Citigroup Fourth Quarter Net Income Increases 12% to a Record $5.32 Billion; Fourth Quarter EPS of $1.02, up 12%; Revenues Increase 9% to $21.9 Billion

Business Wire, Jan 20, 2005

NEW YORK -- Citigroup Inc. (NYSE:C):

--Citigroup 2004 Net Income of $17.0 Billion, EPS of $3.26

--Revenues Increased 11% in 2004 to $86.2 Billion

Citigroup Inc. (NYSE:C) today reported record net income for the fourth quarter of 2004 of $5.32 billion, or $1.02 per share, both increasing 12% from the fourth quarter of 2003. Strong customer volumes drove a 9% increase in revenues. Fourth quarter results included a $244 million after-tax charge related to closing the Japan Private Bank and a $131 million after-tax reserve related to expected resolution of the previously disclosed SEC investigation of transfer agent matters.

For the twelve months ended December 31, 2004, Citigroup's net income was $17.0 billion, or $3.26 per share, both decreasing 5% from 2003. Results for 2004 included a $4.95 billion after-tax charge, or $0.95 per share, for the WorldCom class action settlement and increased litigation reserves related to 2003 regulatory settlements recorded in the second quarter. Results also included a $756 million, or $0.15 per share, after-tax gain on the sale of the company's 20% stake in the Samba Financial Group. Excluding these previously announced items, earnings would have been $21.2 billion, or $4.07 per share, both increasing 19%.

Citigroup Segment      Fourth Quarter    %       Full Year         %
 Results                 Net Income    Change    Net Income     Change
                       -----------------------------------------------
(In Millions of Dollars) 2004   2003            2004     2003
------------------------------ -------        -------- --------

Global Consumer        $3,097  $2,639     17% $11,811   $9,491     24%

Global Corporate and
 Investment Bank        1,686   1,273     32    2,038    5,371    (62)

Global Wealth
 Management(a)             97     383    (75)   1,199    1,343    (11)

Global Investment
 Management               254     287    (11)   1,311    1,116     17

Proprietary Investment
 Activities               333     137     NM      743      366     NM

Corporate/Other          (146)     41     NM      (56)     166     NM
                       ------- ------- ------ -------- -------- ------

Total Citigroup        $5,321  $4,760     12% $17,046  $17,853    (5%)
----------------------------------------------------------------------

(a) Comprises Smith Barney and the Citigroup Private Bank.

"Our fourth quarter and full-year results reflect the strengths of our unique global business platform," said Charles Prince, Chief Executive Officer of Citigroup. "Customer volumes increased in several core consumer and corporate franchises, with exceptionally strong growth in our international businesses, where full-year revenues and net income rose 18% and 43%, respectively. Favorable global credit trends led to significantly reduced credit costs. These trends continued into the fourth quarter, resulting in 12% net income growth despite increased investment spending and higher costs related to regulatory and legal matters."

"While 2004 held some significant challenges for the company, we continued to position Citigroup for long-term growth and success. We increased investment spending and executed several targeted acquisitions, which enhanced our ability to reach and serve our global customer base. We launched new products such as 'PremierPass' and the 'ThankYou Network' in cards, and we continued to expand our global branch network in retail banking and consumer finance. To better serve our corporate customers, we enhanced our electronic trading platforms, improved our capabilities

in derivatives products, and expanded our international direct custody business through direct investment and acquisitions. The implementation of our new capital allocation process in 2004 led to the sale of several non-strategic assets during the year. We will continue in 2005 with our disciplined approach to capital management," said Prince.

"Although the legal and regulatory charges we recorded in 2004 were significant disappointments, resolving open legal and regulatory issues is a key management priority. In addition, during the fourth quarter I personally met with over 35,000 of our employees to emphasize our goal of becoming the most respected global financial services company. Throughout 2005, we will implement many enhancements to our training, development and compensation processes to achieve this goal," said Prince.

FOURTH QUARTER HIGHLIGHTS

--Increased customer volumes. Consumer confidence continued to improve during the quarter, which along with a rebound in capital markets volumes, led to increased customer activity across our franchises. In North America, average loans grew 20% in retail banking and 13% in consumer finance, while internationally, retail banking deposits increased 19% and cards opened more than 1 million new accounts. Smith Barney net client flows were the strongest in 11 quarters, at $10 billion, and private bank assets under management increased 24%. In transaction services, assets under custody rose 23% and liability balances increased 28%.