21

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-KANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2010

Commission file number 1-9924

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

Delaware (State or other jurisdiction of

incorporation or organization)

52-1568099 (I.R.S. Employer

Identification No.)

399 Park Avenue, New York, NY (Address of principal executive offices)

10043 (Zip code)

Registrants telephone number, including area code: (212) 559-1000

Securities registered pursuant to Section 12(b) of the Act: 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 X 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 X 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. X Yes No

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files). X Yes No

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (229.405 of this chapter) is not contained herein, and will not be contained, to the best of Registrants knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of large accelerated filer, accelerated filer, and smaller reporting company in Rule 12b-2 of the Exchange Act.

X Large accelerated filer Accelerated filer Non-accelerated filer Smaller reporting company(Do not check if a smaller reporting company)

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes X No

The aggregate market value of Citigroup Inc. common stock held by non-affiliates of Citigroup Inc. on June 30, 2010 was approximately $108.8 billion.

Number of shares of common stock outstanding on January 31, 2011: 29,056,025,228

Documents Incorporated by Reference: Portions of the Registrants Proxy Statement for the annual meeting of stockholders scheduled to be held on April 21, 2011, are incorporated by reference in this Form 10-K in response to Items 10, 11, 12, 13 and 14 of Part III.

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10-K CroSS-reFereNCe iNdeX

This Annual Report on Form 10-K incorporates the requirements of the accounting profession and the Securities and Exchange Commission.

Form 10-K

Item Number Page

Part I

1. Business . . . . . . . . . . . . . . . . . . . . . 24-53, 57, 134-141, 144-145, 182, 301-302

1A. Risk Factors . . . . . . . . . . . . . . . . . . 71-80

1B. Unresolved Staff Comments . . . . . . Not Applicable

2. Properties . . . . . . . . . . . . . . . . . . . . 302-303

3. Legal Proceedings . . . . . . . . . . . . . 283-288

4. (Removed and Reserved) . . . . . . . .

Part II

5. Market for Registrants Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities . . . . . . . . . . . . . . . 60, 189, 299,

303-304, 306

6. Selected Financial Data . . . . . . . . . 28-29

7. Managements Discussion and Analysis of Financial Condition and Results of Operations . . . . . . . 24-70, 81-133

7A. Quantitative and Qualitative Disclosures About Market Risk . . . 81-133, 183-184,

203-228, 231-275

8. Financial Statements and Supplementary Data . . . . . . . . . . . . 151-300

9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure . . . . . . . . Not Applicable

9A. Controls and Procedures . . . . . . . . 142-143

9B. Other Information . . . . . . . . . . . . . . Not Applicable

Part III

10. Directors, Executive Officers and Corporate Governance . . . . . . . . . . . . . . 305-306, 308*

11. Executive Compensation . . . . . . . . . . . . **

12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters . . . . . . . . . . . . . . . . ***

13. Certain Relationships and Related Transactions, and Director Independence . . . . . . . . . . . . . . . . . . . . . ****

14. Principal Accounting Fees and Services . . . . . . . . . . . . . . . . . . . . . . . . . *****

Part IV

15. Exhibits and Financial Statement Schedules . . . . . . . . . . . . . . . . . . . . . . . .

* For additional information regarding Citigroups Directors, see Corporate Governance, Proposal 1: Election of Directors and Section 16(a) Beneficial Ownership Reporting Compliance in the definitive Proxy Statement for Citigroups Annual Meeting of Stockholders scheduled to be held on April 21, 2011, to be filed with the SEC (the Proxy Statement), incorporated herein by reference.

** See Executive CompensationCompensation Discussion and Analysis, 2010 Summary Compensation Table and The Personnel and Compensation Committee Report in the Proxy Statement, incorporated herein by reference.

*** See About the Annual Meeting, Stock Ownership and Proposal 3: Approval of Amendment to the Citigroup 2009 Stock Incentive Plan in the Proxy Statement, incorporated herein by reference.

**** See Corporate GovernanceDirector Independence, Certain Transactions and Relationships, Compensation Committee Interlocks and Insider Participation, Indebtedness, Proposal 1: Election of Directors and Executive Compensation in the Proxy Statement, incorporated herein by reference.

***** See Proposal 2: Ratification of Selection of Independent Registered Public Accounting Firm in the Proxy Statement, incorporated herein by reference.

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CiTigrouPS 2010 aNNuaL rePorT oN Form 10-K

oVerView 24CiTigrouP SegmeNTS aNd regioNS 25maNagemeNTS diSCuSSioN aNd aNaLySiS

oF FiNaNCiaL CoNdiTioN aNd reSuLTS oF oPeraTioNS 26

eXeCuTiVe Summary 26reSuLTS oF oPeraTioNS 28FiVe-year Summary oF SeLeCTed

FiNaNCiaL daTa 28SegmeNT, BuSiNeSS aNd ProduCT

iNCome (LoSS) aNd reVeNueS 30CiTiCorP 32

regional Consumer Banking 33North America Regional Consumer Banking 34EMEA Regional Consumer Banking 36Latin America Regional Consumer Banking 38Asia Regional Consumer Banking 40institutional Clients group 42Securities and Banking 43Transaction Services 45

CiTi hoLdiNgS 46Brokerage and Asset Management 47Local Consumer Lending 48Special Asset Pool 50

CorPoraTe/oTher 53BaLaNCe SheeT reView 54

Segment Balance Sheet at December 31, 2010 57CaPiTaL reSourCeS aNd LiQuidiTy 58

Capital Resources 58Funding and Liquidity 64

CoNTraCTuaL oBLigaTioNS 70riSK FaCTorS 71maNagiNg gLoBaL riSK 81

Risk ManagementOverview 81Risk Aggregation and Stress Testing 82Risk Capital 82Credit Risk 83

Loan and Credit Overview 83Loans Outstanding 84Details of Credit Loss Experience 86Impaired Loans, Non-Accrual Loans and Assets, and

Renegotiated Loans 88U.S. Consumer Mortgage Lending 92North America Cards 99Consumer Loan Details 103Consumer Loan Modification Programs 105Consumer Mortgage Representations and Warranties 110Securities and Banking-Sponsored Private Label

Residential Mortgage Securitizations 113Corporate Loan Details 114Exposure to Commercial Real Estate 116

Market Risk 117Operational Risk 126Country and Cross-Border Risk Management Process;

Sovereign Exposure 128deriVaTiVeS 130SigNiFiCaNT aCCouNTiNg PoLiCieS aNd

SigNiFiCaNT eSTimaTeS 134diSCLoSure CoNTroLS aNd ProCedureS 142maNagemeNTS aNNuaL rePorT oN

iNTerNaL CoNTroL oVer FiNaNCiaL rePorTiNg 143

Forward-LooKiNg STaTemeNTS 144rePorT oF iNdePeNdeNT regiSTered

PuBLiC aCCouNTiNg FirmiNTerNaL CoNTroL oVer FiNaNCiaL rePorTiNg 146

rePorT oF iNdePeNdeNT regiSTered PuBLiC aCCouNTiNg FirmCoNSoLidaTed FiNaNCiaL STaTemeNTS 147

FiNaNCiaL STaTemeNTS aNd NoTeS TaBLe oF CoNTeNTS 149

CoNSoLidaTed FiNaNCiaL STaTemeNTS 151NoTeS To CoNSoLidaTed FiNaNCiaL

STaTemeNTS 159FiNaNCiaL daTa SuPPLemeNT (unaudited) 300

Ratios 300Average Deposit Liabilities in Offices Outside the U.S. 300Maturity Profile of Time Deposits ($100,000 or more) in U.S. Offices 300

SuPerViSioN aNd reguLaTioN 301CuSTomerS 302ComPeTiTioN 302ProPerTieS 302LegaL ProCeediNgS 303uNregiSTered SaLeS oF eQuiTy;

PurChaSeS oF eQuiTy SeCuriTieS; diVideNdS 303

PerFormaNCe graPh 304CorPoraTe iNFormaTioN 305

Citigroup Executive Officers 305CiTigrouP Board oF direCTorS 308

24

oVerView

introductionCitigroups history dates back to the founding of Citibank in 1812. Citigroups original corporate predecessor was incorporated in 1988 under the laws of the State of Delaware. Following a series of transactions over a number of years, Citigroup Inc. was formed in 1998 upon the merger of Citicorp and Travelers Group Inc.

Citigroup is a global diversified financial services holding company whose businesses provide consumers, corporations, governments and institutions with a broad range of financial products and services. Citi has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions.

Citigroup currently operates, for management reporting purposes, via two primary business segments: Citicorp, consisting of Citis Regional Consumer Banking businesses and Institutional Clients Group; and Citi Holdings, consisting of Citis Brokerage and Asset Management and Local Consumer Lending businesses, and a Special Asset Pool. There is also a third segment, Corporate/Other. For a further description of the business segments and the products and services they provide, see Citigroup Segments below, Managements Discussion and Analysis of Financial Condition and Results of Operations and Note 4 to the Consolidated Financial Statements.

Throughout this report, Citigroup, Citi and the Company refer to Citigroup Inc. and its consolidated subsidiaries.

Additional information about Citigroup is available on the companys Web site at www.citigroup.com. Citigroups recent annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, as well as its other filings with the SEC are available free of charge through the companys Web site by clicking on the Investors page and selecting All SEC Filings. The SECs Web site also contains periodic and current reports, proxy and information statements, and other information regarding Citi at www.sec.gov.

Within this Form 10-K, please refer to the tables of contents on pages 23 and 149 for page references to Managements Discussion and Analysis of Financial Condition and Results of Operations and Notes to Consolidated Financial Statements, respectively.

At December 31, 2010, Citi had approximately 260,000 full-time employees compared to approximately 265,300 full-time employees at December 31, 2009.

Please see Risk Factors below for a discussion of certain risks and uncertainties that could materially impact Citigroups financial condition and results of operations.

Certain reclassifications have been made to the prior periods financial statements to conform to the current periods presentation.

impact of adoption of SFaS 166/167As previously disclosed, effective January 1, 2010, Citigroup adopted Accounting Standards Codification (ASC) 860, Transfers and Servicing, formerly SFAS No. 166, Accounting for Transfers of Financial Assets, an amendment of FASB Statement No. 140 (SFAS 166), and ASC 810, Consolidations, formerly SFAS No. 167, Amendments to FASB Interpretation No. 46(R) (SFAS 167). Among other requirements, the adoption of these standards includes the requirement that Citi consolidate certain of its credit card securitization trusts and cease sale accounting for transfers of credit card receivables to those trusts. As a result, reported and managed-basis presentations are comparable for periods beginning January 1, 2010. For comparison purposes, prior period revenues, net credit losses, provisions for credit losses and for benefits and claims and loans are presented where indicated on a managed basis in this Form 10-K. Managed presentations were applicable only to Citis North American branded and retail partner credit card operations in North America Regional Consumer Banking and Citi HoldingsLocal Consumer Lending and any aggregations in which they are included. See Capital Resources and Liquidity and Note 1 to the Consolidated Financial Statements for an additional discussion of the adoption of SFAS 166/167 and its impact on Citigroup.

25

As described above, Citigroup is managed pursuant to the following segments:

CiTigrouP SegmeNTS

Regional Consumer Banking

Institutional Clients Group

- Retail banking, local commercial banking and branch-based financial advisors in North America, EMEA, Latin America and Asia; Residential real estate

- Citi-branded cards in North America, EMEA, Latin America and Asia

- Latin America asset management

Securities and Banking

- Investment banking

- Debt and equity markets (including prime brokerage)

- Lending- Private equity- Hedge funds- Real estate - Structured

products- Private Bank- Equity and fixed

income research Transaction Services

- Treasury and trade solutions

- Securities and fund services

Citi Holdings Corporate/Other

Brokerage and Asset Management

- Primarily includes investment in and associated earnings from Morgan Stanley Smith Barney joint venture

- Retail alternative investments

Local Consumer Lending

- Consumer finance lending: residential and commercial real estate; auto, personal and student loans; and consumer branch lending

- Retail partner cards- Investment in

Primerica Financial Services

- Certain international consumer lending (including Western Europe retail banking and cards)

Special Asset Pool- Certain institutional

and consumer bank portfolios

- Treasury - Operations and

technology -Globalstaff

functions and other corporate expenses

- Discontinued operations

Citicorp

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

North America

Europe, Middle East and

Africa (EMEA)

Latin America Asia

CiTigrouP regioNS(1)

(1) Asia includes Japan, Latin America includes Mexico, and North America comprises the U.S., Canada and Puerto Rico.

26

maNagemeNTS diSCuSSioN aNd aNaLySiS oF FiNaNCiaL CoNdiTioN aNd reSuLTS oF oPeraTioNS

eXeCuTiVe Summary

2010 Summary resultsDuring 2010, Citi continued to execute its strategy of growing and investing in its core businesses in CiticorpRegional Consumer Banking, Securities and Banking and Transaction Serviceswhile at the same time winding down the assets and businesses in Citi Holdings in an economically rational manner.

CitigroupCitigroup reported net income for 2010 of $10.6 billion, compared to a net loss of $1.6 billion in 2009. Diluted EPS was $0.35 per share in 2010 versus a loss of $0.80 per share in 2009, and net revenues were $86.6 billion in 2010, versus $91.1 billion in 2009, on a comparable basis. On a reported basis, net interest revenue increased by $5.7 billion, or 12%, to $54.7 billion in 2010, generally as a result of the adoption of SFAS 166/167, partially offset by the continued run-off of higher-yielding assets in Citi Holdings and investments in lower-yielding securities. Non-interest revenues improved by approximately $578 million, or 2%, to $31.9 billion in 2010, primarily due to positive gross revenue marks in the Special Asset Pool in Citi Holdings of $2.0 billion in 2010 versus negative revenue marks of $4.6 billion in 2009, a $11.1 billion gain in 2009 on the sale of Smith Barney, a $1.4 billion pretax gain related to the public and private exchange offers consummated in July and September of 2009, and a $10.1 billion pretax loss associated with the repayment of TARP and the exit from the loss-sharing agreement with the U.S. government in December 2009.

CiticorpDespite continued weaker market conditions, Citicorp net income remained strong in 2010 at $14.9 billion versus $15.3 billion in 2009, with earnings in Asia and Latin America contributing more than half of the total. The continued strength of the core Citi franchise was demonstrated by Citicorp revenues of $65.6 billion for 2010, with a 3% growth in revenues in Regional Consumer Banking on a comparable basis and a 3% growth in Transaction Services, offset by lower revenues in Securities and Banking.

Business drivers in international Regional Consumer Banking reflected the impact in 2010 of the accelerating pace of economic recovery in regions outside of North America and increased investment spending by Citi:

Revenues of $17.7 billion were up 9% year over year.

Net income more than doubled to $4.2 billion.

Average deposits and average loans each grew by 12% year over year.

Card purchase sales grew 17% year over year.

Securities and Banking revenues declined 15% to $23.1 billion in 2010. Excluding the impact of credit value adjustments (CVA), revenues were down 19% year over year to $23.5 billion. The decrease mainly reflected the impact of lower overall client market activity and more challenging global capital market conditions in 2010, as compared to 2009, which was a particularly strong year driven by robust fixed income markets and higher client activity levels in investment banking, especially in the first half of the year.

Citi HoldingsCiti Holdings net loss decreased 52%, from $8.9 billion to $4.2 billion, as compared to 2009. Lower revenues reflected the absence of the $11.1 billion pretax gain on the sale of Smith Barney in 2009 as well as a declining loan balance resulting mainly from asset sales and net paydowns.

Citi Holdings assets stood at $359 billion at the end of 2010, down $128 billion, or 26%, from $487 billion at the end of 2009. Adjusting for the impact of adopting SFAS 166/167, which added approximately $43 billion of assets to the balance sheet on January 1, 2010, Citi Holdings assets were down by $171 billion during 2010, consisting of approximately:

$108 billion in asset sales and business dispositions;

$50 billion of net run-off and paydowns; and

$13 billion of net cost of credit and net asset marks.

As of December 31, 2010, Citi Holdings represented 19% of Citigroup assets, as compared to 38% in the first quarter of 2008. At December 31, 2010, Citi Holdings risk-weighted assets were approximately $330 billion, or 34%, of total Citigroup risk-weighted assets.

Credit CostsGlobal credit continued to recover with the sixth consecutive quarter of sustained improvement in credit costs in the fourth quarter of 2010. For the full year, Citigroup net credit losses declined $11.4 billion, or 27%, to $30.9 billion in 2010 on a comparable basis, reflecting improvement in net credit losses in every region. During 2010, Citi released $5.8 billion in net reserves for loan losses and unfunded lending commitments, primarily driven by international Regional Consumer Banking, retail partner cards in Local Consumer Lending and the Corporate loan portfolio, while it built $8.3 billion of reserves in 2009. The total provision for credit losses and for benefits and claims of $26.0 billion in 2010 decreased 50% on a comparable basis year over year.

Net credit losses in Citicorp declined 10% year-over-year on a comparable basis to $11.8 billion, and Citicorp released $2.2 billion in net reserves for loan losses and unfunded lending commitments, compared to a $2.9 billion reserve build in 2009. Net credit losses in Citi Holdings declined 35% on a comparable basis to $19.1 billion, and Citi Holdings released $3.6 billion in net reserves for loan losses and unfunded lending commitments, compared to a $5.4 billion reserve build in 2009.

27

Operating ExpensesCitigroup operating expenses were down 1% versus the prior year at $47.4 billion in 2010, as increased investment spending, FX translation, and inflation in Citicorp were more than offset by lower expenses in Citi Holdings. In Citicorp, expenses increased 10% year over year to $35.9 billion, mainly due to higher investment spending across all Citicorp businesses as well as FX translation and inflation. In Citi Holdings, operating expenses were down 31% year over year to $9.6 billion, reflecting the continued reduction of assets.

Capital and Loan Loss Reserve PositionsCiti increased its Tier 1 Common and Tier 1 Capital ratios during 2010. At December 31, 2010, Citis Tier 1 Common ratio was 10.8% and its Tier 1 Capital ratio was 12.9%, compared to 9.6% and 11.7% at December 31, 2009, respectively. Tier 1 Common was relatively flat year over year at $105 billion, even after absorbing a $14.2 billion reduction from the impact of SFAS 166/167 in the first quarter, while total risk-weighted assets declined 10% to $978 billion.

Citigroup ended the year with a total allowance for loan losses of $40.7 billion, up $4.6 billion, or 13%, from the prior year, reflecting the impact of adopting SFAS 166/167 which added $13.4 billion on January 1, 2010. The allowance represented 6.31% of total loans and 209% of non-accrual loans as of December 31, 2010, up from 6.09% and 114%, respectively, at the end of 2009. The consumer loan loss reserve was $35.4 billion at December 31, 2010, representing 7.77% of total loans, versus $28.4 billion, or 6.70%, at December 31, 2009.

Liquidity and FundingCitigroup maintained a high level of liquidity, with aggregate liquidity resources (including cash at major central banks and unencumbered liquid securities) of $322 billion at year-end 2010, up from $316 billion at year-end 2009. Citi also continued to grow its deposit base, closing 2010 with $845 billion in deposits, up 1% from year-end 2009. Structural liquidity (defined as deposits, long-term debt and equity as a percentage of total assets) remained strong at 73% as of December 31, 2010, flat compared to December 31, 2009, and up from 66% at December 31, 2008.

Citigroup issued approximately $22 billion (excluding local country and securitizations) of long-term debt in 2010, representing just over half of its 2010 long-term maturities, due to its strong liquidity position and proceeds received from asset reductions in Citi Holdings. For additional information, see Capital Resources and LiquidityFunding and Liquidity below.

2011 Business outlookIn 2011, management will continue its focus on growing and investing in the core Citicorp franchise, while economically rationalizing Citi Holdings. However, Citigroups results will continue to be affected by factors outside of its control, such as the global economic and regulatory environment in the regions in which Citi operates. In particular, the macroeconomic environment in the U.S. remains challenging, with unemployment levels still elevated and continued pressure and uncertainty in the housing market, including home prices. Additionally, the continued implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Financial Reform Act), including the ongoing extensive rulemaking and interpretive issues, as well as the new capital standards for bank holding companies as adopted by the Basel Committee on Banking Supervision (Basel Committee) and U.S. regulators, will remain a significant source of uncertainty in 2011. Moreover, the implementation of the change in methodology for calculating FDIC insurance premiums, to be effective in the second quarter 2011, will have a negative impact on Citis earnings. (For additional information on these factors, see Capital Resources and Liquidity and Risk Factors below.)

In Citicorp, Securities and Banking results for 2011 will depend on the level of client activity and on macroeconomic conditions, market valuations and volatility, interest rates and other market factors. Transaction Services business performance will also continue to be impacted by macroeconomic conditions as well as market factors, including interest rate levels, global economic and trade activity, volatility in capital markets, foreign exchange and market valuations.

In Regional Consumer Banking, results during the year are likely to be driven by different trends in North America versus the international regions. In North America, if economic recovery is sustained, revenues could grow modestly, particularly in the second half of the year, assuming loan demand begins to recover. However, net credit margin in North America will likely continue to be driven primarily by improvement in net credit losses. Internationally, given continued economic expansion in these regions, net credit margin is likely to be driven by revenue growth, particularly in the second half of the year, as investment spending should continue to generate volume growth to outpace spread compression. International credit costs are likely to increase in 2011, reflecting a growing loan portfolio.

In Citi Holdings, revenues for Local Consumer Lending should continue to decline reflecting a shrinking loan balance resulting from paydowns and asset sales. Based on current delinquency trends and ongoing loss-mitigation actions, credit costs are expected to continue to improve. Overall, however, Local Consumer Lending will likely continue to drive results in Citi Holdings.

Operating expenses are expected to show some variability across quarters as the Company continues to invest in Citicorp while rationalizing Citi Holdings and maintaining expense discipline. Although Citi currently expects net interest margin (NIM) to remain under pressure during the first quarter of 2011, driven by continued low yields on investments and the run-off of higher yielding loan assets, NIM could begin to stabilize during the remainder of the year.

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reSuLTS oF oPeraTioNS

FiVe-year Summary oF SeLeCTed FiNaNCiaL daTaPage 1 Citigroup Inc. and Consolidated Subsidiaries

In millions of dollars, except per-share amounts, ratios and direct staff 2010 (1)(2) 2009 (2) 2008 (2) 2007 (2) 2006 (2)

Net interest revenue $ 54,652 $ 48,914 $ 53,749 $ 45,389 $ 37,928Non-interest revenue 31,949 31,371 (2,150) 31,911 48,399

Revenues, net of interest expense $ 86,601 $ 80,285 $ 51,599 $ 77,300 $ 86,327Operating expenses 47,375 47,822 69,240 58,737 50,301Provisions for credit losses and for benefits and claims 26,042 40,262 34,714 17,917 7,537

Income (loss) from continuing operations before income taxes $ 13,184 $ (7,799) $ (52,355) $ 646 $ 28,489Income taxes (benefits) 2,233 (6,733) (20,326) (2,546) 7,749

Income (loss) from continuing operations $ 10,951 $ (1,066) $ (32,029) $ 3,192 $ 20,740Income (loss) from discontinued operations, net of taxes (3) (68) (445) 4,002 708 1,087

Net income (loss) before attribution of noncontrolling interests $ 10,883 $ (1,511) $ (28,027) $ 3,900 $ 21,827Net income (loss) attributable to noncontrolling interests 281 95 (343) 283 289

Citigroups net income (loss) $ 10,602 $ (1,606) $ (27,684) $ 3,617 $ 21,538Less:

Preferred dividendsBasic $ 9 $ 2,988 $ 1,695 $ 36 $ 64Impact of the conversion price reset related to the $12.5 billion

convertible preferred stock private issuanceBasic 1,285 Preferred stock Series H discount accretionBasic 123 37 Impact of the public and private preferred stock exchange offer 3,242 Dividends and undistributed earnings allocated to participating

securities, applicable to Basic EPS 90 2 221 261 512

Income (loss) allocated to unrestricted common shareholders for basic EPS $ 10,503 $ (9,246) $ (29,637) $ 3,320 $ 20,962Less: Convertible preferred stock dividends (540) (877) Add: Incremental dividends and undistributed earnings allocated to participating securities,

applicable to Diluted EPS 2 2

Income (loss) allocated to unrestricted common shareholders for diluted EPS $ 10,505 $ (8,706) $ (28,760) $ 3,320 $ 20,964

Earnings per share

BasicIncome (loss) from continuing operations 0.37 (0.76) (6.39) 0.53 4.07Net income (loss) 0.36 (0.80) (5.63) 0.68 4.29

Diluted (4)

Income (loss) from continuing operations $ 0.35 $ (0.76) $ (6.39) $ 0.53 $ 4.05Net income (loss) 0.35 (0.80) (5.63) 0.67 4.27

Dividends declared per common share 0.00 0.01 1.12 2.16 1.96

Statement continues on the next page, including notes to the table.

29

In millions of dollars, except per-share amounts, ratios and direct staff 2010 (1) 2009 (2) 2008 (2) 2007 (2) 2006 (2)

At December 31Total assets $1,913,902 $1,856,646 $1,938,470 $2,187,480 $1,884,167Total deposits 844,968 835,903 774,185 826,230 712,041Long-term debt 381,183 364,019 359,593 427,112 288,494Mandatorily redeemable securities of subsidiary trusts (included in long-term debt) 18,131 19,345 24,060 23,756 8,972Common stockholders equity 163,156 152,388 70,966 113,447 118,632Total stockholders equity 163,468 152,700 141,630 113,447 119,632Direct staff (in thousands) 260 265 323 375 327

RatiosReturn on average common stockholders equity (5) 6.8% (9.4)% (28.8)% 2.9% 18.8%Return on average total stockholders equity (5) 6.8 (1.1) (20.9) 3.0 18.7Tier 1 Common (6) 10.75% 9.60% 2.30% 5.02% 7.49%Tier 1 Capital 12.91 11.67 11.92 7.12 8.59Total Capital 16.59 15.25 15.70 10.70 11.65Leverage (7) 6.60 6.87 6.08 4.03 5.16Common stockholders equity to assets 8.52% 8.21% 3.66% 5.19% 6.30%Total stockholders equity to assets 8.54 8.22 7.31 5.19 6.35Dividend payout ratio (8) NM NM NM 322.4 45.9Book value per common share $ 5.61 $ 5.35 $ 13.02 $ 22.71 $ 24.15Ratio of earnings to fixed charges and preferred stock dividends 1.52x NM NM 1.01x 1.50x

(1) On January 1, 2010, Citigroup adopted SFAS 166/167. Prior periods have not been restated as the standards were adopted prospectively. See Note 1 to the Consolidated Financial Statements.(2) On January 1, 2009, Citigroup adopted SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements (now ASC 810-10-45-15, Consolidation: Noncontrolling Interest in a Subsidiary), and FSP EITF 03-6-1,

Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities (now ASC 260-10-45-59A, Earnings Per Share: Participating Securities and the Two-Class Method). All prior periods have been restated to conform to the current periods presentation.

(3) Discontinued operations for 2006 to 2009 reflect the sale of Nikko Cordial Securities to Sumitomo Mitsui Banking Corporation, the sale of Citigroups German retail banking operations to Crdit Mutuel, and the sale of CitiCapitals equipment finance unit to General Electric. In addition, discontinued operations for 2006 include the operations and associated gain on sale of substantially all of Citigroups asset management business. Discontinued operations for 2006 to 2010 also include the operations and associated gain on sale of Citigroups Travelers Life & Annuity; substantially all of Citigroups international insurance business; and Citigroups Argentine pension business sold to MetLife Inc. Discontinued operations for the second half of 2010 also reflect the sale of The Student Loan Corporation. See Note 3 to the Consolidated Financial Statements.

(4) The diluted EPS calculation for 2009 and 2008 utilizes basic shares and income allocated to unrestricted common stockholders (Basic) due to the negative income allocated to unrestricted common stockholders. Using diluted shares and income allocated to unrestricted common stockholders (Diluted) would result in anti-dilution.

(5) 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 total stockholders equity is calculated using net income divided by average stockholders equity.

(6) As defined by the banking regulators, the Tier 1 Common ratio represents Tier 1 Capital less qualifying perpetual preferred stock, qualifying noncontrolling interests in subsidiaries and qualifying mandatorily redeemable securities of subsidiary trusts divided by risk-weighted assets.

(7) The Leverage ratio represents Tier 1 Capital divided by adjusted average total assets.(8) Dividends declared per common share as a percentage of net income per diluted share. NM Not meaningful

FiVe-year Summary oF SeLeCTed FiNaNCiaL daTaPage 2 Citigroup Inc. and Consolidated Subsidiaries

30

SegmeNT, BuSiNeSS aNd ProduCTiNCome (LoSS) aNd reVeNueS

The following tables show the income (loss) and revenues for Citigroup on a segment, business and product view:

CiTigrouP iNCome (LoSS)

In millions of dollars 2010 2009 2008% Change

2010 vs. 2009% Change

2009 vs. 2008

Income (loss) from continuing operations

CITICORP

Regional Consumer BankingNorth America $ 607 $ 730 $ (1,504) (17)% NMEMEA 103 (209) 50 NM NMLatin America 1,885 525 (3,083) NM NMAsia 2,172 1,432 1,770 52 (19)%

Total $ 4,767 $ 2,478 $ (2,767) 92% NM

Securities and BankingNorth America $ 2,537 $ 2,385 $ 2,395 6% EMEA 1,832 3,426 588 (47) NMLatin America 1,072 1,536 1,113 (30) 38%Asia 1,138 1,838 1,970 (38) (7)

Total $ 6,579 $ 9,185 $ 6,066 (28)% 51%

Transaction ServicesNorth America $ 544 $ 615 $ 323 (12)% 90%EMEA 1,224 1,287 1,246 (5) 3Latin America 653 604 588 8 3Asia 1,253 1,230 1,196 2 3

Total $ 3,674 $ 3,736 $ 3,353 (2)% 11%Institutional Clients Group $10,253 $ 12,921 $ 9,419 (21)% 37%

Total Citicorp $15,020 $ 15,399 $ 6,652 (2)% NMCITI HOLDINGS

Brokerage and Asset Management $ (203) $ 6,937 $ (851) NM NMLocal Consumer Lending (4,993) (10,416) (8,357) 52% (25)%

Special Asset Pool 1,173 (5,369) (27,289) NM 80

Total Citi Holdings $ (4,023) $ (8,848) $(36,497) 55% 76%

Corporate/Other $ (46) $ (7,617) $ (2,184) 99% NM

Income (loss) from continuing operations $10,951 $ (1,066) $(32,029) NM 97%

Discontinued operations $ (68) $ (445) $ 4,002 NM NMNet income (loss) attributable to noncontrolling interests 281 95 (343) NM NM

Citigroups net income (loss) $10,602 $ (1,606) $(27,684) NM 94%

NM Not meaningful

31

CiTigrouP reVeNueS

In millions of dollars 2010 2009 2008% Change

2010 vs. 2009% Change

2009 vs. 2008

CITICORP

Regional Consumer BankingNorth America $14,790 $ 8,576 $ 8,607 72% %EMEA 1,511 1,555 1,865 (3) (17)Latin America 8,727 7,917 9,488 10 (17)Asia 7,414 6,766 7,461 10 (9)

Total $32,442 $ 24,814 $ 27,421 31% (10)%

Securities and BankingNorth America $ 9,392 $ 8,833 $ 10,821 6% (18)%EMEA 6,842 10,049 5,963 (32) 69Latin America 2,532 3,421 2,374 (26) 44Asia 4,318 4,806 5,570 (10) (14)

Total $23,084 $ 27,109 $ 24,728 (15)% 10%

Transaction ServicesNorth America $ 2,483 $ 2,526 $ 2,161 (2)% 17%EMEA 3,356 3,389 3,677 (1) (8)Latin America 1,490 1,373 1,439 9 (5)Asia 2,705 2,501 2,669 8 (6)

Total $10,034 $ 9,789 $ 9,946 3% (2)%Institutional Clients Group $33,118 $ 36,898 $ 34,674 (10)% 6%

Total Citicorp $65,560 $ 61,712 $ 62,095 6% (1)%CITI HOLDINGS

Brokerage and Asset Management $ 609 $ 14,623 $ 7,963 (96)% 84%Local Consumer Lending 15,826 17,765 23,498 (11) (24)Special Asset Pool 2,852 (3,260) (39,699) NM 92

Total Citi Holdings $19,287 $ 29,128 $ (8,238) (34)% NM

Corporate/Other $ 1,754 $(10,555) $ (2,258) NM NMTotal net revenues $86,601 $ 80,285 $ 51,599 8% 56%

NM Not meaningful

32

CiTiCorP

Citicorp is the Companys global bank for consumers and businesses and represents Citis core franchise. Citicorp is focused on providing best-in-class products and services to customers and leveraging Citigroups unparalleled global network. Citicorp is physically present in approximately 100 countries, many for over 100 years, and offers services in over 160 countries and jurisdictions. Citi believes this global network provides a strong foundation for servicing the broad financial services needs of large multinational clients and for meeting the needs of retail, private banking, commercial, public sector and institutional customers around the world. Citigroups global footprint provides coverage of the worlds emerging economies, which Citi believes represent a strong area of growth. At December 31, 2010, Citicorp had approximately $1.3 trillion of assets and $760 billion of deposits, representing approximately 67% of Citis total assets and approximately 90% of its deposits.

Citicorp consists of the following businesses: Regional Consumer Banking (which includes retail banking and Citi-branded cards in four regionsNorth America, EMEA, Latin America and Asia) and Institutional Clients Group (which includes Securities and Banking and Transaction Services).

In millions of dollars 2010 2009 2008% Change

2010 vs. 2009% Change

2009 vs. 2008

Net interest revenue $38,820 $34,432 $35,328 13% (3)%Non-interest revenue 26,740 27,280 26,767 (2) 2

Total revenues, net of interest expense $65,560 $61,712 $62,095 6% (1)%

Provisions for credit losses and for benefits and claimsNet credit losses $11,789 $ 6,155 $ 4,984 92% 23%Credit reserve build(release) (2,167) 2,715 3,405 NM (20)Provision for loan losses $ 9,622 $ 8,870 $ 8,389 8% 6%Provision for benefits and claims 151 164 176 (8) (7)Provision for unfunded lending commitments (32) 138 (191) NM NM

Total provisions for credit losses and for benefits and claims $ 9,741 $ 9,172 $ 8,374 6% 10%

Total operating expenses $35,859 $32,640 $44,625 10% (27)%

Income from continuing operations before taxes $19,960 $19,900 $ 9,096 NMProvisions for income taxes 4,940 4,501 2,444 10% 84%

Income from continuing operations $15,020 $15,399 $ 6,652 (2)% NMNet income attributable to noncontrolling interests 122 68 29 79 NM

Citicorps net income $14,898 $15,331 $ 6,623 (3)% NM

Balance sheet data (in billions of dollars)

Total EOP assets $ 1,283 $ 1,138 $ 1,067 13% 7%Average assets 1,257 1,088 1,325 16% (18)%

Total EOP deposits 760 734 675 4% 9%

NM Not meaningful

33

regioNaL CoNSumer BaNKiNgRegional Consumer Banking (RCB) consists of Citigroups four RCB businesses that provide traditional banking services to retail customers. RCB also contains Citigroups branded cards business and Citis local commercial banking business. RCB is a globally diversified business with over 4,200 branches in 39 countries around the world. During 2010, 54% of total RCB revenues were from outside North America. Additionally, the majority of international revenues and loans were from emerging economies in Asia, Latin America, Central and Eastern Europe and the Middle East. At December 31, 2010, RCB had $330 billion of assets and $309 billion of deposits.

In millions of dollars 2010 2009 2008% Change

2010 vs. 2009% Change

2009 vs. 2008

Net interest revenue $23,244 $16,404 $17,275 42% (5)%Non-interest revenue 9,198 8,410 10,146 9 (17)

Total revenues, net of interest expense $32,442 $24,814 $27,421 31% (10)%Total operating expenses $16,454 $15,041 $23,618 9% (36)%

Net credit losses $11,221 $ 5,410 $ 4,068 NM 33%Credit reserve build (release) (1,543) 1,819 2,091 NM (13)Provisions for unfunded lending commitments (4) Provision for benefits and claims 151 164 176 (8)% (7)

Provisions for credit losses and for benefits and claims $ 9,825 $ 7,393 $ 6,335 33% 17%Income (loss) from continuing operations before taxes $ 6,163 $ 2,380 $ (2,532) NM NMIncome taxes (benefits) 1,396 (98) 235 NM NM

Income (loss) from continuing operations $ 4,767 $ 2,478 $ (2,767) 92% NMNet income (loss) attributable to noncontrolling interests (9) 11 (100)

Net income (loss) $ 4,776 $ 2,478 $ (2,778) 93% NMAverage assets (in billions of dollars) $ 311 242 268 29% (10)%Return on assets 1.54% 1.02% (1.04)%Total EOP assets $ 330 $ 256 $ 245 29 5Average deposits (in billions of dollars) 295 275 269 7 2

Net credit losses as a percentage of average loans 5.07% 3.63% 2.58%

Revenue by businessRetail banking $15,834 $14,842 $15,427 7% (4)%Citi-branded cards 16,608 9,972 11,994 67 (17)

Total $32,442 $24,814 $27,421 31% (10)%

Income (loss) from continuing operations by businessRetail banking $ 3,231 $ 2,593 $ (3,592) 25% NMCiti-branded cards 1,536 (115) 825 NM NM

Total $ 4,767 $ 2,478 $ (2,767) 92% NM

NM Not meaningful

34

NorTh ameriCa regioNaL CoNSumer BaNKiNgNorth America Regional Consumer Banking (NA RCB) provides traditional banking and Citi-branded card services to retail customers and small to mid-size businesses in the U.S. NA RCBs approximate 1,000 retail bank branches and 13.1 million retail customer accounts are largely concentrated in the greater metropolitan areas of New York, Los Angeles, San Francisco, Chicago, Miami, Washington, D.C., Boston, Philadelphia, and certain larger cities in Texas. At December 31, 2010, NA RCB had $30.7 billion of retail banking and residential real estate loans and $144.8 billion of average deposits. In addition, NA RCB had 21.2 million Citi-branded credit card accounts, with $77.5 billion in outstanding card loan balances.

In millions of dollars 2010 2009 2008% Change

2010 vs. 2009% Change

2009 vs. 2008

Net interest revenue $11,216 $ 5,204 $ 4,332 NM 20%Non-interest revenue 3,574 3,372 4,275 6% (21)

Total revenues, net of interest expense $14,790 $ 8,576 $ 8,607 72% Total operating expenses $ 6,224 $ 5,987 $ 9,105 4% (34)%

Net credit losses $ 8,022 $ 1,151 $ 617 NM 87%Credit reserve build (release) (313) 527 465 NM 13Provisions for benefits and claims 24 50 4 (52)% NM

Provisions for loan losses and for benefits and claims $ 7,733 $ 1,728 $ 1,086 NM 59%Income (loss) from continuing operations before taxes $ 833 861 $(1,584) (3)% NMIncome taxes (benefits) 226 131 (80) 73 NM

Income (loss) from continuing operations $ 607 $ 730 $(1,504) (17)% NMNet income attributable to noncontrolling interests

Net income (loss) $ 607 $ 730 $(1,504) (17)% NMAverage assets (in billions of dollars) $ 119 $ 73 $ 75 63% (3)%Average deposits (in billions of dollars) $ 145 $ 140 $ 125 4% 12%

Net credit losses as a percentage of average loans 7.48% 2.43% 1.39%Revenue by business

Retail banking $ 5,325 $ 5,237 $ 4,613 2% 14%Citi-branded cards 9,465 3,339 3,994 NM (16)

Total $14,790 $ 8,576 $ 8,607 72%

Income (loss) from continuing operations by businessRetail banking $ 771 $ 805 $(1,714) (4)% NMCiti-branded cards (164) (75) 210 NM NM

Total $ 607 $ 730 $(1,504) (17)% NM

NM Not meaningful

2010 vs. 2009Revenues, net of interest expense increased 72% from the prior year, primarily due to the consolidation of securitized credit card receivables pursuant to the adoption of SFAS 166/167 effective January 1, 2010. On a comparable basis, Revenues, net of interest expense, declined 3% from the prior year, mainly due to lower volumes in branded cards as well as the net impact of the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act) on cards revenues. This decrease was partially offset by better mortgage-related revenues.

Net interest revenue was down 6% on a comparable basis driven primarily by lower volumes in cards, with average managed loans down 7% from the prior year, and in retail banking, where average loans declined 11%. The increase in deposit volumes, up 4% from the prior year, was offset by lower spreads in the current interest rate environment.

Non-interest revenue increased 9% on a comparable basis from the prior year mainly driven by better servicing hedge results and higher gains from loan sales in mortgages.

Operating expenses increased 4% from the prior year, driven by the impact of litigation reserves in the first quarter of 2010 and higher marketing costs.

Provisions for loan losses and for benefits and claims increased $6.0 billion primarily due to the consolidation of securitized credit card receivables pursuant to the adoption of SFAS 166/167. On a comparable basis, Provisions for loan losses and for benefits and claims decreased $0.9 billion, or 11%, primarily due to a net loan loss reserve release of $0.3 billion in 2010 compared to a $0.5 billion loan loss reserve build in the prior year, and lower net credit losses in the branded cards portfolio. Also on a comparable basis, the cards net credit loss ratio increased 61 basis points to 10.02%, driven by lower average loans.

35

2009 vs. 2008Revenues, net of interest expense were fairly flat as higher credit losses in the securitization trusts were offset by higher net interest margin in cards, higher volumes in retail banking, and higher gains from loan sales in mortgages.

Net interest revenue was up 20% driven by the impact of pricing actions relating to the CARD Act and lower funding costs in Citi-branded cards, and by higher deposit and loan volumes in retail banking, with average deposits up 12% and average loans up 11%.

Non-interest revenue declined 21%, driven by higher credit losses flowing through the securitization trusts and by the absence of a $349 million gain on the sale of Visa shares and a $170 million gain from a cards portfolio sale in 2008. This decline was partially offset by higher gains from loan sales in mortgages.

Operating expenses declined 34%. Excluding a 2008 goodwill impairment charge of $2.3 billion, expenses were down 12% reflecting the benefits from re-engineering efforts, lower marketing costs, and the absence of $217 million of repositioning charges in 2008 offset by the absence of a $159 million Visa litigation reserve release in 2008.

Provisions for credit losses and for benefits and claims increased $642 million, or 59%, primarily due to rising net credit losses in both cards and retail banking. The continued weakening of leading credit indicators and trends in the macroeconomic environment during the period, including rising unemployment and higher bankruptcy filings, drove higher credit costs. The cards managed net credit loss ratio increased 376 basis points to 9.41%, while the retail banking net credit loss ratio increased 44 basis points to 0.90%.

36

emea regioNaL CoNSumer BaNKiNgEMEA Regional Consumer Banking (EMEA RCB) provides traditional banking and Citi-branded card services to retail customers and small to mid-size businesses, primarily in Central and Eastern Europe, the Middle East and Africa. Remaining activities in respect of Western Europe retail banking are included in Citi Holdings. EMEA RCB has generally repositioned its business, shifting from a strategy of widespread distribution to a focused strategy concentrating on larger urban markets within the region. An exception is Bank Handlowy, which has a mass market presence in Poland. The countries in which EMEA RCB has the largest presence are Poland, Turkey, Russia and the United Arab Emirates. At December 31, 2010, EMEA RCB had 298 retail bank branches with 3.7 million customer accounts, $4.4 billion in retail banking loans and $9.2 billion in average deposits. In addition, the business had 2.5 million Citi-branded card accounts with $2.8 billion in outstanding card loan balances.

In millions of dollars 2010 2009 2008% Change

2010 vs. 2009% Change

2009 vs. 2008

Net interest revenue $ 931 $ 979 $1,269 (5)% (23)%Non-interest revenue 580 576 596 1 (3)

Total revenues, net of interest expense $1,511 $1,555 $1,865 (3)% (17)%Total operating expenses $1,169 $1,094 $1,500 7% (27)%

Net credit losses $ 320 $ 487 $ 237 (34)% NMProvision for unfunded lending commitments (4) NMCredit reserve build (release) (119) 307 75 NM NM

Provisions for loan losses $ 197 $ 794 $ 312 (75)% NMIncome (loss) from continuing operations before taxes $ 145 $ (333) $ 53 NM NMIncome taxes (benefits) 42 (124) 3 NM NM

Income (loss) from continuing operations $ 103 $ (209) $ 50 NM NMNet income (loss) attributable to noncontrolling interests (1) 12 (100)%

Net income (loss) $ 104 $ (209) $ 38 NM NMAverage assets (in billions of dollars) $ 10 $ 11 $ 13 (9)% (15)%Return on assets 1.04% (1.90)% 0.29%Average deposits (in billions of dollars) $ 9 $ 9 $ 11 (18)

Net credit losses as a percentage of average loans 4.34% 5.81% 2.48%

Revenue by businessRetail banking $ 830 $ 889 $1,160 (7)% (23)%Citi-branded cards 681 666 705 2 (6)

Total $1,511 $1,555 $1,865 (3)% (17)%Income (loss) from continuing operations by business

Retail banking $ (40) $ (179) $ (57) 78% NMCiti-branded cards 143 (30) 107 NM NM

Total $ 103 $ (209) $ 50 NM NM

NM Not meaningful

2010 vs. 2009Revenues, net of interest expense declined 3% from the prior-year period. The decrease was due to lower lending revenues, driven by the repositioning of the lending strategy toward better profile customer segments for new acquisitions and liquidation of the existing non-strategic customer portfolios, across EMEA RCB markets. The lower lending revenues were partially offset by a 45% growth in investment sales with assets under management increasing by 14%.

Net interest revenue was 5% lower than the prior year due to lower retail volumes, with average loans for retail banking down 17%.

Non-interest revenue was higher by 1%, reflecting a marginal increase in the contribution from an equity investment in Turkey.

Operating expenses increased by 7%, reflecting targeted investment spending, expansion of the sales force and regulatory and legal expenses.

Provisions for loan losses decreased by $597 million to $197 million. Net credit losses decreased from $487 million to $320 million, while the loan loss reserve had a release of $119 million in 2010 compared to a build of $307 million in 2009. These numbers reflected the ongoing improvement in credit quality during the period.

37

2009 vs. 2008Revenues, net of interest expense declined 17%. More than half of the revenue decline was attributable to the impact of foreign currency translation (FX translation). Other drivers included lower wealth-management and lending revenues due to lower volumes and spread compression from credit tightening initiatives. Investment sales declined by 26% due to market conditions at the start of 2009, with assets under management increasing by 9% by year end.

Net interest revenue was 23% lower than the prior year due to external competitive pressure on rates and higher funding costs, with average loans for retail banking down 18% and average deposits down 18%.

Non-interest revenue decreased by 3%, primarily due to the impact of FX translation. Excluding FX translation, there was marginal growth.

Operating expenses declined 27%, reflecting expense control actions, lower marketing expenses and the impact of FX translation. Cost savings were achieved by branch closures, headcount reductions and process re-engineering efforts.

Provisions for loan losses increased $482 million to $794 million. Net credit losses increased from $237 million to $487 million, while the loan loss reserve build increased from $75 million to $307 million. Higher credit costs reflected the continued credit deterioration across the region during the period.

38

LaTiN ameriCa regioNaL CoNSumer BaNKiNgLatin America Regional Consumer Banking (LATAM RCB) provides traditional banking and Citi-branded card services to retail customers and small to mid-size businesses, with the largest presence in Mexico and Brazil. LATAM RCB includes branch networks throughout Latin America as well as Banco Nacional de Mexico, or Banamex, Mexicos second largest bank, with over 1,700 branches. At December 31, 2010, LATAM RCB had 2,190 retail branches, with 26.6 million customer accounts, $21.3 billion in retail banking loan balances and $42.6 billion in average deposits. In addition, the business had 12.5 million Citi-branded card accounts with $13.4 billion in outstanding loan balances.

In millions of dollars 2010 2009 2008% Change

2010 vs. 2009% Change

2009 vs. 2008

Net interest revenue $6,009 $5,399 $ 6,604 11% (18)%Non-interest revenue 2,718 2,518 2,884 8 (13)

Total revenues, net of interest expense $8,727 $7,917 $ 9,488 10% (17)%Total operating expenses $5,060 $4,438 $ 9,123 14% (51)%

Net credit losses $1,867 $2,433 $ 2,204 (23)% 10%Credit reserve build (release) (826) 462 1,116 NM (59)Provision for benefits and claims 127 114 172 11 (34)

Provisions for loan losses and for benefits and claims $1,168 $3,009 $ 3,492 (61)% (14)%Income (loss) from continuing operations before taxes $2,499 $ 470 $(3,127) NM NMIncome taxes (benefits) 614 (55) (44) NM (25)%Income (loss) from continuing operations $1,885 $ 525 $(3,083) NM NMNet (loss) attributable to noncontrolling interests (8) NM

Net income (loss) $1,893 $ 525 $(3,083) NM NMAverage assets (in billions of dollars) $ 74 66 $ 83 12% (20)%Return on assets 2.56% 0.80% (3.72)%Average deposits (in billions of dollars) $ 40 $ 36 $ 40 11% (10)%Net credit losses as a percentage of average loans 5.79% 8.52% 7.05%

Revenue by businessRetail banking $5,075 $4,435 $ 4,807 14% (8)%Citi-branded cards 3,652 3,482 4,681 5 (26)

Total $8,727 $7,917 $ 9,488 10% (17)%Income (loss) from continuing operations by business

Retail banking $1,039 $ 749 $(3,235) 39% NMCiti-branded cards 846 (224) 152 NM NM

Total $1,885 $ 525 $(3,083) NM NM

NM Not meaningful

2010 vs. 2009Revenues, net of interest expense increased 10%, driven by higher loan volumes and higher investment assets under management in the retail business, as well as the impact of FX translation.

Net interest revenue increased 11%, driven by higher loan volumes, primarily in the retail business, and FX translation impact offset by spread compression.

Non-interest revenue increased 8%, driven by higher branded cards fee income from increased customer activity.

Operating expenses increased 14% as compared to the prior year, primarily driven by investments and the impact of FX translation. The

increase in 2010 was primarily driven by an increase in transaction volumes, higher investment spending and FX translation.

Provisions for loan losses and for benefits and claims decreased 61%, primarily reflecting loan loss reserve releases of $826 million compared to a build of $426 million in the prior year. This decrease resulted from improved credit conditions, improved portfolio quality and lower net credit losses in the branded cards portfolio driven by Mexico, partially offset by higher credit costs attributable to higher volumes, particularly as the year progressed.

39

2009 vs. 2008Revenues, net of interest expense declined 17%, driven by the impact of FX translation as well as lower activity in the branded cards business.

Net interest revenue decreased 18%, mainly driven by FX translation as well as lower volumes and spread compression in the branded cards business that offset the growth in loans, deposits and investment products in the retail business.

Non-interest revenue decreased 13%, driven also by FX translation and lower branded cards fee income from lower customer activity.

Operating expenses decreased 51%, primarily driven by the absence of the goodwill impairment charge of $4.3 billion in 2008, the benefit associated with FX translation and savings from restructuring actions implemented primarily at the end of 2008. A $125 million restructuring charge in 2008 was offset by an expense benefit of $257 million related to a legal vehicle restructuring. Expenses increased slightly in the fourth quarter 2009, primarily due to selected marketing and investment spending.

Provisions for loan losses and for benefits and claims decreased 14% primarily reflecting lower loan loss reserve builds as a result of lower volumes, improved portfolio quality and lower net credit losses in the branded cards portfolio, primarily in Mexico due to repositioning in the portfolio.

40

aSia regioNaL CoNSumer BaNKiNgAsia Regional Consumer Banking (Asia RCB) provides traditional banking and Citi-branded card services to retail customers and small to mid-size businesses, with the largest Citi presence in South Korea, Japan, Taiwan, Singapore, Australia, Hong Kong, India and Indonesia. At December 31, 2010, Asia RCB had 711 retail branches, 16.1 million retail banking accounts, $105.6 billion in average customer deposits, and $61.2 billion in retail banking loans. In addition, the business had 15.1 million Citi-branded card accounts with $20.4 billion in outstanding loan balances.

In millions of dollars 2010 2009 2008% Change

2010 vs. 2009% Change

2009 vs. 2008

Net interest revenue $5,088 $4,822 $5,070 6% (5)%Non-interest revenue 2,326 1,944 2,391 20 (19)

Total revenues, net of interest expense $7,414 $6,766 $7,461 10% (9)%Total operating expenses $4,001 $3,522 $3,890 14% (9)%

Net credit losses $1,012 $1,339 $1,010 (24)% 33%Credit reserve build (release) (285) 523 435 NM 20

Provisions for loan losses and for benefits and claims $ 727 $1,862 $1,445 (61)% 29%Income from continuing operations before taxes $2,686 $1,382 $2,126 94% (35)%Income taxes (benefits) 514 (50) 356 NM NM

Income from continuing operations $2,172 $1,432 $1,770 52% (19)%Net income attributable to noncontrolling interests (1)

Net income $2,172 $1,432 $1,771 52% (19)%Average assets (in billions of dollars) $ 108 $ 93 $ 98 16% (5)%Return on assets 2.01% 1.54% 1.81%Average deposits (in billions of dollars) $ 100 $ 89 $ 93 12% (4)%

Net credit losses as a percentage of average loans 1.36% 2.07% 1.40%

Revenue by businessRetail banking $4,604 $4,281 $4,847 8% (12)%Citi-branded cards 2,810 2,485 2,614 13 (5)

Total $7,414 $6,766 $7,461 10% (9)%Income from continuing operations by business

Retail banking $1,461 $1,218 $1,414 20% (14)%Citi-branded cards 711 214 356 NM (40)

Total $2,172 $1,432 $1,770 52% (19)%

NM Not meaningful

2010 vs. 2009Revenues, net of interest expense increased 10%, driven by higher cards purchase sales, investment sales and loan and deposit volumes, as well as the impact of FX translation, partially offset by lower spreads.

Net interest revenue was 6% higher than the prior-year period, mainly due to higher lending and deposit volumes and the impact of FX translation, partially offset by lower spreads.

Non-interest revenue increased 20%, primarily due to higher investment revenues, higher cards purchase sales, and the impact of FX translation.

Operating expenses increased 14%, primarily due to an increase in volumes, continued investment spending, and the impact of FX translation.

Provisions for loan losses and for benefits and claims decreased 61%, mainly due to the impact of a net credit reserve release of $285 million in 2010, compared to a $523 million net credit reserve build in the prior-

year period, and a 24% decline in net credit losses. These declines were partially offset by the impact of FX translation. The decrease in provision for loan losses and for benefits and claims reflected continued credit quality improvement across the region, particularly in India, partially offset by increasing volumes.

During 2010, the effective tax rate in Japan was approximately 19%, which reflected continued tax benefits (APB 23). These benefits are not likely to continue, or continue at the same levels, in 2011, however, which will likely lead to an increase in the effective tax rate for Asia RCB in 2011.

41

2009 vs. 2008Revenues, net of interest expense declined 9%, driven by the absence of the gain on Visa shares in 2008, lower investment product revenues and cards purchase sales, lower spreads, and the impact of FX translation.

Net interest revenue was 5% lower than in 2008. Average loans and deposits were down 10% and 4%, respectively, in each case partly due to the impact of FX translation.

Non-interest revenue declined 19%, primarily due to the decline in investment revenues, lower cards purchase sales, the absence of the gain on Visa shares and the impact of FX translation.

Operating expenses declined 9%, reflecting the benefits of re-engineering efforts and the impact of FX translation. Expenses increased slightly in the fourth quarter 2009, primarily due to targeted marketing and investment spending.

Provisions for loan losses and for benefits and claims increased 29%, mainly due to the impact of a higher credit reserve build and an increase in net credit losses, partially offset by the impact of FX translation. In the first half of 2009, rising credit losses were particularly apparent in the portfolios in India and South Korea. However, delinquencies improved in the latter part of the year and net credit losses flattened as the region showed early signs of economic recovery and increased levels of customer activity.

42

iNSTiTuTioNaL CLieNTS grouPInstitutional Clients Group (ICG) includes Securities and Banking and Transaction Services. ICG provides corporate, institutional, public sector and high-net-worth clients with a full range of products and services, including cash management, trade finance and services, securities services, trading, underwriting, lending and advisory services, around the world. ICGs international presence is supported by trading floors in approximately 75 countries and a proprietary network within Transaction Services in over 95 countries. At December 31, 2010, ICG had $953 billion of assets and $451 billion of deposits.

In millions of dollars 2010 2009 2008% Change

2010 vs. 2009% Change

2009 vs. 2008

Commissions and fees $ 4,266 $ 4,194 $ 5,136 2% (18)%Administration and other fiduciary fees 2,747 2,850 3,178 (4) (10)Investment banking 3,520 4,687 3,334 (25) 41Principal transactions 5,567 5,626 6,102 (1) (8)Other 1,442 1,513 (1,129) (5) NM

Total non-interest revenue $17,542 $18,870 $16,621 (7)% 14%Net interest revenue (including dividends) 15,576 18,028 18,053 (14)

Total revenues, net of interest expense $33,118 $36,898 $34,674 (10)% 6%Total operating expenses 19,405 17,599 21,007 10 (16)

Net credit losses 568 745 916 (24) (19)Provision (release) for unfunded lending commitments (28) 138 (191) NM NMCredit reserve build (release) (624) 896 1,314 NM (32)

Provisions for loan losses and benefits and claims $ (84) $ 1,779 $ 2,039 NM (13)%Income from continuing operations before taxes $13,797 $17,520 $11,628 (21)% 51%Income taxes 3,544 4,599 2,209 (23) NMIncome from continuing operations $10,253 $12,921 $ 9,419 (21)% 37%Net income attributable to noncontrolling interests 131 68 18 93 NM

Net income $10,122 $12,853 $ 9,401 (21)% 37%

Average assets (in billions of dollars) $ 946 $ 846 $ 1,057 12% (20)%Return on assets 1.07% 1.52% 0.89%

Revenues by regionNorth America $11,875 $11,359 $12,982 5% (13)%EMEA 10,198 13,438 9,640 (24) 39Latin America 4,022 4,794 3,813 (16) 26Asia 7,023 7,307 8,239 (4) (11)

Total $33,118 $36,898 $34,674 (10)% 6%

Income from continuing operations by regionNorth America $ 3,081 $ 3,000 $ 2,718 3% 10%EMEA 3,056 4,713 1,834 (35) NMLatin America 1,725 2,140 1,701 (19) 26Asia 2,391 3,068 3,166 (22) (3)

Total $10,253 $12,921 $ 9,419 (21)% 37%

Average loans by region (in billions of dollars)North America $ 66 $ 52 $ 58 27% (10)%EMEA 38 45 56 (16) (20)Latin America 22 22 25 (12)Asia 36 28 37 29 (24)

Total $ 162 $ 147 $ 176 10% (16)%

NM Not meaningful

43

SeCuriTieS aNd BaNKiNgSecurities and Banking (S&B) offers a wide array of investment and commercial banking services and products for corporations, governments, institutional and retail investors, and high-net-worth individuals. S&B includes investment banking and advisory services, lending, debt and equity sales and trading, institutional brokerage, foreign exchange, structured products, cash instruments and related derivatives, and private banking. S&B revenue is generated primarily from fees for investment banking and advisory services, fees and interest on loans, fees and spread on foreign exchange, structured products, cash instruments and related derivatives, income earned on principal transactions, and fees and spreads on private banking services.

In millions of dollars 2010 2009 2008% Change

2010 vs. 2009% Change

2009 vs. 2008

Net interest revenue $ 9,927 $12,377 $12,568 (20)% (2)%Non-interest revenue 13,157 14,732 12,160 (11) 21

Revenues, net of interest expense $23,084 $27,109 $24,728 (15)% 10%Total operating expenses 14,537 13,084 15,851 11 (17)

Net credit losses 563 742 898 (24) (17)Provisions for unfunded lending commitments (28) 138 (185) NM NMCredit reserve build (release) (560) 892 1,291 NM (31)

Provisions for loan losses and benefits and claims $ (25) $ 1,772 $ 2,004 NM (12)%

Income before taxes and noncontrolling interests $ 8,572 $12,253 $ 6,873 (30)% 78%Income taxes 1,993 3,068 807 (35) NMIncome from continuing operations 6,579 9,185 6,066 (28) 51Net income (loss) attributable to noncontrolling interests 110 55 (13) 100 NM

Net income $ 6,469 $ 9,130 $ 6,079 (29)% 50%

Average assets (in billions of dollars) $ 875 $ 786 $ 986 11% (20)%Return on assets 0.74% 1.16% 0.62%

Revenues by regionNorth America $ 9,392 $ 8,833 $10,821 6% (18)%EMEA 6,842 10,049 5,963 (32) 69Latin America 2,532 3,421 2,374 (26) 44Asia 4,318 4,806 5,570 (10) (14)

Total revenues $23,084 $27,109 $24,728 (15)% 10%

Net income from continuing operations by regionNorth America $ 2,537 $ 2,385 $ 2,395 6% EMEA 1,832 3,426 588 (47) NMLatin America 1,072 1,536 1,113 (30) 38%Asia 1,138 1,838 1,970 (38) (7)

Total net income from continuing operations $ 6,579 $ 9,185 $ 6,066 (28)% 51%

Securities and Banking revenue detailsTotal investment banking $ 3,828 $ 4,767 $ 3,251 (20)% 47%Lending 932 (2,480) 4,771 NM NMEquity markets 3,501 3,183 2,878 10 11Fixed income markets 14,075 21,296 13,606 (34) 57Private bank 2,004 2,068 2,326 (3) (11)Other Securities and Banking (1,256) (1,725) (2,104) 27 18

Total Securities and Banking revenues $23,084 $27,109 $24,728 (15)% 10%

NM Not meaningful

44

2010 vs. 2009Revenues, net of interest expense of $23.1 billion decreased 15%, or $4.0 billion, from $27.1 billion in 2009, which was a particularly strong year driven by robust fixed income markets and higher client activity levels in investment banking, especially in the first half of that year. The decline in revenue was mainly due to fixed income markets, which decreased from $21.0 billion to $14.3 billion (excluding CVA, net of hedges, of negative $0.2 billion and positive $0.3 billion in the current year and prior year, respectively). This decrease primarily reflected weaker results in rates and currencies, credit products and securitized products, due to an overall weaker market environment. Equity markets declined from $5.4 billion to $3.7 billion (excluding CVA, net of hedges, of negative $0.2 billion and negative $2.2 billion in the current year and prior year, respectively), driven by lower trading revenues linked to the derivatives business and principal positions. Investment banking revenues declined from $4.8 billion to $3.8 billion, reflecting lower levels of market activity in debt and equity underwriting. The declines were partially offset by an increase in lending revenues and CVA. Lending revenues increased from negative $2.5 billion to positive $0.9 billion, mainly driven by a reduction in losses on credit default swap hedges. CVA increased $1.6 billion to negative $0.4 billion, mainly due to a larger narrowing of Citigroup spreads in 2009 compared to 2010.

Operating expenses increased 11%, or $1.5 billion. Excluding the 2010 U.K. bonus tax impact and litigation reserve releases in 2010 and 2009, operating expenses increased 8%, or $1.0 billion, mainly as a result of higher compensation and transaction costs.

Provisions for loan losses and for benefits and claims decreased by $1.8 billion, to negative $25 million, mainly due to credit reserve releases and lower net credit losses as the result of an improvement in the credit environment during 2010.

2009 vs. 2008Revenues, net of interest expense of $27.1 billion increased 10%, or $2.4 billion, from $24.7 billion, as markets began to recover in the early part of 2009, bringing back higher levels of volume activity and higher levels of liquidity, which began to decline again in the third quarter of 2009. The growth in revenue was driven mainly by an $8.1 billion increase to $21.0 billion in fixed income markets (excluding CVA, net of hedges, of positive $0.3 billion and positive $0.7 billion in 2009 and 2008, respectively), reflecting strong trading opportunities across all asset classes in the first half of 2009. Equity markets doubled from $2.7 billion to $5.4 billion (excluding CVA, net of hedges, of negative $2.2 billion and positive $0.1 billion in 2009 and 2008, respectively), with growth being driven by derivatives, convertibles, and equity trading. Investment banking revenues grew $1.5 billion, from $3.3 billion to $4.8 billion, primarily from increases in debt and equity underwriting activities reflecting higher transaction volumes from depressed 2008 levels. These increases were partially offset by decreases in lending revenues and CVA. Lending revenues decreased by $7.3 billion, from $4.8 billion to negative $2.5 billion, primarily from losses on credit default swap hedges. CVA decreased from $0.9 billion to negative $2.0 billion, mainly due to the narrowing of Citigroup spreads throughout 2009.

Operating expenses decreased 17%, or $2.8 billion. Excluding the 2008 repositioning and restructuring charges and a 2009 litigation reserve release, operating expenses declined 9%, or $1.4 billion, mainly as a result of headcount reductions and benefits from expense management.

Provisions for loan losses and for benefits and claims decreased 12%, or $232 million, to $1.8 billion, mainly due to lower credit reserve builds and net credit losses, due to an improved credit environment, particularly in the latter part of 2009.

45

TraNSaCTioN SerViCeSTransaction Services is composed of Treasury and Trade Solutions (TTS) and Securities and Fund Services (SFS). TTS provides comprehensive cash management and trade finance and services for corporations, financial institutions and public sector entities worldwide. SFS provides securities services to investors, such as global asset managers, custody and clearing services to intermediaries such as broker-dealers, and depository and agency/trust services to multinational corporations and governments globally. Revenue is generated from net interest revenue on deposits in TTS and SFS, as well as from trade loans and fees for transaction processing and fees on assets under custody and administration in SFS.

In millions of dollars 2010 2009 2008% Change

2010 vs. 2009% Change

2009 vs. 2008

Net interest revenue $ 5,649 $5,651 $5,485 3%Non-interest revenue 4,385 4,138 4,461 6% (7)

Total revenues, net of interest expense $10,034 $9,789 $9,946 3% (2)%Total operating expenses 4,868 4,515 5,156 8 (12)Provisions (releases) for credit losses and for benefits and claims (59) 7 35 NM (80)

Income before taxes and noncontrolling interests $ 5,225 $5,267 $4,755 (1)% 11%Income taxes 1,551 1,531 1,402 1 9Income from continuing operations 3,674 3,736 3,353 (2) 11Net income attributable to noncontrolling interests 21 13 31 62 (58)

Net income $ 3,653 $3,723 $3,322 (2)% 12%

Average assets (in billions of dollars) $ 71 $ 60 $ 71 18% (15)%Return on assets 5.15% 6.21% 4.69%

Revenues by regionNorth America $ 2,483 $2,526 $2,161 (2)% 17%EMEA 3,356 3,389 3,677 (1) (8)Latin America 1,490 1,373 1,439 9 (5)Asia 2,705 2,501 2,669 8 (6)

Total revenues $10,034 $9,789 $9,946 3% (2)%

Income from continuing operations by regionNorth America $ 544 $ 615 $ 323 (12)% 90%EMEA 1,224 1,287 1,246 (5) 3Latin America 653 604 588 8 3Asia 1,253 1,230 1,196 2 3

Total net income from continuing operations $ 3,674 $3,736 $3,353 (2)% 11%

Key indicators (in billions of dollars)Average deposits and other customer liability balances $ 333 $ 304 $ 281 10% 8%EOP assets under custody (in trillions of dollars) 12.6 12.1 11.0 4 10

NM Not meaningful

2010 vs. 2009Revenues, net of interest expense, grew 3% compared to 2009, reflecting a strong year despite a low interest rate environment, driven by growth in both the TTS and SFS businesses. TTS revenues grew 2% as a result of increased customer liability balances and solid growth in trade and fees, partially offset by spread compression. SFS revenues improved by 3% on higher volumes and balances reflecting the impact of sales and increased market activity.

Average deposits and other customer liability balances grew 10%, driven by strong growth in the emerging markets.

Operating expenses grew 8% due to investment spending and higher business volumes.

Provisions for credit losses and for benefits and claims declined as compared to 2009, attributable to overall improvement in portfolio quality.

2009 vs. 2008Revenues, net of interest expense declined 2% compared to 2008 as strong growth in balances was more than offset by lower spreads driven by low interest rates and reduced securities asset valuations globally. TTS revenues grew 7% as a result of strong growth in balances and higher trade revenues. SFS revenues declined 18%, attributable to reductions in asset valuations and volumes.

Average deposits and other customer liability balances grew 8%, driven by strong growth in all regions.

Operating expenses declined 12%, mainly as a result of benefits from expense management and re-engineering initiatives.

Provisions for credit losses and for benefits and claims declined 80%, primarily attributable to overall portfolio management.

46

CiTi hoLdiNgS

Citi Holdings contains businesses and portfolios of assets that Citigroup has determined are not central to its core Citicorp businesses. Consistent with its strategy, Citi intends to exit these businesses as quickly as practicable in an economically rational manner through business divestitures, portfolio run-offs and asset sales. During 2009 and 2010, Citi made substantial progress divesting and exiting businesses from Citi Holdings, having completed more than 30 divestiture transactions, including Smith Barney, Nikko Cordial Securities, Nikko Asset Management, Primerica Financial Services, various credit card businesses (including Diners Club North America) and The Student Loan Corporation (which is reported as discontinued operations within the Corporate/Other segment for the second half of 2010 only). Citi Holdings GAAP assets of $359 billion have been reduced by $128 billion from December 31, 2009, and $468 billion from the peak in the first quarter of 2008. Citi Holdings GAAP assets of $359 billion represent approximately 19% of Citis assets as of December 31, 2010. Citi Holdings risk-weighted assets of approximately $330 billion represent approximately 34% of Citis risk-weighted assets as of December 31, 2010.

Citi Holdings consists of the following: Brokerage and Asset Management, Local Consumer Lending, and Special Asset Pool.

In millions of dollars 2010 2009 2008% Change

2010 vs. 2009% Change

2009 vs. 2008

Net interest revenue $14,773 $ 16,139 $ 21,092 (8)% (23)%Non-interest revenue 4,514 12,989 (29,330) (65) NM

Total revenues, net of interest expense $19,287 $ 29,128 $ (8,238) (34)% NM

Provisions for credit losses and for benefits and claimsNet credit losses $19,070 $ 24,585 $ 14,026 (22)% 75%Credit reserve build (release) (3,500) 5,305 11,258 NM (53)Provision for loan losses $15,570 $ 29,890 $ 25,284 (48)% 18%Provision for benefits and claims 813 1,094 1,228 (26) (11)Provision (release) for unfunded lending commitments (82) 106 (172) NM NM

Total provisions for credit losses and for benefits and claims $16,301 $ 31,090 $ 26,340 (48)% 18%

Total operating expenses $ 9,563 $ 13,764 $ 24,104 (31) (43)%

Loss from continuing operations before taxes $ (6,577) $(15,726) $(58,682) 58% 73%Benefits for income taxes (2,554) (6,878) (22,185) 63 69

(Loss) from continuing operations $ (4,023) $ (8,848) $(36,497) 55% 76%Net income (loss) attributable to noncontrolling interests 207 29 (372) NM NM

Citi Holdings net loss $ (4,230) $ (8,877) $(36,125) 52% 75%

Balance sheet data (in billions of dollars)

Total EOP assets $ 359 $ 487 $ 650 (26)% (25)%

Total EOP deposits $ 79 $ 89 $ 81 (11)% 10%

NM Not meaningful

47

BroKerage aNd aSSeT maNagemeNT Brokerage and Asset Management (BAM), which constituted approximately 8% of Citi Holdings by assets as of December 31, 2010, consists of Citis global retail brokerage and asset management businesses. This segment was substantially reduced in size due to the sale in 2009 of Smith Barney to the Morgan Stanley Smith Barney joint venture (MSSB JV) and of Nikko Cordial Securities (reported as discontinued operations within Corporate/Other for all periods presented). At December 31, 2010, BAM had approximately $27 billion of assets, primarily consisting of Citis investment in, and assets related to, the MSSB JV. Morgan Stanley has options to purchase Citis remaining stake in the MSSB JV over three years starting in 2012.

In millions of dollars 2010 2009 2008% Change

2010 vs. 2009% Change

2009 vs. 2008

Net interest revenue $(277) $ 390 $ 1,280 NM (70)%Non-interest revenue 886 14,233 6,683 (94)% NMTotal revenues, net of interest expense $ 609 $14,623 $ 7,963 (96)% 84%

Total operating expenses $ 951 $ 3,141 $ 8,973 (70)% (65)%

Net credit losses $ 17 $ 1 $ 9 NM (89)%Credit reserve build (release) (18) 36 8 NM NMProvision for unfunded lending commitments (6) (5) (20)% Provision (release) for benefits and claims 38 40 36 (5) 11

Provisions for credit losses and for benefits and claims $ 31 $ 72 $ 53 (57)% 36%Income (loss) from continuing operations before taxes $(373) $11,410 $(1,063) NM NMIncome taxes (benefits) (170) 4,473 (212) NM NM

Income (loss) from continuing operations $(203) $ 6,937 $ (851) NM NMNet income attributable to noncontrolling interests 11 12 (179) (8)% NM

Net income (loss) $(214) $ 6,925 $ (672) NM NM

EOP assets reflecting the sale of Nikko Cordial Securities (in billions of dollars) $ 27 $ 30 $ 31 (10)% (3)%

EOP deposits (in billions of dollars) 58 60 58 (3) 3

NM Not meaningful

2010 vs. 2009Revenues, net of interest expense decreased 96% versus the prior year mainly driven by the absence of the $11.1 billion pretax gain on sale ($6.7 billion after tax) related to the MSSB JV transaction in the second quarter of 2009 and a $320 million pretax gain on the sale of the managed futures business to the MSSB JV in the third quarter of 2009. Excluding these gains, revenue decreased primarily due to the absence of Smith Barney from May 2009 onwards and the absence of Nikko Asset Management, partially offset by higher revenues from the MSSB JV and an improvement in marks in Retail Alternative Investments.

Operating expenses decreased 70% from the prior year, mainly driven by the absence of Smith Barney from May 2009 onwards, lower MSSB JV separation-related costs and the absence of Nikko and Colfondos, partially offset by higher legal settlements and reserves associated with Smith Barney.

Provisions for credit losses and for benefits and claims decreased 57%, mainly due to the absence of credit reserve builds.

Assets decreased 10% versus the prior year, mostly driven by the sales of the Citi private equity business and the run-off of tailored loan portfolios.

2009 vs. 2008Revenues, net of interest expense increased 84% versus the prior year mainly driven by the gain on sale related to the MSSB JV transaction and the gain on the sale of the managed futures business to the MSSB JV. Excluding these gains, revenue decreased primarily due to the absence of Smith Barney from May 2009 onwards and the absence of 2009 fourth-quarter revenue of Nikko Asset Management, partially offset by an improvement in marks in Retail Alternative Investments. Revenues in 2008 included a $347 million pretax gain on the sale of CitiStreet and charges related to the settlement of auction rate securities of $393 million pretax.

Operating expenses decreased 65% from 2008, mainly driven by the absence of Smith Barney and Nikko Asset Management expenses, re-engineering efforts and the absence of 2008 one-time expenses ($0.9 billion intangible impairment, $0.2 billion of restructuring and $0.5 billion of write-downs and other charges).

Provisions for credit losses and for benefits and claims increased 36%, mainly reflecting an increase in reserve builds of $28 million.

Assets decreased 3% versus the prior year, mostly driven by the impact of the sale of Nikko Asset Management.

48

LoCaL CoNSumer LeNdiNg Local Consumer Lending (LCL), which constituted approximately 70% of Citi Holdings by assets as of December 31, 2010, includes a portion of Citigroups North American mortgage business, retail partner cards, Western European cards and retail banking, CitiFinancial North America and other local Consumer finance businesses globally. The Student Loan Corporation is reported as discontinued operations within the Corporate/Other segment for the second half of 2010 only. At December 31, 2010, LCL had $252 billion of assets ($226 billion in North America). Approximately $129 billion of assets in LCL as of December 31, 2010 consisted of U.S. mortgages in the Companys CitiMortgage and CitiFinancial operations. The North American assets consist of residential mortgage loans (first and second mortgages), retail partner card loans, personal loans, commercial real estate (CRE), and other consumer loans and assets.

In millions of dollars 2010 2009 2008% Change

2010 vs. 2009% Change

2009 vs. 2008

Net interest revenue $13,831 $ 12,995 $ 17,136 6% (24)%Non-interest revenue 1,995 4,770 6,362 (58) (25)

Total revenues, net of interest expense $15,826 $ 17,765 $ 23,498 (11)% (24)%

Total operating expenses $ 8,064 $ 9,799 $ 14,238 (18)% (31)%

Net credit losses $17,040 $ 19,185 $ 13,111 (11)% 46%Credit reserve build (release) (1,771) 5,799 8,573 NM (32)Provision for benefits and claims 775 1,054 1,192 (26) (12)Provision for unfunded lending commitments

Provisions for credit losses and for benefits and claims $16,044 $ 26,038 $ 22,876 (38)% 14%

(Loss) from continuing operations before taxes $ (8,282) $(18,072) $(13,616) 54% (33)%Benefits for income taxes (3,289) (7,656) (5,259) 57 (46)

(Loss) from continuing operations $ (4,993) $(10,416) $ (8,357) 52% (25)%Net income attributable to noncontrolling interests 8 33 12 (76) NM

Net (loss) $ (5,001) $(10,449) $ (8,369) 52% (25)%

Average assets (in billions of dollars) $ 324 $ 351 $ 420 (8)% (16)

Net credit losses as a percentage of average loans 6.20% 6.38% 3.80%

NM Not meaningful

2010 vs. 2009 Revenues, net of interest expense decreased 11% from the prior year. Net interest revenue increased 6% due to the adoption of SFAS 166/167, partially offset by the impact of lower balances due to portfolio run-off and asset sales. Non-interest revenue declined 58%, primarily due to the absence of the $1.1 billion gain on the sale of Redecard in the first quarter of 2009 and a higher mortgage repurchase reserve charge.

Operating expenses decreased 18%, primarily due to the impact of divestitures, lower volumes, re-engineering actions and the absence of costs associated with the U.S. government loss-sharing agreement, which was exited in the fourth quarter of 2009.

Provisions for credit losses and for benefits and claims decreased 38%, reflecting a net $1.8 billion credit reserve release in 2010 compared to a $5.8 billion build in 2009. Lower net credit losses across most businesses were partially offset by the impact of the adoption of SFAS 166/167. On a comparable basis, net credit losses were lower year-over-year, driven by improvement in U.S. mortgages, international portfolios and retail partner cards.

Assets declined 21% from the prior year, primarily driven by portfolio run-off, higher loan loss reserve balances, and the impact of asset sales and divestitures, partially offset by an increase of $41 billion resulting from the adoption of SFAS 166/167. Key divestitures in 2010 included The Student Loan Corporation, Primerica, auto loans, the Canadian Mastercard business and U.S. retail sales finance portfolios.

2009 vs. 2008 Revenues, net of interest expense decreased 24% from the prior year. Net interest revenue was 24% lower than the prior year, primarily due to lower balances, de-risking of the portfolio, and spread compression. Non-interest revenue decreased $1.6 billion, mostly driven by the impact of higher credit losses flowing through the securitization trusts, partially offset by the $1.1 billion gain on the sale of Redecard in the first quarter of 2009.

Operating expenses declined 31% from the prior year, due to lower volumes and reductions from expense re-engineering actions, and the impact of goodwill write-offs of $3.0 billion in the fourth quarter of 2008, partially offset by higher costs associated with delinquent loans.

Provisions for credit losses and for benefits and claims increased 14% from the prior year, reflecting an increase in net credit losses of $6.1 billion, partially offset by lower reserve builds of $2.8 billion. Higher net credit losses were primarily driven by higher losses of $3.6 billion in residential real estate lending, $1.0 billion in retail partner cards, and $0.7 billion in international.

Assets decreased $57 billion from the prior year, primarily driven by lower originations, wind-down of specific businesses, asset sales, divestitures, write-offs and higher loan loss reserve balances. Key divestitures in 2009 included the FI credit card business, Italy Consumer finance, Diners Europe, Portugal cards, Norway Consumer and Diners Club North America.

49

Japan Consumer FinanceCitigroup continues to actively monitor a number of matters involving its Japan Consumer Finance business, including customer refund claims and defaults, as well as financial and legislative, regulatory, judicial and other political developments, relating to the charging of gray zone interest. Gray zone interest represents interest at rates that are legal but for which claims may not be enforceable. Although Citi determined in 2008 to exit its Japan Consumer Finance business and has been liquidating its portfolio and otherwise winding down the business, this business has incurred, and will continue to face, net credit losses and refunds, due in part to legislative, regulatory and judicial actions taken in recent years. These actions may also reduce credit availability and increase potential claims and losses relating to gray zone interest.

In September 2010, one of Japans largest consumer finance companies (Takefuji) declared bankruptcy and is currently in the process of restructuring, with court protection and assistance. Citi believes this action reflects the financial distress that Japan's top consumer finance lenders are facing as they continue to dea