Citigroup Inc.

Company Overview

Business Model: Citigroup Inc. is a global diversified financial services holding company that provides consumer banking and credit, corporate and investment banking, securities brokerage, trade and securities services, and wealth management. Its vision is to be the preeminent banking partner for institutions with cross-border needs, a global leader in wealth management, and a valued personal bank in the U.S.

Market Position: Citigroup Inc. conducts business in nearly 160 countries and jurisdictions. It aims to be a global leader in wealth management and a preeminent banking partner for institutions with cross-border needs. The company's international presence is supported by trading floors in approximately 80 countries and a proprietary network in 95 countries and jurisdictions for its Markets segment.

Recent Strategic Developments: In 2024, Citigroup Inc. completed its organizational simplification, announced in September 2023, which resulted in a simpler management structure and the consolidation of its regional structure from four to two regions (North America and International). Progress was made on remaining divestitures, including consumer banking operations in Korea and Poland, and overall operations in Russia. A significant milestone was the separation of its Services, Markets, Banking, and Wealth businesses in Mexico from its consumer banking and small business and middle-market banking operations in Mexico (Mexico Consumer/SBMM) in December 2024, in preparation for a planned initial public offering of the Mexico Consumer/SBMM business. The company also announced a 10-year extension and expansion of its co-branded credit card partnership with American Airlines and an agreement to acquire the Barclays American Airlines co-branded card portfolio, becoming American Airlines’ exclusive credit card issuing partner in 2026.

Geographic Footprint: Citigroup Inc. operates in nearly 160 countries and jurisdictions. Its international operations are organized into six clusters: United Kingdom; Japan, Asia North and Australia (JANA); Latin America (LATAM); Asia South; Europe; and Middle East and Africa (MEA). Mexico is included in LATAM within International. As of December 31, 2024, approximately 28% of Citigroup Inc.'s total revenues were generated from emerging markets.

Financial Performance

Revenue Analysis

Profitability Metrics:

• Operating Margin: 21.0%
• Net Margin: 15.6%

Investment in Growth:

• R&D Expenditure: Not explicitly stated as a separate line item.
• Capital Expenditures: Not explicitly stated as a separate line item.
• Strategic Investments: Transformation-related expenses increased 1% to approximately $2.9 billion in 2024, focusing on improving risk management, modernizing technology and infrastructure, and enhancing resiliency.

Business Segment Analysis

Services

Financial Performance:

• Revenue: $19.6 billion (+9% YoY)
• Operating Margin: 33.5% (calculated from Income from continuing operations)
• Key Growth Drivers: Excluding Argentina currency devaluation, revenues increased 3%, driven by a 6% increase in cross-border transaction value, a 7% increase in U.S. dollar clearing volume, and a 5% increase in commercial card spend volume in Treasury and Trade Solutions (TTS). Securities Services revenue growth was driven by increased fees from higher assets under custody and administration (AUC/AUA) balances (up 8%). Product Portfolio:
• Treasury and Trade Solutions (TTS) revenues: $14.5 billion (+6%)
• Securities Services revenues: $5.1 billion (+17%) Market Dynamics:
• TTS non-interest revenue increased 3% (excluding Argentina currency devaluation).
• Securities Services non-interest revenue increased 18%. Operational Metrics:
• Average loans: $85 billion (+5%)
• Average deposits: $819 billion (+1%)
• Assets under custody and administration (Securities Services): $25.4 trillion (as of December 31, 2024)

Markets

Financial Performance:

• Revenue: $19.8 billion (+6% YoY)
• Operating Margin: 25.2% (calculated from Income from continuing operations)
• Key Growth Drivers: Equity Markets increased 26% due to higher client activity and volumes in cash equities, higher volatility in equity derivatives (including an episodic gain related to the Visa B exchange), and growth in prime services. Fixed Income Markets increased 1%, driven by 20% growth in spread products and other fixed income, partially offset by 6% lower revenues in rates and currencies. Product Portfolio:
• Fixed Income Markets revenues: $14.750 billion (+1%)
• Equity Markets revenues: $5.086 billion (+26%) Market Dynamics:
• Provides sales and trading services across equities, foreign exchange, rates, spread products, and commodities. Operational Metrics:
• Average loans: $120 billion (+9%)
• Average trading account assets: $436 billion (+15%)
• Average deposits: $21 billion (-9%)

Banking

Financial Performance:

• Revenue: $6.2 billion (+32% YoY), including a $180 million loss on loan hedges (2023: $443 million loss). Excluding losses on loan hedges, revenues were $6.4 billion (+24%).
• Operating Margin: 24.7% (calculated from Income from continuing operations)
• Key Growth Drivers: Investment Banking revenue growth was due to a rebound in overall wallet activity and wallet share gains across all products. Advisory was up 22%, Equity underwriting (ECM) up 38%, and Debt underwriting (DCM) up 61%. Product Portfolio:
• Investment Banking revenues: $3.6 billion (+38%)
• Corporate Lending revenues (excluding gain/loss on loan hedges): $2,744 million (+9%) Operational Metrics:
• Average loans: $88 billion (-4%)
• Average deposits: $1 billion (unchanged)

Wealth

Financial Performance:

• Revenue: $7.5 billion (+7% YoY)
• Operating Margin: 13.3% (calculated from Income from continuing operations)
• Key Growth Drivers: Client investment assets increased 18% to $587 billion. Net new investment asset flows were $42 billion during 2024. Citigold revenues increased 11%. Product Portfolio:
• Private Bank revenues: $2,386 million (+2%)
• Wealth at Work revenues: $876 million (+2%)
• Citigold revenues: $4,250 million (+11%) Market Dynamics:
• Operates in 20 countries, including the U.S., Mexico, Singapore, Hong Kong, the UAE, and London. Operational Metrics:
• Average loans: $149 billion (-1%), comprising $89 billion in mortgage loans, $29 billion in margin loans, $24 billion in personal, small business and other loans, and $5 billion in outstanding credit card balances.
• Average deposits: $315 billion (+2%)

U.S. Personal Banking (USPB)

Financial Performance:

• Revenue: $20.4 billion (+6% YoY)
• Operating Margin: 6.8% (calculated from Income from continuing operations)
• Key Growth Drivers: Branded Cards revenues increased 7% with interest-earning balance growth up 9% and spend volume up 4%. Retail Services revenues increased 8% with interest-earning balances up 3%. Product Portfolio:
• Branded Cards revenues: $10.7 billion (+7%)
• Retail Services revenues: $7.1 billion (+8%)
• Retail Banking revenues: $2.6 billion (-1%) Market Dynamics:
• Net credit losses increased 45% to $7.6 billion, driven by maturation of cards loan vintages and macroeconomic pressures. Customer Portfolio:
• At December 31, 2024, USPB had 642 retail bank branches concentrated in New York, Chicago, Los Angeles, San Francisco, Washington, D.C., and Miami.
• Outstanding credit card balances: $171 billion.
• Deposits: $89 billion.
• Mortgages: $46 billion.
• Personal and small business loans: $5 billion.
• The five largest co-branding and private label relationships constituted approximately 12% of Citigroup Inc.’s revenues in 2024. Operational Metrics:
• Average loans: $209 billion (+8%)
• Average deposits: $91 billion (-17%)
• New account acquisitions: Branded Cards: 4,667 thousand (+3%); Retail Services: 7,882 thousand (-14%).

All Other (Managed Basis)

Financial Performance:

• Net loss: $2.4 billion (-16% YoY)
• Revenues: Decreased 20% YoY
• Key Growth Drivers: Mexico Consumer/SBMM revenues increased 8%. Asia Consumer revenues decreased 46%. Corporate/Other revenues decreased 68%. Sub-segment Breakdown:
• Mexico Consumer/SBMM: $6.2 billion revenue (+8% YoY). End-of-period loans: $23.1 billion (-8%). End-of-period deposits: $34.1 billion (-15%).
• Asia Consumer: $819 million revenue (-46% YoY). End-of-period loans: $4.7 billion (-36%). End-of-period deposits: $7.5 billion (-21%).
• Legacy Holdings Assets: $(118) million revenue (2023: $110 million). End-of-period loans: $2.2 billion (-21%).
• Corporate/Other: $668 million revenue (-68% YoY). Operational Metrics:
• Legacy Franchises (managed basis) had 1,317 retail branches, $42 billion in deposits, $16 billion in retail banking loans, and $8 billion in outstanding credit card balances at December 31, 2024.
• Mexico SBMM had $6 billion in outstanding corporate loans at December 31, 2024.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: $2.5 billion (approximately 44 million shares) in 2024.
• Dividend Payments: $4.2 billion in common dividends in 2024.
• Dividend Yield: Not explicitly stated.
• Future Capital Return Commitments: On January 13, 2025, Citigroup Inc.’s Board of Directors authorized a new, multiyear $20 billion common stock repurchase program, with planned repurchases of $1.5 billion during the first quarter of 2025. Citigroup Inc. plans to maintain a quarterly common dividend of $0.56 per share.

Balance Sheet Position:

• Cash and Equivalents: $276.5 billion (Cash and due from banks: $22.8 billion; Deposits with banks, net of allowance: $253.7 billion) as of December 31, 2024.
• Total Debt: $335.8 billion (Long-term debt: $287.3 billion; Short-term borrowings: $48.5 billion) as of December 31, 2024.
• Net Cash Position: $(59.3) billion (Net Debt) as of December 31, 2024.
• Credit Rating: Citigroup Inc. has a long-term credit rating of A (Fitch), A3 (Moody’s), and BBB+ (S&P), all with a Stable outlook as of December 31, 2024.
• Debt Maturity Profile: Weighted-Average Maturity (WAM) of unsecured long-term debt (remaining life > 1 year) was 7.3 years at December 31, 2024. Aggregate expected remaining long-term debt maturities: $41.9 billion in 2025, $50.8 billion in 2026, $30.3 billion in 2027, $29.3 billion in 2028, $17.8 billion in 2029, and $117.2 billion thereafter, totaling $287.3 billion.

Cash Flow Generation:

• Operating Cash Flow: $(19.7) billion (used in) operating activities of continuing operations in 2024.
• Free Cash Flow: Not explicitly stated.
• Cash Conversion Metrics: Not explicitly stated.

Operational Excellence

Production & Service Model: Citigroup Inc. is undergoing a multiyear transformation to improve risk management, modernize technology and infrastructure, and improve resiliency. This includes efforts to accelerate progress in data quality management, close consent orders, and simplify system restoration for critical applications.

Supply Chain Architecture: Key Suppliers & Partners:

• Co-branded Credit Card Partners: American Airlines (10-year extension and expansion of partnership, becoming exclusive credit card issuing partner in 2026).
• Technology Partners: Not explicitly named, but transformation efforts include modernizing technology and infrastructure, and approximately 99% of global spread products business risk computations now occur on cloud-based infrastructure.

Facility Network:

• Manufacturing: Not explicitly stated.
• Research & Development: Not explicitly stated.
• Distribution: U.S. Personal Banking had 642 retail bank branches concentrated in major U.S. cities. Legacy Franchises (managed basis) had 1,317 retail branches. Citigroup Inc. upgraded 100% of its more than 2,300 ATMs in North America, Singapore, Hong Kong, and the UAE to next-generation software.

Operational Metrics:

• Legacy applications retired or replaced: 714 in 2024.
• Critical applications with simplified single-click system restoration: Approximately 26%.
• Product data onboarded to strategic data redistribution platforms: Approximately 76%.

Market Access & Customer Relationships

Go-to-Market Strategy: Distribution Channels:

• Direct Sales: Enterprise sales force for institutional clients.
• Channel Partners: Co-branded and private label credit card partnerships (e.g., American Airlines).
• Digital Platforms: Online sales channels and e-commerce initiatives are implied by technology modernization efforts.

Customer Portfolio: Enterprise Customers:

• Tier 1 Clients: Not explicitly named, but Citigroup Inc. aims to be the preeminent banking partner for institutions with cross-border needs.
• Strategic Partnerships: American Airlines (co-branded credit card partnership).
• Customer Concentration: The five largest co-branding and private label relationships across Branded Cards and Retail Services in U.S. Personal Banking constituted approximately 12% of Citigroup Inc.’s revenues in 2024.

Geographic Revenue Distribution:

• North America: 49.4% of total revenue ($40.1 billion)
• International: 49.8% of total revenue ($40.4 billion)
• Growth Markets: Emerging markets accounted for approximately 28% of Citigroup Inc.’s total revenues in 2024.

Competitive Intelligence

Market Structure & Dynamics

Industry Characteristics: The financial services industry is highly competitive, with competition for clients and capital globally and on a regional/product basis. Competitive Positioning Matrix:

Direct Competitors

Primary Competitors: Not explicitly named in the provided filing, but the financial services industry is described as highly competitive.

Emerging Competitive Threats: Citigroup Inc. faces increased competitive challenges from financial services and other companies and emerging technologies such as AI, digital assets, and instant payments.

Competitive Response Strategy: Citigroup Inc. is addressing competitive threats through its multiyear transformation, focusing on improving risk management, modernizing technology, and simplifying its organizational structure. It is also expanding strategic partnerships, such as the American Airlines co-branded credit card partnership.

Risk Assessment Framework

Strategic & Market Risks

Market Dynamics: Risks include inflation resurgence, interest rate policy changes (declining rates generally lower net interest income), flattening or inversion of the yield curve, unemployment, recessions, and weak economic growth. Technology Disruption: Risks from Generative AI include inaccurate or incomplete output, biased datasets, and increased fraud. Customer Concentration: A deterioration in or failure to maintain co-branding or private label credit card relationships could negatively impact Citigroup Inc., as the five largest relationships in U.S. Personal Banking constituted approximately 12% of Citigroup Inc.’s revenues in 2024.

Operational & Execution Risks

Supply Chain Vulnerabilities: Not explicitly detailed in the provided filing. Geographic Concentration: Not explicitly detailed in the provided filing. Capacity Constraints: Not explicitly detailed in the provided filing. Operational Processes & Systems: A failure or disruption of Citigroup Inc.’s operational processes or systems could negatively impact its reputation, customers, clients, businesses, or financial condition. Cybersecurity Incidents: Citigroup Inc.’s and third parties’ computer systems and networks are susceptible to cybersecurity incidents. The Chief Information Security Office employs approximately 3,400 individuals. Risk Management Deficiencies: If Citigroup Inc.’s risk management and other processes, strategies, or models are deficient or ineffective, it may incur significant losses.

Financial & Regulatory Risks

Market & Financial Risks:

• Credit Risk: End-of-period consumer loans of $393 billion and corporate loans of $301 billion as of December 31, 2024.
• Liquidity Risk: Approximately $933 billion of available liquidity resources as of December 31, 2024.
• Credit Rating: A ratings downgrade could adversely impact Citigroup Inc.’s funding and liquidity, with a hypothetical one-notch downgrade across all three major rating agencies potentially impacting funding and liquidity by approximately $0.1 billion for Citigroup Inc. and $0.1 billion for Citibank, N.A. Regulatory & Compliance Risks:
• Heightened Regulatory Scrutiny: Significantly heightened regulatory expectations and scrutiny have increased Citigroup Inc.’s compliance, regulatory, and other risks and costs.
• Consent Orders: Citigroup Inc. is subject to extensive legal and regulatory proceedings, examinations, investigations, and consent orders, including the 2020 Federal Reserve Board and Office of the Comptroller of the Currency Consent Orders requiring improvements in risk management, compliance, data quality management, and internal controls. The July 10, 2024 Federal Reserve Board Civil Money Penalty Consent Order with Citigroup Inc. was for data quality management deficiencies. The Office of the Comptroller of the Currency Consent Order requires Citibank, N.A. to obtain prior approval for significant new acquisitions.
• Resolution Plan Shortcoming: The Federal Reserve Board and Federal Deposit Insurance Corporation jointly identified one shortcoming in Citigroup Inc.’s 2023 resolution plan regarding its derivatives unwind capabilities, requiring a targeted resolution plan by July 1, 2025.

Geopolitical & External Risks

Geopolitical Exposure: Citigroup Inc.’s emerging markets presence subjects it to various risks.

• Russia: Net investment in Russia was less than $0.1 billion as of December 31, 2024. In the event of a loss of control of AO Citibank, Citigroup Inc. would write off its remaining nominal net investment, recognize a CTA loss of approximately $1.6 billion through earnings, and recognize a loss of $0.9 billion on intercompany liabilities.
• Ukraine: Direct exposures related to Ukraine were $1.7 billion as of December 31, 2024.
• Argentina: Net investment in Argentine operations was approximately $1.5 billion as of December 31, 2024. Citigroup Inc. may need to record additional translation losses due to currency controls and additional reserves for transfer risk. Trade Relations: Risks include trade restrictions and tariffs. New U.S. administration announced tariffs on imports from China, Mexico, and Canada on February 1, 2025, and global 25% tariffs on steel and aluminum imports on February 10, 2025.

Innovation & Technology Leadership

Research & Development Focus: Core Technology Areas:

• Cloud-based Infrastructure: Approximately 99% of global spread products business risk computations now occur on cloud-based infrastructure.
• Data Quality Management: Significant focus on accelerating progress in data quality management, highlighted by the July 2024 Civil Money Penalty Consent Orders.
• Legacy Application Retirement: Retired or replaced 714 legacy applications in 2024. Innovation Pipeline: Not explicitly detailed beyond general transformation efforts.

Intellectual Property Portfolio:

• Patent Strategy: Not explicitly detailed.
• Licensing Programs: Not explicitly detailed.
• IP Litigation: Not explicitly detailed.

Technology Partnerships:

• Strategic Alliances: Not explicitly named, but the Head of Emerging Technology and Strategic Partnerships reports to the Chief Information Officer.
• Research Collaborations: Not explicitly detailed.

Leadership & Governance

Executive Leadership Team

Leadership Continuity: Citigroup Inc. has a Transformation Bonus Program, approved in 2021, to incentivize approximately 200 senior employees critical to transformation execution. The company appointed a Chief Operating Officer in 2023 and a new Head of Technology and Business Enablement in 2024.

Board Composition: The Citigroup Inc. Board of Directors includes members with cybersecurity expertise, is briefed annually on cybersecurity risks, and participates in cybersecurity exercises. The Board executes its responsibilities through various committees, including the Audit Committee, Compensation, Performance Management and Culture Committee, Nomination, Governance and Public Affairs Committee, Risk Management Committee, and Technology Committee. An ad hoc Transformation Oversight Committee provides oversight of transformation efforts.

Human Capital Strategy

Workforce Composition:

• Total Employees: Approximately 229,000 full-time employees as of December 31, 2024, a decrease from approximately 239,000 at December 31, 2023.
• Geographic Distribution: North America: 86,000; International: 143,000.
• Skill Mix: Not explicitly detailed, but the Chief Information Security Office employs approximately 3,400 individuals.

Talent Management: Acquisition & Retention:

• Hiring Strategy: In 2024, Citigroup Inc. welcomed over 24,000 new employees.
• Retention Metrics: 39,700 roles were filled by internal mobility, and more than 3,400 individuals returned to Citigroup Inc. in 2024.
• Employee Value Proposition: Citigroup Inc. has introduced market-based salary structures and bonus opportunity guidelines and posts salary ranges on all external U.S. job postings. Benefits include mental health counseling, onsite medical care clinics, fitness centers, subsidized gym memberships, virtual physical therapy, and parental and caregiver leaves.

Diversity & Development:

• Diversity Metrics: Citigroup Inc.’s annual pay equity analysis for 2024 determined that on an adjusted basis, global gender and U.S. racial pay gaps are each less than 1%. Gender distribution in 2024 was 49.2% men and 50.8% women.
• Development Programs: Not explicitly detailed.
• Culture & Engagement: Most employees work in a flexible, hybrid work model, remotely up to two days a week.

Environmental & Social Impact

Environmental Commitments: Climate Strategy:

• Emissions Targets: Citigroup Inc. has committed to achieving net zero greenhouse gas (GHG) emissions associated with its financing by 2050, and net zero GHG emissions for its own operations by 2030. Interim 2030 emissions targets have been published for 10 loan portfolios: aluminum, auto manufacturing, aviation, cement, commercial real estate (North America), energy, power, shipping, steel, and thermal coal mining.
• Carbon Neutrality: Net zero GHG emissions for own operations by 2030.
• Renewable Energy: In 2024, Citigroup Inc. increased on-site solar generation.

Supply Chain Sustainability:

• Supplier Engagement: Not explicitly detailed.
• Responsible Sourcing: Not explicitly detailed, but Citigroup Inc. reviews climate risk factors under its Environmental and Social Risk Management Policy, which includes approaches for high-carbon sectors like thermal coal mining and power.

Social Impact Initiatives:

• Community Investment: Not explicitly detailed.
• Product Impact: Citigroup Inc. has a $1 Trillion Sustainable Finance Goal.

Business Cyclicality & Seasonality

Demand Patterns:

• Seasonal Trends: Not explicitly detailed.
• Economic Sensitivity: Citigroup Inc. is sensitive to macroeconomic factors such as inflation, interest rate policies, unemployment, and economic growth. Declining interest rates generally lower net interest income.
• Industry Cycles: Not explicitly detailed.

Planning & Forecasting:

• Demand forecasting approach: Citigroup Inc.’s forecasts of the U.S. unemployment rate and U.S. real GDP growth rate most significantly affect its Allowance for Credit Losses (ACL) estimate. Under the base macroeconomic forecast as of 4Q24, U.S. real GDP growth is expected to slow during 2025 and 2026, while the unemployment rate is expected to increase in 2025 but decline in 2026.

Regulatory Environment & Compliance

Regulatory Framework: Industry-Specific Regulations:

• Bank Holding Company Regulation: Citigroup Inc. is a registered bank holding company and financial holding company, regulated by the Federal Reserve Board.
• Banking Regulation: Citibank, N.A. is regulated by the Office of the Comptroller of the Currency. The Federal Deposit Insurance Corporation and Consumer Financial Protection Bureau also regulate Citigroup Inc.
• Securities Regulation: Securities activities are conducted in the U.S. through Citigroup Global Markets Inc. and outside the U.S. principally through Citigroup Global Markets Limited.
• Futures and Commodities Regulation: Citigroup Global Markets Inc. is a member of U.S. futures exchanges and clearinghouses. Citigroup Inc. subsidiaries are registered as futures commission merchants and commodity pool operators with the Commodity Futures Trading Commission. Citibank, N.A., Citigroup Global Markets Inc., Citigroup Energy Inc., Citigroup Global Markets Europe AG, and Citigroup Global Markets Limited are registered as swap dealers with the Commodity Futures Trading Commission.
• Anti-Money Laundering: Citigroup Inc. is subject to anti-money laundering and financial transparency laws. International Compliance: Citigroup Inc. is addressing Federal Reserve Board and Office of the Comptroller of the Currency Consent Orders and the Office of the Comptroller of the Currency’s 2024 Consent Order Amendment, which include Compliance Risk Management Framework improvements.

Trade & Export Controls:

• Export Restrictions: Not explicitly detailed.
• Sanctions Compliance: Citigroup Inc. processed one transaction on November 19, 2024, between the Central Bank of Iran and an international organization, totaling USD 18,245,109.21, realizing approximately USD 3,559.18 in fees.

Legal Proceedings:

• Foreign Exchange Matters: Ongoing litigation in the U.K., Australia, Israel, and Netherlands alleging FX market manipulation.
• Fund Administration Matter: Arbitration in Brazil commenced in 2016, with Citibank Distribuidora de Titulos e Valores Mob S.A. found jointly and severally liable for asset manager fraud.
• Greek Pension Claims: Four claims filed in Athens Court of First Instance since 2015 against Citibank Europe PLC.
• Interbank Offered Rates-Related Litigation: Putative class actions against Citigroup Inc. and other banks related to USD LIBOR and Interest Rate Swaps. Preliminary approval of class action settlements granted July 11, 2024, for both.
• Interchange Fee Litigation: Consolidated multi-district litigation since 2005 against Citigroup Inc. and other payment card entities. District court denied preliminary approval of injunctive relief class settlement June 25, 2024.
• Madoff-Related Litigation: SIPA trustee actions and liquidators actions against multiple Citigroup Inc. entities.
• New York Attorney General Unauthorized Wire Litigation: Filed January 30, 2024, alleging failure to comply with EFTA and NY state laws for unauthorized wire transfers.
• Parmalat Litigation: Ongoing litigation in Italy since 2004.
• Shareholder Derivative and Securities Litigation: Consolidated derivative and putative class actions since October 2020 against Citigroup Inc. and current/former officers/directors.
• Sovereign Securities Matters: UK Competition and Markets Authority provisionally found Citigroup Inc. and others unlawfully shared information related to British pound sterling-denominated government bonds, resulting in a fine of £17.16 million. Antitrust litigation related to Mexican and European government bonds is ongoing.
• Variable Rate Demand Obligation Litigation: Consolidated actions since 2019 against Citigroup Inc. and other banks.

Tax Strategy & Considerations

Tax Profile:

• Effective Tax Rate: 24.7% in 2024 (27.3% in 2023).
• Geographic Tax Planning: Non-U.S. pretax earnings approximated $19.4 billion in 2024. $5.8 billion of basis differences of non-U.S. entities were indefinitely reinvested at December 31, 2024.
• Tax Reform Impact: The Inflation Reduction Act’s corporate alternative minimum tax and 1% excise tax on share repurchases became effective January 1, 2023. Citigroup Inc. does not expect to pay material corporate AMT.

Insurance & Risk Transfer

Risk Management Framework:

• Insurance Coverage: Not explicitly detailed.
• Risk Transfer Mechanisms: Citigroup Inc. utilizes credit derivative hedges for its corporate credit portfolio, totaling $37.8 billion as of December 31, 2024. It also hedges approximately $0.4 billion of its Argentine peso exposure through offshore non-deliverable forward derivative instruments.