
Equity Security Repurchases being declared by the Citi Board of Directors.
As previously announced, Citigroup voluntarily suspended common share For information on the ability of Citigroup’s subsidiary depository
repurchases during the fourth quarter of 2021, in anticipation of the adverse institutions to pay dividends, see Note 18 to the Consolidated
regulatory capital impact resulting from adoption of the Standardized Financial Statements.
Approach for Counterparty Credit Risk (SA-CCR) on January 1, 2022. For
additional information on the adoption of SA-CCR, see “Capital Resources—
Adoption of the Standardized Approach for Counterparty Credit Risk” above.
Accordingly, Citi did not have any share repurchases in the fourth quarter
of 2021, other than repurchases relating to issuances of common stock
related to employee stock ownership plans. During the quarter, pursuant to
Citigroup’s Board of Directors’ authorization, Citi repurchased 1,855 shares
(at an average price of $66.37) of common stock, added to treasury stock,
related to activity on employee stock programs where shares were withheld
to satisfy the employee tax requirements. Citi resumed common share
repurchases in January 2022.
All large banks, including Citi, are subject to limitations on capital
distributions in the event of a breach of any regulatory capital buffers,
including the Stress Capital Buffer, with the degree of such restrictions based
on the extent to which the buffers are breached. For additional information,
see “Capital Resources—Regulatory Capital Buffers” and “Risk Factors—
Strategic Risks” above.

Dividends
Citi paid common dividends of $0.51 per share for the fourth quarter of
2021 and the first quarter of 2022. As previously announced, Citi intends to
maintain its planned capital actions, which include a quarterly common
dividend of at least $0.51 per share, subject to financial and macroeconomic
conditions as well as Board of Directors’ approval.
As discussed above, Citi’s ability to pay common stock dividends is
subject to limitations on capital distributions in the event of a breach of any
regulatory capital buffers, including the Stress Capital Buffer, with the degree
of such restrictions based on the extent to which the buffers are breached. For
additional information, see “Capital Resources—Regulatory Capital Buffers”
and “Risk Factors—Strategic Risks” above.
Any dividend on Citi’s outstanding common stock would also need to be
made in compliance with Citi’s obligations on its outstanding preferred stock.

311
PERFORMANCE GRAPH
Comparison of Five-Year Cumulative Total Return
The following graph and table compare the cumulative total return on Citi’s
common stock with the cumulative total return of the S&P 500 Index and
the S&P Financials Index over the five-year period through December 31,
2021. The graph and table assume that $100 was invested on December 31,
2016 in Citi’s common stock, the S&P 500 Index and the S&P Financials
Index, and that all dividends were reinvested.

Citigroup
S&P 500 Index
S&P Financials Index

250

200

150

100

50
2016 2017 2018 2019 2020 2021

DATE Citigroup S&P 500 Index S&P Financials Index

31-Dec-2016 100.0 100.0 100.0
31-Dec-2017 127.0 121.8 122.2
31-Dec-2018 90.9 116.5 106.3
31-Dec-2019 143.3 153.2 140.4
31-Dec-2020 115.2 181.4 138.0
31-Dec-2021 116.3 233.4 186.4

Note: Citi’s common stock is listed on the NYSE under the ticker symbol “C”
and held by 61,355 common stockholders of record as of January 31, 2022.

312
CORPORATE INFORMATION
EXECUTIVE OFFICERS executive roles across the organization, including CEO of Citi Private
Citigroup’s executive officers as of February 25, 2022 are: Bank, CEO of Citi Holdings and CFO and Head of Strategy and M&A for
Citi’s Global Wealth Management Division;
Name Age Position and office held • Mr. McIntosh joined Citi in his current position in October 2021.
Peter Babej 58 CEO, Asia Pacific Previously, he served as Under Secretary for International Affairs at the
Jane Fraser 54 Chief Executive Officer, Citigroup Inc. U.S. Treasury from 2019 to 2021. From 2017 to 2019, Mr. McIntosh served
Sunil Garg 56 Chief Executive Officer, Citibank, N.A. as U.S. Treasury’s General Counsel. Prior to that, he was a partner in the
David Livingstone 58 CEO, Europe, Middle East and Africa
Mark A. L. Mason 52 Chief Financial Officer
law firm of Sullivan & Cromwell and served in the U.S. White House from
Brent McIntosh 48 General Counsel and Corporate Secretary 2006 until 2009;
Mary McNiff 51 Chief Compliance Officer • Ms. McNiff joined Citi in 2012 and assumed her current position in June
Johnbull Okpara 50 Controller and Chief Accounting Officer 2020. Previously, she served as CEO of Citibank, N.A. from April 2019 to
Karen Peetz 66 Chief Administrative Officer
Anand Selvakesari 54 CEO, Personal Banking and Wealth Management
June 2020 and Chief Auditor of Citi from February 2017 to April 2019.
Edward Skyler 48 Head of Global Public Affairs Prior to taking on that role, Ms. McNiff served as Chief Administrative
Ernesto Torres Cantú 57 CEO, Latin America Officer of Latin America & Mexico and interim Chief Auditor. She also led
Zdenek Turek 57 Chief Risk Officer the Global Transformation initiative within Internal Audit;
Sara Wechter 41 Head of Human Resources
Mike Whitaker 58 Head of Enterprise Operations and Technology
• Mr. Okpara joined Citi in his current position in November 2020.
Paco Ybarra 60 CEO, Institutional Clients Group Previously he served as Managing Director, Global Head of Financial
Planning and Analysis and CFO, Infrastructure Groups at Morgan Stanley
The following executive officers have not held their current executive officer since 2016. Prior to that, Mr. Okpara was Managing Vice President,
positions with Citigroup for at least five years: Finance and Deputy Controller at Capital One Financial Corporation;
• Ms. Peetz joined Citi in her current position in June 2020. Previously, she
• Mr. Babej joined Citi in 2010 and assumed his current position in
served on the Board of Directors of Wells Fargo from 2017 to 2019. Ms.
October 2019. Previously, he served as ICG’s Global Head of the Financial Peetz spent nearly 20 years at BNY Mellon, where she managed several
Institutions Group (FIG) from January 2017 to October 2019 and Global business units and ultimately served as President for five years until her
Co-Head of FIG from 2010 to January 2017. Prior to joining Citi, Mr. departure in 2016. Prior to that, she worked at JPMorgan Chase, where she
Babej served as Co-Head, Financial Institutions—Americas at Deutsche held a variety of management positions during her tenure;
Bank, among other roles;
• Mr. Selvakesari joined Citi in 1991 and assumed his current position in
• Ms. Fraser joined Citi in 2004 and assumed her current position on
January 2021. Previously, he served as Head of the U.S. Consumer Bank
February 26, 2021. Previously, she served as CEO of GCB from October since October 2018 and held various other roles at Citi prior to that,
2019 to December 2020. Before that, she served as CEO of Citi Latin including Head of Consumer Banking for Asia Pacific from 2015 to 2018,
America from June 2015 to October 2019. She held a number of other as well as a number of regional and country roles, including Head of
roles across the organization, including CEO of U.S. Consumer and Consumer Banking for ASEAN and India, leading the consumer banking
Commercial Banking and CitiMortgage, CEO of Citi’s Global Private Bank businesses in Singapore, Malaysia, Indonesia, the Philippines, Thailand
and Global Head of Strategy and M&A; and Vietnam, as well as India;
• Mr. Garg joined Citi in May 1988 and assumed his current position in • Mr. Torres Cantú joined Citi in 1989 and assumed his current position in
February 2021. Previously, he was global CEO of the Commercial Bank October 2019. Previously, he served as CEO of Citibanamex since October
beginning in 2011. Prior to that, Mr. Garg led the U.S. Commercial 2014. He served as CEO of GCB in Mexico from 2006 to 2011 and CEO of
Banking business from 2008 until 2011. In addition, he held various Crédito Familiar from 2003 to 2006. In addition, he previously held roles
other roles at Citi in Operations and Technology, Treasury and Trade in Citibanamex, including Regional Director and Divisional Director;
Solutions, Corporate and Investment Banking and Commercial Banking.
• Mr. Turek joined Citi in 1991 and assumed his current position in
• Mr. Livingstone joined Citi in 2016 and assumed his current position in
December 2020. Previously, he served as CRO for EMEA since February
March 2019. Previously, he served as Citi Country Officer for Australia and 2020 and held various other roles at Citi, including CEO of Citibank
New Zealand since June 2016. Prior to joining Citi, he had a nine-year Europe as well as leading significant franchises across Citi, including in
career at Credit Suisse, where he was Vice Chairman of the Investment Russia, South Africa and Hungary;
Banking and Capital Markets Division for the EMEA region, Head of
• Ms. Wechter joined Citi in 2004 and assumed her current position in
M&A and CEO of Credit Suisse Australia;
July 2018. Previously, she served as Citi’s Head of Talent and Diversity as
• Mr. Mason joined Citi in 2001 and assumed his current position in
well as Chief of Staff to Citi CEO Michael Corbat. She served as Chief of
February 2019. Previously, he served as CFO of ICG since September 2014. Staff to both Michael O’Neill and Richard Parsons during their terms as
He held a number of other senior operational, strategic and financial

313
 Chairman of Citigroup’s Board of Directors. In addition, she held roles Code of Conduct, Code of Ethics
in Citi’s ICG, including Corporate M&A and Strategy and Investment Citi has a Code of Conduct that maintains its commitment to the highest
Banking; standards of conduct. The Code of Conduct is supplemented by a Code
• Mr. Whitaker joined Citi in 2009 and assumed his current position of Ethics for Financial Professionals (including accounting, controllers,
in November 2018. Previously, he served as Head of Operations & financial reporting operations, financial planning and analysis, treasury,
Technology for ICG since September 2014 and held various other roles at capital planning, tax, productivity and strategy, M&A, investor relations
Citi, including Head of Securities & Banking Operations & Technology, and regional/product finance professionals and administrative staff)
Head of ICG Technology and Regional Chief Information Officer; and that applies worldwide. The Code of Ethics for Financial Professionals
• Mr. Ybarra joined Citi in 1987 and assumed his current position in May applies to Citi’s principal executive officer, principal financial officer and
2019. Previously, he served as ICG’s Global Head of Markets and Securities principal accounting officer. Amendments and waivers, if any, to the Code
Services since November 2013. In addition, he has held a number of other of Ethics for Financial Professionals will be disclosed on Citi’s website,
roles across ICG, including Deputy Head of ICG, Global Head of Markets www.citigroup.com.
and Co-Head of Global Fixed Income. Both the Code of Conduct and the Code of Ethics for Financial
Professionals can be found on the Citi website by clicking on “About Us,”
and then “Corporate Governance.” Citi’s Corporate Governance Guidelines
can also be found there, as well as the charters for the Audit Committee,
the Ethics, Conduct and Culture Committee, the Nomination, Governance
and Public Affairs Committee, the Personnel and Compensation Committee
and the Risk Management Committee of Citigroup’s Board of Directors.
These materials are also available by writing to Citigroup Inc., Corporate
Governance, 388 Greenwich Street, 17th Floor, New York, New York 10013.

CITIGROUP BOARD OF DIRECTORS

Ellen M. Costello Jane Fraser Lew W. (Jay) Jacobs, IV James S. Turley

Former President and CEO Chief Executive Officer Former President and Managing Former Chairman and CEO
BMO Financial Corporation and Citigroup Inc. Director Ernst & Young
Former U.S. Country Head Duncan P. Hennes Pacific Investment Management Deborah C. Wright
BMO Financial Group Co-Founder and Partner Company LLC (PIMCO) Former Chairman
Grace E. Dailey Atrevida Partners, LLC Renée J. James Carver Bancorp, Inc.
Former Senior Deputy Comptroller Peter Blair Henry Founder, Chairman and CEO Ernesto Zedillo Ponce de Leon
for Bank Supervision Policy and Chief Dean Emeritus and W. R. Ampere Computing Director, Center for the
National Bank Examiner Berkley Professor of Economics Gary M. Reiner Study of Globalization and
Office of the Comptroller of the and Finance Operating Partner Professor in the Field
Currency (OCC) New York University General Atlantic LLC of International
Barbara Desoer Stern School of Business Diana L. Taylor Economics and Politics
Chair S. Leslie Ireland Former Superintendent of Banks Yale University
Citibank, N.A. Former Assistant Secretary for State of New York
John C. Dugan Intelligence and Analysis
Chair U.S. Department of the Treasury
Citigroup Inc.

314
Signatures The Directors of Citigroup listed below executed a power of attorney
Pursuant to the requirements of Section 13 or 15(d) of the Securities appointing Mark A. L. Mason their attorney-in-fact, empowering him to sign
Exchange Act of 1934, the registrant has duly caused this report to be signed this report on their behalf.
on its behalf by the undersigned, thereunto duly authorized, on the 25th day
Ellen M. Costello Lew W. (Jay) Jacobs, IV
of February, 2022. Grace E. Dailey Renée J. James
Barbara Desoer Gary M. Reiner
Citigroup Inc. John C. Dugan Diana L. Taylor
(Registrant) Duncan P. Hennes James S. Turley
Peter Blair Henry Deborah C. Wright
S. Leslie Ireland Ernesto Zedillo Ponce de Leon

Mark A. L. Mason
Chief Financial Officer
Mark A. L. Mason
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities indicated on the 25th day of February, 2022.

Citigroup’s Principal Executive Officer and a Director:

Jane Fraser

Citigroup’s Principal Financial Officer:

Mark A. L. Mason

Citigroup’s Principal Accounting Officer:

Johnbull E. Okpara

315
GLOSSARY OF TERMS AND ACRONYMS
The following is a list of terms and acronyms that are used in this Annual Report on Form 10-K and other Citigroup presentations.

* Denotes a Citi metric

2021 Annual Report on Form 10-K: Annual report on Form 10-K Benefit obligation: Refers to the projected benefit obligation for
for year ended December 31, 2021, filed with the SEC. pension plans and the accumulated postretirement benefit obligation for
OPEB plans.
90+ days past due delinquency rate*: Represents consumer
loans that are past due by 90 or more days, divided by that period’s total BHC: Bank holding company
EOP loans.
Book value per share*: EOP common equity divided by EOP
ABS: Asset-backed securities common shares outstanding.
ACL: Allowance for credit losses Bps: Basis points. One basis point equals 1/100th of one percent.

ACLL: Allowance for credit losses on loans Branded cards: Citi’s branded-cards business with a portfolio of
proprietary cards (Double Cash, Custom Cash, ThankYou and Value
ACLUC: Allowance for credit losses on unfunded lending commitments
cards) and co-branded cards (including, among others, American Airlines
AFS: Available-for-sale and Costco).
ALCO: Asset Liability Committee Build: A net increase in ACL through the provision for credit losses.
Amortized cost: Amount at which a financing receivable or investment Cards: Citi’s credit cards’ businesses or activities.
is originated or acquired, adjusted for accretion or amortization of premium,
CCAR: Comprehensive Capital Analysis and Review
discount, and net deferred fees or costs, collection of cash, charge-offs,
foreign exchange, and fair value hedge accounting adjustments. For CCO: Chief Compliance Officer
AFS securities, amortized cost is also reduced by any impairment losses
CDS: Credit default swaps
recognized in earnings. Amortized cost is not reduced by the allowance for
credit losses, except where explicitly presented net. CECL: Current Expected Credit Losses

AOCI: Accumulated other comprehensive income (loss) CEO: Chief Executive Officer

ARM: Adjustable rate mortgage(s) CET1 Capital: Common Equity Tier 1 Capital. See “Capital
Resources—Components of Citigroup Capital” above for the components
ASC: Accounting Standards Codification under GAAP issued by the FASB.
of CET1.
ASU: Accounting Standards Update under GAAP issued by the FASB.
CET1 Capital Ratio*: Common Equity Tier 1 Capital ratio. A primary
AUC: Assets under custody regulatory capital ratio representing end-of-period CET1 Capital divided by
total risk-weighted assets.
AUM: Assets under management. Represent assets managed on behalf of
Citi’s clients. CFO: Chief Financial Officer

Available liquidity resources*: Resources available at the balance CFTC: Commodity Futures Trading Commission
sheet date to support Citi’s client and business needs, including HQLA
CGMHI: Citigroup Global Markets Holdings Inc.
assets; additional unencumbered securities, including excess liquidity held
at bank entities that is non-transferable to other entities within Citigroup; Citi: Citigroup Inc.
and available assets not already accounted for within Citi’s HQLA to support
Citibank or CBNA: Citibank, N.A. (National Association)
Federal Home Loan Bank (FHLB) and Federal Reserve Bank discount window
borrowing capacity. Client assets: Represent assets under management as well as custody,
brokerage, administration and deposit accounts.
Basel III: Liquidity and capital rules adopted by the FRB based on an
internationally agreed set of measures developed by the Basel Committee on CLO: Collateralized loan obligations
Banking Supervision.
Collateral-dependent: A loan is considered collateral dependent
Beneficial interests issued by consolidated VIEs: Represents when repayment of the loan is expected to be provided substantially through
the interest of third-party holders of debt, equity securities or other the operation or sale of the collateral when the borrower is experiencing
obligations, issued by VIEs that Citi consolidates. financial difficulty, including when foreclosure is deemed probable based on
borrower delinquency.

316
Commercial Cards: Provides a wide range of payment services to EC: European Commission
corporate and public sector clients worldwide through commercial card
Efficiency ratio*: A ratio signifying how much of a dollar in expenses
products. Services include procurement, corporate travel and entertainment,
(as a percentage) it takes to generate one dollar in revenue. Represents total
expense management services, and business-to-business payment solutions.
operating expenses divided by total revenues, net.
Consent orders: In October 2020, Citigroup and Citibank entered into
EMEA: Europe, Middle East and Africa
consent orders with the Federal Reserve and OCC that require Citigroup and
Citibank to make improvements in various aspects of enterprise-wide risk EOP: End-of-period
management, compliance, data quality management and governance and
EPS*: Earnings per share
internal controls.
ERISA: Employee Retirement Income Security Act of 1974
CRE: Commercial real estate
ETR: Effective tax rate
Credit card spend volume*: Dollar amount of card customers’
purchases, net of returns. Also known as purchase sales. EU: European Union

Credit cycle: A period of time over which credit quality improves, Fannie Mae: Federal National Mortgage Association
deteriorates and then improves again (or vice versa). The duration of a credit
FASB: Financial Accounting Standards Board
cycle can vary from a couple of years to several years.
FDIC: Federal Deposit Insurance Corporation
Credit derivatives: Financial instruments whose value is derived
from the credit risk associated with the debt of a third-party issuer (the Federal Reserve: The Board of the Governors of the Federal
reference entity), which allow one party (the protection purchaser) Reserve System
to transfer that risk to another party (the protection seller). Upon the
FFIEC: Federal Financial Institutions Examination Council
occurrence of a credit event by the reference entity, which may include,
among other events, the bankruptcy or failure to pay its obligations, or FHA: Federal Housing Administration
certain restructurings of the debt of the reference entity, neither party has
FHLB: Federal Home Loan Bank
recourse to the reference entity. The protection purchaser has recourse to the
protection seller for the difference between the face value of the CDS contract FICO: Fair Issac Corporation
and the fair value at the time of settling the credit derivative contract. The
FICO score: A measure of consumer credit risk provided by credit
determination as to whether a credit event has occurred is generally made
bureaus, typically produced from statistical models by Fair Isaac Corporation
by the relevant International Swaps and Derivatives Association (ISDA)
utilizing data collected by the credit bureaus.
Determinations Committee.
FINRA: Financial Industry Regulatory Authority
Critical Audit Matters: Audit matters communicated by KPMG to
Citi’s Audit Committee of the Board of Directors, relating to accounts or Firm: Citigroup Inc.
disclosures that are material to the consolidated financial statements and
FRBNY: Federal Reserve Bank of New York
involved especially challenging, subjective or complex judgments. See
“Report of Independent Registered Public Accounting Firm” above. Freddie Mac: Federal Home Loan Mortgage Corporation

Criticized: Criticized loans, lending-related commitments and derivative Free standing derivatives: A derivative contract entered into either
receivables that are classified as special mention, substandard and doubtful separate and apart from any of the Company’s other financial instruments
categories for regulatory purposes. or equity transactions, or in conjunction with some other transaction and
legally detachable and separately exercisable.
CRO: Chief Risk Officer
FTCs: Foreign tax credit carry-forwards
CVA: Credit valuation adjustment
FTE: Full time employee
Dividend payout ratio*: Represents dividends declared per common
share as a percentage of net income per diluted share. FVA: Funding valuation adjustment

Dodd-Frank Act: Wall Street Reform and Consumer Protection Act FX: Foreign exchange

DPD: Days past due FX translation: The impact of converting non-U.S.-dollar currencies
into U.S. dollars.
DVA: Debit valuation adjustment

317
G7: Group of Seven nations. Countries in the G7 are Canada, France, Master netting agreement: A single agreement with a counterparty
Germany, Italy, Japan, the U.K. and the U.S. that permits multiple transactions governed by that agreement to be
terminated or accelerated and settled through a single payment in a
GAAP or U.S. GAAP: Generally accepted accounting principles in the
single currency in the event of a default (e.g., bankruptcy, failure to make
United States of America.
a required payment or securities transfer or deliver collateral or margin
GCB: Global Consumer Banking when due).
Ginnie Mae: Government National Mortgage Association MBS: Mortgage-backed securities

GSIB: Global systemically important banks MCA: Manager’s control assessment

HELOC: Home equity line of credit MD&A: Management’s discussion and analysis

HFI loans: Loans that are held-for-investment (i.e., excludes loans Measurement alternative: Measures equity securities without readily
held-for-sale). determinable fair values at cost less impairment (if any), plus or minus
observable price changes from an identical or similar investment of the
HFS: Held-for-sale
same issuer.
HQLA: High-quality liquid assets. Consist of cash and certain high-quality
Moody’s: Moody’s Investor Services
liquid securities as defined in the LCR rule.
MSRs: Mortgage servicing rights
HTM: Held-to-maturity
N/A: Data is not applicable or available for the period presented.
IBOR: Interbank Offered Rate
NAA: Non-accrual assets. Consists of non-accrual loans and OREO.
ICG: Institutional Clients Group
NAL: Non-accrual loans. Loans for which interest income is not recognized
ICRM: Independent Compliance Risk Management
on an accrual basis. Loans (other than credit card loans and certain
IPO: Initial public offering consumer loans insured by U.S. government sponsored agencies) are placed
on non-accrual status when full payment of principal and interest is not
ISDA: International Swaps and Derivatives Association
expected, regardless of delinquency status, or when principal and interest
KM: Key financial and non-financial metric used by management when have been in default for a period of 90 days or more unless the loan is both
evaluating consolidated and/or individual business results. well-secured and in the process of collection. Collateral-dependent loans are
typically maintained on non-accrual status.
KPMG LLP: Citi’s Independent Registered Public Accounting Firm.
NAV: Net asset value
LATAM: Latin America, which for Citi, includes Mexico.
NCL(s): Net credit losses. Represents gross credit losses, less gross
LCR: Liquidity coverage ratio. Represents HQLA divided by net outflows in
credit recoveries.
the period.
NCL ratio*: Represents net credit losses (recoveries) (annualized),
LDA: Loss Distribution Approach
divided by average loans for the reporting period.
LGD: Loss given default
Net Capital Rule: Rule 15c3-1 under the Securities Exchange Act of 1934.
LIBOR: London Interbank Offered Rate
Net interchange income: Includes the following components:
LLC: Limited Liability Company
• Interchange revenue: Fees earned from merchants based on Citi’s credit
LTD: Long-term debt and debit card customers’ sales transactions.
LTV: Loan-to-value. For residential real estate loans, the relationship,
• Reward costs: The cost to Citi for points earned by cardholders enrolled in
credit card rewards programs generally tied to sales transactions.
expressed as a percentage, between the principal amount of a loan and
the appraised value of the collateral (i.e., residential real estate) securing
• Partner payments: Payments to co-brand credit card partners based
on the cost of loyalty program rewards earned by cardholders on credit
the loan.
card transactions.

318
NII: Net interest income. Represents total interest revenue, less total PCI: Purchased credit-impaired loans represented certain loans that
interest expenses. were acquired and deemed to be credit impaired on the acquisition date.
The now superseded FASB guidance that allowed purchasers to aggregate
NIM*: Net interest margin expressed as a yield percentage, calculated as
credit-impaired loans acquired in the same fiscal quarter into one or more
annualized net interest income divided by average interest-earning assets for
pools, provided that the loans had common risk characteristics (e.g., product
the period.
type, LTV ratios).
NIR: Non-interest revenues
PD: Probability of default
NM: Not meaningful
Principal transactions revenue: Primarily trading-related
Noncontrolling interests: The portion of an investment that has revenues predominantly generated by the ICG businesses. See Note 6 to the
been consolidated by Citi that is not 100% owned by Citi. Consolidated Financial Statements.
Non-GAAP financial measure: Management uses these financial Provisions: Provisions for credit losses and for benefits and claims.
measures because it believes they provide information to enable investors to
PSUs: Performance share units
understand the underlying operational performance and trends of Citi and
its businesses. Real GDP: Real gross domestic product is the inflation-adjusted value of
the goods and services produced by labor and property located in a country.
NSFR: Net Stable Funding Ratio
Regulatory VAR: Daily aggregated VAR calculated in accordance with
O/S: Outstanding
regulatory rules.
OCC: Office of the Comptroller of the Currency
REITs: Real estate investment trusts
OCI: Other comprehensive income (loss)
Release: A net decrease in ACL through the provision for credit losses.
OREO: Other real estate owned
Reported basis: Financial statements prepared under U.S. GAAP.
OTTI: Other-than-temporary impairment
Results of operations that exclude certain impacts from
Over-the-counter cleared (OTC-cleared) derivatives: gains or losses on sale, or one-time charges*: Represents
Derivative contracts that are negotiated and executed bilaterally, but GAAP items, excluding the impact of gains or losses on sales, or one-time
subsequently settled via a central clearing house, such that each derivative charges (e.g., the loss on sale related to the sale of Citi’s consumer banking
counterparty is only exposed to the default of that clearing house. business in Australia).
Over-the-counter (OTC) derivatives: Derivative contracts Results of operations that exclude the impact of FX
that are negotiated, executed and settled bilaterally between two derivative translation*: Represents GAAP items, excluding the impact of FX
counterparties, where one or both counterparties is a derivatives dealer. translation, whereby the prior periods’ foreign currency balances are
translated into U.S. dollars at the current periods’ conversion rates (also
Parent Company: Citigroup Inc.
known as Constant dollar).
Participating securities: Represents unvested share-based
Retail services: Citi’s U.S. retail services cards business with a portfolio
compensation awards containing nonforfeitable rights to dividends or
of co-brand and private label relationships (including, among others, The
dividend equivalents (collectively, “dividends”), which are included in the
Home Depot, Sears, Best Buy and Macy’s).
earnings per share calculation using the two-class method. Citi grants RSUs
to certain employees under its share-based compensation programs, which ROA*: Return on assets. Represents net income (annualized), divided by
entitle the recipients to receive non-forfeitable dividends during the vesting average assets for the period.
period on a basis equivalent to the dividends paid to holders of common
ROCE*: Return on Common Equity. Represents net income less preferred
stock. These unvested awards meet the definition of participating securities.
dividends (both annualized), divided by average common equity for
Under the two-class method, all earnings (distributed and undistributed) are
the period.
allocated to each class of common stock and participating securities, based
on their respective rights to receive dividends. ROE: Return on equity. Represents net income less preferred dividends
(both annualized), divided by average Citigroup equity for the period.
PCD: Purchased credit-deteriorated assets are financial assets that as of the
date of acquisition have experienced a more-than-insignificant deterioration
in credit quality since origination, as determined by the Company.

319
RoTCE*: Return on tangible common equity. Represents net income less Tax Reform: Tax Cuts and Jobs Act of 2017
preferred dividends (both annualized), divided by average tangible common
TDR: Troubled debt restructuring. TDR is deemed to occur when the
equity for the period.
Company modifies the original terms of a loan agreement by granting a
RSU(s): Restricted stock units concession to a borrower that is experiencing financial difficulty. Loans with
short-term and other insignificant modifications that are not considered
RWA: Risk-weighted assets. Basel III establishes two comprehensive
concessions are not TDRs.
approaches for calculating RWA (a Standardized approach and an Advanced
approach), which include capital requirements for credit risk, market risk, TLAC: Total loss-absorbing capacity
and in the case of Basel III Advanced, also operational risk. Key differences
Total payout ratio*: Represents total common dividends declared
in the calculation of credit risk RWA between the Standardized and Advanced
plus common share repurchases as a percentage of net income available to
approaches are that for Basel III Advanced, credit risk RWA is based on
common shareholders.
risk-sensitive approaches which largely rely on the use of internal credit
models and parameters, whereas for Basel III Standardized, credit risk RWA Transformation: Citi has embarked on a multiyear transformation,
is generally based on supervisory risk-weightings, which vary primarily with the target outcome to change Citi’s business and operating models such
by counterparty type and asset class. Market risk RWA is calculated on a that they simultaneously strengthen risk and controls and improve Citi’s
generally consistent basis between Basel III Standardized and Basel III value to customers, clients and shareholders.
Advanced Approaches.
U.K.: United Kingdom
S&P: Standard and Poor’s Global Ratings
Unaudited: Financial statements and information that have not been
SCB: Stress Capital Buffer subjected to auditing procedures sufficient to permit an independent certified
public accountant to express an opinion.
SEC: The U.S. Securities and Exchange Commission
USD: U.S. dollar
Securities financing agreements: Include resale, repurchase,
securities borrowed and securities loaned agreements. U.S.: United States of America

SLR: Supplementary leverage ratio. Represents Tier 1 Capital, divided by U.S. government agencies: U.S. government agencies include,
total leverage exposure. but are not limited to, agencies such as Ginnie Mae and FHA, and do not
include Fannie Mae and Freddie Mac, which are U.S. government-sponsored
SOFR: Secured Overnight Financing Rate
enterprises (U.S. GSEs). In general, obligations of U.S. government agencies
SPEs: Special purpose entities are fully and explicitly guaranteed as to the timely payment of principal and
interest by the full faith and credit of the U.S. government in the event of
Structured notes: Financial instruments whose cash flows are linked
a default.
to the movement in one or more indexes, interest rates, foreign exchange
rates, commodities prices, prepayment rates, or other market variables. U.S. Treasury: U.S. Department of the Treasury
The notes typically contain embedded (but not separable or detachable)
VAR: Value at risk. A measure of the dollar amount of potential loss from
derivatives. Contractual cash flows for principal, interest or both can vary in
adverse market moves in an ordinary market environment.
amount and timing throughout the life of the note based on non-traditional
indexes or non-traditional uses of traditional interest rates or indexes. VIEs: Variable interest entities

Tangible book value per share (TBVPS)*: Represents tangible Wallet: Proportion of fee revenue based on estimates of investment
common equity divided by EOP common shares outstanding. banking fees generated across the industry (i.e., the revenue wallet) from
investment banking transactions in M&A, equity and debt underwriting, and
Tangible common equity (TCE): Represents common stockholders’
loan syndications.
equity less goodwill and identifiable intangible assets, other than MSRs.
Taxable-equivalent basis: Represents the total revenue, net of
interest expense for the business, adjusted for revenue from investments
that receive tax credits and the impact of tax-exempt securities. This metric
presents results on a level comparable to taxable investments and securities.

320
 Stockholder Information

Citigroup common stock is listed on the NYSE under the Exchange Agent
ticker symbol “C.” Citigroup preferred stock Series J and K Holders of Golden State Bancorp, Associates First Capital
are also listed on the NYSE. Corporation or Citicorp common stock should arrange to
Because Citigroup’s common stock is listed on the NYSE, exchange their certificates by contacting:
the Chief Executive Officer is required to make an annual Computershare
certification to the NYSE stating that she was not aware of P.O. Box 505004
any violation by Citigroup of the corporate governance listing Louisville, KY 40233-5004
standards of the NYSE. The annual certification to that effect Telephone No. 781 575 4555
was made to the NYSE on May 21, 2021. Toll-free No. 888 250 3985
As of January 31, 2022, Citigroup had approximately 61,355 E-mail address: [email protected]
common stockholders of record. This figure does not Web address: www.computershare.com/investor
represent the actual number of beneficial owners of common On May 9, 2011, Citi effected a 1-for-10 reverse stock split.
stock because shares are frequently held in “street name” All Citi common stock certificates issued prior to that date
by securities dealers and others for the benefit of individual must be exchanged for new certificates by contacting
owners who may vote the shares. Computershare at the address noted above.
Citi’s 2021 Form 10-K filed with the SEC, as well as other
Transfer Agent annual and quarterly reports, are available from Citi
Stockholder address changes and inquiries regarding stock Document Services toll free at 877 936 2737 (outside the
transfers, dividend replacement, 1099-DIV reporting and United States at 716 730 8055), by e-mailing a request to
lost securities for common and preferred stock should be [email protected] or by writing to:
directed to:
Citi Document Services
Computershare 540 Crosspoint Parkway
P.O. Box 505005 Getzville, NY 14068
Louisville, KY 40233-5005
Telephone No. 781 575 4555
Toll-free No. 888 250 3985 Stockholder Inquiries
E-mail address: [email protected] Information about Citi, including quarterly earnings
Web address: www.computershare.com/investor releases and filings with the U.S. Securities and Exchange
Commission, can be accessed via Citi’s website at
www.citigroup.com. Stockholder inquiries can also be
directed by e-mail to [email protected].
Produced by Citi Graphic Communications.

The cover and editorial section of this annual report are printed on McCoy, manufactured by Sappi North America with 10% recycled content
and FSC® Chain of Custody Certified. 100% of the electricity used to manufacture McCoy is Green-e® certified renewable energy.
The financial section of this annual report is printed on FSC® certified Accent® Opaque 40lb white smooth text from Sylvamo.
Citi, Citi and Arc Design and other marks used herein are service marks of Citigroup Inc. or its affiliates, used and registered throughout the world.
Cover Photo: UNICEF/2021
www.citigroup.com

© 2022 Citigroup Inc.

2058607 CIT24030 03/22