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CITIBANK, N.A.
New Zealand Branch
and Associated Banking Group
DISCLOSURE STATEMENT
30 June 2011
GENERAL DISCLOSURES
Registered Bank: Directorate and Responsible Persons
Responsible Person of Citibank, N.A. in New Zealand
Derek Syme
Citigroup Country Officer
Citibank, N.A. New Zealand Branch
Responsible Person of Citibank, N.A. signing as agent for all Citibank, N.A. directors
James F. McCue
Deputy Controller
Head of Corporate and Regulatory Reporting
Citigroup Inc.
Directors of Citibank, N.A.
Jerry A. Grundhofer
Eugene M. McQuade
Timothy C. Collins
Robert L. Joss
Michael E. O'Neill
Lawrence R. Ricciardi
Robert L. Ryan
Anthony M. Santomero
Ernesto Zedillo
Guarantee Arrangements
Citibank, N.A. New Zealand Branch
Auditors of Citigroup Inc. and Citibank, N.A. New Zealand Branch and Associated Banking Group
Name and address for Service of any auditor whose report is referred to in the Disclosure Statement
Citigroup Inc. KPMG LLP
Independent Registered Public Accountant Firm
345 Park Avenue
New York, New York 10154
KPMG
Chartered Accountants
10 Shelley Street
Sydney, NSW 2000
Australia
Conditions of Registration
The following changes have occurred to the conditions of registration and apply on or after 1 July 2011.
Citibank, N.A. New Zealand Branch does not have any guarantees over any material obligations as at 30 August 2011.
The term "the New Zealand Branch of Citibank, N.A. ('the registered bank') is now "Citibank, N.A. ('the registered bank') in New Zealand".
The definition of the registered bank has been altered in clause 3 to now read "That the business of the registered bank in New Zealand does not constitute a predominate
proportion of its total business".
The term "Banking Group" has been redefined to read "the New Zealand operations of Citibank, N.A. and its subsidiaries whose business is required to be reported in
group financial statements for the group's New Zealand business prepared in accordance with Section 9(2) of the Financial Reporting Act 1993".
GENERAL DISCLOSURE STATEMENT
The financial statements are those of the aggregated financial statements for the New Zealand Branch and the Associated Banking Group (the "Banking Group").
The ultimate holding company of the Banking Group is Citigroup Inc. which is a global diversified financial services holding company whose businesses provide a broad
range of financial services to consumer and corporate customers.
CITIBANK, N.A. NEW ZEALAND BRANCH AND ASSOCIATED BANKING GROUP
Jerry A. Grundhofer resigned from Citibank, N.A.'s board of directors on 23 June 2011. There have been no other changes to the board of directors since the last full year
disclosure statement dated 31 December 2010.
Citibank, N.A. New Zealand Branch and
Associated Banking Group
1
Non-consolidated Activities
Citibank, N.A. does not conduct any insurance business or non-financial business in New Zealand.
Credit Ratings
Citibank, N.A.
Current Rating
Moody’s A1 (ratings under revew down)
Standard & Poor’s A+ (negative)
Fitch A+ (watch negative)
Citibank, N.A. New Zealand Branch
No material qualifications attach to the obligations and the ratings have not been withdrawn.
Other Material Matters
Financial Statements of the the Registered Bank, Overseas Banking Group and Overseas Bank
Citibank, N.A. is an indirect wholly-owned subsidiary of Citigroup Inc.
Financial Information of the Overseas Banking Group
(The following information has not been audited)
30-Jun-11 30-Jun-10
Profitability
Net Profit/(Loss) after tax for the six months ended 1,863,000 4,920,000
0.41% 0.31%
Size (refer Note 1)
Total Assets as at 1,216,291,000 1,157,877,000
5.04% -0.65%
Asset Quality (refer Note 1 and 2)
Total Impaired Assets as at 22,343,000 28,432,000
1.84% 2.46%
Total Individual Credit Impaired Allowance as at - -
0.00% 0.00%
Total Collective Credit Impairment Allowance as at - -
0.00% 0.00%
Total individually impaired assets for Citibank, N.A. are not included because such figures are not publicly available.
Total Individual Credit Impaired Allowance as a percentage of Total Impaired Assets
Total Collective Credit Impairment Allowance as a percentage of Total Impaired Assets
(Thousands of US Dollars)
Standard & Poor’s, Moody's and Fitch have an implied rating equal to Citibank, N.A. as Citibank, N.A. New Zealand Branch is part of the same legal vehicle.
Any person, upon request and without charge, may obtain a copy of Citibank, N.A. New Zealand Branch and Associated Banking Group's most recent Disclosure
Statement, which contains a copy of the most recent publicly available consolidated financial statements of Citibank, N.A. (the Citibank Call Report for the six months
ended June 30, 2011), and the Citigroup Inc. Quarterly Report on Form 10-Q for the quarter ended June 30, 2011, immediately by requesting a copy from Citibank, N.A.’s
New Zealand office in Auckland. It is available on the Bank's website 'www.citi.co.nz' .
Net Profit/(Loss) after tax over the previous twelve months as a percentage of average total assets
Total Impaired Assets as a percentage of Total Assets
Percentage Change in total assets over the previous twelve months
Citibank, N.A. has the following long-term debt ratings which are applicable to the New Zealand Branch’s long-term senior unsecured obligations which are payable in
New Zealand in New Zealand dollars.
Impaired assets for Citibank, N.A. consist of non-accrual loans, restructured loans, other non-accrual assets and other real estate owned. Citibank, N.A. maintains an
allowance that is available to absorb all probable credit losses inherent in its portfolio. The allowance for loan and lease losses at 30 June 2011 is US$15,945 million (30
June 2010: US$20,872).
There are no matters relating to the business affairs of Citibank, N.A. New Zealand branch and Associated Banking Group which are not contained elsewhere in the
General Disclosure Statement which if disclosed would materially adversely affect the decision of a person to subscribe for Debt Securities of which Citibank, N.A. New
Zealand Branch is an issuer.
The information relating to Citibank, N.A. contained in the General Disclosure Statement is derived from, and is qualified in its entirety by reference to, the detailed
information and consolidated financial statements included in the Citibank Call Report for the six months ended June 30, 2011, which is included as part of the Disclosure
Statement. Citibank, N.A. prepares its Call Reports in accordance with regulatory instructions issued by the Federal Financial Institutions Examination Council. In 1997,
the FFIEC adopted U.S. GAAP as the reporting basis for the balance sheet, income statement and related schedules included in the Call Report. However, the presentation
of financial statements in the Call Reports differs significantly from the presentation of financial statements included in Citigroup Inc.'s Annual Reports on Form 10-K and
Quarterly Reports on Form 10-Q filed with the U.S. Securities and Exchange Commission and Citibank, N.A.'s audited financials filed with the Federal Deposit Insurance
Corporation. In addition, the Call Reports generally contain less disclosure than audited financial statements prepared in accordance with U.S. GAAP.
2
CITIBANK, N.A. NEW ZEALAND BRANCH AND ASSOCIATED BANKING GROUP
STATEMENTS OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2011
NOTE 30-Jun-11 30-Jun-10 31-Dec-10
$(000's) $(000's) $(000's)
unaudited unaudited audited
Interest Income 36,637 37,126 74,375
Interest Expense 16,301 18,431 34,755
NET INTEREST INCOME 20,336 18,695 39,620
Operating Revenue/(Loss) 3 (658) 2,651 2,154
19,678 21,346 41,774
Operating Expenses 7,827 9,171 18,714
OPERATING PROFIT BEFORE INCOME TAX 11,851 12,175 23,060
PROFIT BEFORE INCOME TAX 11,851 12,175 23,060
Income Tax Expense 3,352 4,047 7,384
PROFIT AFTER INCOME TAX 8,499 8,128 15,676
Other Comprehensive Income
Available For Sale Reserve
Fair value gain taken directly to equity 516 177 177
Tax on movements and transfers (144) (53) (53)
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF TAX 372 124 124
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 8,871 8,252 15,800
The accompanying notes form part of these financial statements and supplementary information.
Banking Group
3
CITIBANK, N.A. NEW ZEALAND BRANCH AND ASSOCIATED BANKING GROUP
STATEMENTS OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2011
NOTE 30-Jun-11 30-Jun-10 31-Dec-10
$(000's) $(000's) $(000's)
unaudited unaudited audited
Capital
Citicorp Services Limited
Authorized, Issued and Paid-Up Capital
28,595 28,595 28,595
28,595 28,595 28,595
Head Office Account
Citibank, N.A. New Zealand Branch
At the beginning of the period 32,808 32,498 32,498
Contribution from Head Office 6 1 310
At the end of the period 32,814 32,499 32,808
Available For Sale Reserve
At the beginning of the period - (124) (124)
Other comprehensive income 372 124 124
At the end of the period 372 - -
Retained earnings
At the beginning of the period 84,983 69,307 69,307
Profit after tax 8,499 8,128 15,676
At the end of the period 93,482 77,435 84,983
Equity at the end of the period 155,263 138,529 146,386
Represented by :
Equity at the beginning of the period 146,386 130,276 130,276
Transactions with owners, recorded directly in equity
Contribution from Head Office 6 1 310
Total transactions with owners 6 1 310
Total Comprehensive Income for the six months
Profit for the six months 8,499 8,128 15,676
Other comprehensive income
Net change in fair value of available for sale securities 516 124 177
Income tax on other comprehensive income (144) - (53)
Total other comprehensive income 372 124 124
Total Comprehensive Income for the period 8,871 8,252 15,800
Equity at the end of the period 155,263 138,529 146,386
The accompanying notes form part of these financial statements and supplementary information.
- 25,000,000 (2010: 25,000,000) Ordinary Shares, fully paid
Banking Group
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CITIBANK, N.A. NEW ZEALAND BRANCH AND ASSOCIATED BANKING GROUP
STATEMENTS OF FINANCIAL POSITION
AS AT 30 JUNE 2011
NOTE 30-Jun-11 30-Jun-10 31-Dec-10
$(000's) $(000's) $(000's)
unaudited unaudited audited
ASSETS
Cash and Demand Deposits with Central Banks 992,843 666,087 999,993
Advances to Financial Institutions at Call 200,321 201 200,882
Due from Related Parties 7 65,378 818,736 77,037
650,488 827,544 1,000,356
Derivative Financial Instruments 16,317 26,257 21,203
Current Tax Assets 790 1,696 285
Available for Sale Securities 107,066 - -
Loans and Advances 5 393,886 280,868 377,190
Other Assets 4,897 3,980 3,261
Deferred Tax Assets 903 1,084 1,320
Property Plant and Equipment 175 179 167
TOTAL ASSETS 2,433,064 2,626,632 2,681,694
LIABILITIES
Deposits from Other Banks 21,594 23,061 26,115
Due to Related Parties 7 1,034,149 1,227,001 1,172,699
Other Deposits 1,175,520 1,196,862 1,280,928
Derivative Financial Instruments 35,493 28,742 45,314
Provisions 201 201 201
Other Liabilities 10,844 12,236 10,051
TOTAL LIABILITIES 2,277,801 2,488,103 2,535,308
EQUITY
Issued and Paid-Up Capital 28,595 28,595 28,595
Head Office Account 32,814 32,499 32,808
Available for sale reserves 372 - -
Retained Earnings 93,482 77,435 84,983
TOTAL EQUITY 155,263 138,529 146,386
TOTAL LIABILITIES AND EQUITY 2,433,064 2,626,632 2,681,694
Total Interest Earning and Discount Bearing Assets 2,409,982 2,593,436 2,655,458
Total Interest and Discount Bearing Liabilities 2,231,263 2,446,924 2,479,742
The accompanying notes form part of these financial statements and supplementary information.
Banking Group
Financial Assets at Fair Value through the Income Statement
5
CITIBANK, N.A. NEW ZEALAND BRANCH AND ASSOCIATED BANKING GROUP
STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 JUNE 2011
NOTE 30-Jun-11 30-Jun-10 31-Dec-10
$(000's) $(000's) $(000's)
CASH FLOWS FROM OPERATING ACTIVITIES unaudited unaudited audited
Cash was provided from:
Interest Income 35,960 36,804 75,169
Trading Gain - - 13,672
Other Income 7,218 8,519 9,098
Decrease in available for sale financial assets - 25,185 25,185
Decrease in placements/loans - 11,800 -
Decrease in financial assets at fair value 350,615 279,568 107,406
Decrease in placements due from related companies 859 830,305 1,613,106
Increase in customer deposits - 82,072 169,187
394,652 1,274,253 2,012,823
Cash was applied to:
Interest Expense 16,814 23,196 39,848
Trading Loss 12,073 1,681 -
Tax Paid 3,568 5,292 7,601
Other Expenses 9,458 9,695 16,923
Increase in placements/loans 16,696 - 84,522
Increase in available for sale financial assets 106,034 - -
Decrease in customer deposits 109,924 - -
Decrease in deposits due to related parties 138,538 971,054 1,019,568
Net cashflow from operating activities (18,453) 263,335 844,361
CASH FLOWS FROM INVESTING ACTIVITIES
Cash was provided from:
Sale of fixed assets - 19 19
Cash was applied to:
Purchase of fixed assets 31 - 10
Net cashflow from investing activities (31) 19 9
CASH FLOWS FROM FINANCING ACTIVITIES
Cash was provided from:
Increase in Head Office account (10) 36 492
Net cashflow from financing activities (10) 36 492
Net increase/(decrease) in cash (18,494) 263,390 844,862
Opening cash and cash equivalents 1,244,131 399,269 399,269
Closing cash and cash equivalents 1,225,637 662,659 1,244,131
The accompanying notes form part of these financial statements and supplementary information.
Banking Group
6
CITIBANK, N.A. NEW ZEALAND BRANCH AND ASSOCIATED BANKING GROUP
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
FOR THE SIX MONTHS ENDED 30 JUNE 2011
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
a) Statement of compliance
b) Basis of preparation
The amounts in the financial report have been rounded off to the nearest thousand dollars, unless otherwise stated.
c) Changes in accounting policy
2. FINANCIAL RISK MANAGEMENT
These interim financial statements were authorised for issue by Citibank, N.A. under power of attorney and by the boards of directors of Citicorp Services Limited and its
subsidiaries on this 30th day of August 2011.
There have been no material changes in accounting policies since the last annual financial statements dated 31 December 2010.
The entity’s interim financial statements have been prepared in accordance with the requirements of the Registered Bank Disclosure Statements (Overseas Incorporated
Registered Banks) Order (No 2) 2011 and NZ IAS 34 Interim Financial Reporting . These financial statements should be read in conjunction with the consolidated
financial statements for the year ended 31 December 2010.
The financial statements are those of the aggregated financial statements for the New Zealand Branch and the Associated Banking Group (the "Banking Group").
There have been no material changes in the Banking Group's policies for managing risk, or material exposure to any new types of risk since the last annual financial
statements dated 31 December 2010.
The financial report is prepared on the historical cost basis except that the following assets and liabilities are stated at their fair value: derivative financial instruments,
financial instruments at fair value through the income statement, and available for sale securities.
The ultimate holding company of the Banking Group is Citigroup Inc. which is a global diversified financial services holding company whose businesses provide a broad
range of financial services to consumer and corporate customers.
The financial report is presented in New Zealand dollars.
7
CITIBANK, N.A. NEW ZEALAND BRANCH AND ASSOCIATED BANKING GROUP
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
FOR THE SIX MONTHS ENDED 30 JUNE 2011
30-Jun-11 30-Jun-10 31-Dec-10
3. OPERATING REVENUE/(LOSS) $(000's) $(000's) $(000's)
unaudited unaudited audited
Net Trading Gains/(Losses) (5,874) (2,504) (8,165)
Other Operating Revenue 5,216 5,155 10,319
(658) 2,651 2,154
4. TOTAL LIABILITIES TO THIRD PARTIES
Deposits from Other Banks 21,594 23,061 26,115
Other Deposits 1,175,520 1,196,862 1,280,928
Other Liabilities 10,668 11,402 9,024
1,207,782 1,231,325 1,316,067
5. IMPAIRED ASSETS
30-Jun-11 30-Jun-10 31-Dec-10
$(000's) $(000's) $(000's)
Past Due Assets unaudited unaudited audited
less than 30 days past due - - 16
at least 30 days but less than 60 days past due 20 - -
at least 60 days but less than 90 days past due 37 - 983
57 - 999
6. CASHFLOW STATEMENT
30-Jun-11 30-Jun-10 31-Dec-10
$(000's) $(000's) $(000's)
CASH AND CASH EQUIVALENTS COMPRISE unaudited unaudited audited
Cash Balances with Third Parties 1,193,164 666,288 1,200,870
Cash Balances with Related Parties 32,473 (3,629) 43,261
1,225,637 662,659 1,244,131
RECONCILIATION OF NET PROFIT AFTER TAX TO NET CASH FLOWS FROM OPERATING ACTIVITIES
Net Profit after Tax 8,499 8,128 15,676
Add back
Depreciation 23 22 44
Decrease in accrual of interest income - - 794
Increase in accrual of other expenses/income 433 3,008 643
Decrease in operating assets and liabilities - 257,876 810,794
Decrease in accrual of revaluations - 861 21,837
Decrease in accrual of tax - - -
Deduct
Increase in operating assets and liabilities 19,717 - -
Decrease in accrual of other expenses/income - - -
Decrease in accrual of interest expense 513 4,765 5,093
Increase in accrual of interest income 677 322 -
Decrease in accrual of fees and commissions 87 228 117
Increase in accrual of revaluations 6,198 - -
Increase in accrual of tax 216 1,245 217
Net Cash Flow from Operating Activities (18,453) 263,335 844,361
7. RELATED PARTIES TRANSACTIONS
(a) ULTIMATE HOLDING COMPANY
The cashflow statement that forms part of the Financial Statements has been prepared on the net cash flows of this entity. The reason for this presentation is that the
business of banking produces cash receipts and payments for items in which their turnover is quick, the amounts are large and the maturities are short. The reporting of
gross turnover of these items would not assist in the understanding of these Financial Statements.
The ultimate parent of Citibank, N.A. New Zealand Branch, Citicorp Services Limited, TwoStarz Limited and Citibank Nominees (New Zealand) Limited (Associated
Banking Group) is Citigroup Inc. These financial statements reflect only the operations of the New Zealand branch of Citibank, N.A. and Associated Banking Group. The
financial statements of Citigroup Inc. should be read in conjunction with these statements.
Banking Group
Banking Group
Cash and cash equivalents include cash on hand, deposits held overnight or on call with financial institutions, nostro accounts and other short term highly liquid assets
which are subject to insignificant risk of change in their fair value and are used by the entity in the management of its short term commitments .
Citibank, N.A. New Zealand Branch and Associated Banking Group have no impaired assets, restructured assets, assets (including real estate) acquired through the
enforcement of security, 90 day past due assets or other assets under administration.
Branch
Banking Group
8
CITIBANK, N.A. NEW ZEALAND BRANCH AND ASSOCIATED BANKING GROUP
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
FOR THE SIX MONTHS ENDED 30 JUNE 2011
30-Jun-11 30-Jun-10 31-Dec-10
$(000's) $(000's) $(000's)
unaudited unaudited audited
(b) TRANSACTIONS
Interest Received - Head Office (including other branches) 699 6,389 6,833
Interest Received - Other Related Parties 361 1,421 1,958
Interest Paid - Head Office (including other branches) 4,107 4,258 7,377
Interest Paid - Other Related Parties 919 2,646 3,788
Net Trading (Losses) - Head Office (including other branches) (1,578) (1,584) (8,165)
Management Fees (Paid) - Head Office (including other branches) (1,045) (2,608) (5,744)
(c) BALANCES
Due from Related Parties - Head Office (including other branches) 36,565 538,613 75,742
Due from Related Parties - Other Related Parties 28,813 280,123 1,295
Derivative Financial Instruments - Head Office (including other branches) 16,317 26,257 21,203
Other Assets - Head Office (including other branches) 2,289 1,853 1,451
Other Assets - Other Related Parties 100 718 18
84,084 847,564 99,709
Due to Related Parties - Head Office (including other branches) 993,829 1,169,466 1,085,894
Due to Related Parties - Other Related Parties 40,320 57,535 86,805
Derivative Financial Instruments - Head Office (including other branches) 35,493 28,742 45,314
Other Liabilities - Head Office (including other branches) 303 719 1,068
Other Liabilities - Other Related Parties 74 126 160
1,070,019 1,256,588 1,219,241
Interest Rate - Swap (Notional Value) - Head Office (including other branches) 508,000 919,100 878,100
Foreign Exchange Forwards (Notional Value) - Head Office (including other branches) 670,293 1,164,940 668,525
8. CAPITAL MANAGEMENT
All liabilities are unsecured and were transacted at the prevailing market rates.
- To ensure that capital is maintained at a level that meets Thin Capitalisation Rules and to support the case for any capital surplus repatriation back to New York;
Financial instruments, both on and off-balance sheet, are entered into by the bank in the normal course of business to provide financial services to customers, to manage its
exposure to risk and for trading purposes.
The major business is conducted in Citibank, N.A. with no significant activity carried out in the banking group. The capital management plan is therefore prepared on a
consolidated level covering both branch and banking group.
Banking Group
The objectives of this Capital Management Plan are:
- To ensure sufficient liquidity, limits and ratios are in place to support any asset growth.
- To ensure that the entity maintains an appropriate level of capital commensurate to its risks and to support new business initiatives and growth;
Financial instrument transactions are subject to credit standards, financial controls, and risk-limiting and monitoring procedures. Collateral requirements are determined by
evaluating each customer and product, and will include cash and mortgages.
Citibank, N.A. New Zealand Branch, as a full branch of Citibank, N.A., has a banking license but is not subject to any minimum capital requirements in New Zealand due
to its branch status other than the requirement to comply with Thin Capitalisation Rules. The compliance with the minimum capital adequacy requirements is administered
at the US parent entity level.
All Citigroup Inc. entities within New Zealand are grouped for tax reporting purposes. This group includes the Branch, the Associated Banking Group and Citigroup
Global Markets entities. There were no outstanding tax balances at 30 June 2011 between these entities.
All transactions with related parties are at commercial arms length terms and rates. These are conducted predominately with other Citibank, N.A. branches and in the case
of the Branch, the Associated Banking Group as well.
The credit equivalent amounts for off balance sheet exposures are determined in accordance with the current exposure method under the Reserve Bank of New Zealand’s
risk weighted capital adequacy guidelines.
The contract or notional values of these instruments reflect the volume of the bank's activities in these products and do not represent the much smaller amounts potentially
subject to risk.
9
CITIBANK, N.A. NEW ZEALAND BRANCH AND ASSOCIATED BANKING GROUP
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
FOR THE SIX MONTHS ENDED 30 JUNE 2011
RISK WEIGHTED EXPOSURES Principal Risk Risk-Wgtd
Amount Weight Exposure
$(000's) $(000's)
(1) Balance Sheet Exposure - 30 June 2011 (unaudited)
Cash and Short Term Claims on Government 1,043,853 0% -
Long Term Claims on Government 158,695 10% 15,869
Claims on Banks 813,548 20% 162,710
Other 400,651 100% 400,651
Total Assets 2,416,747 579,230
Credit Credit Counter-
Principal Conver. Equiv. party Risk-Wgtd
Amount Factor Amount Risk Weight Exposure
$(000's) $(000's) $(000's)
(2) Off-Balance Sheet Exposure - 30 June 2011 (unaudited)
Other commitments to provide financial services with original maturity
of 1 year or more 258,659 50% 129,330 95.5% 123,544
Other commitments with an original maturity of less than 1 year or which
can be unconditionally cancelled at any time 409,479 0% - 0.0% -
Market related contracts
Foreign exchange 670,293 n/a 6,703 20.0% 1,341
Interest rate 508,000 n/a 18,357 20.0% 3,671
Total Risk-Weighted Exposures 2,571,137 707,786
Principal Risk Risk-Wgtd
Amount Weight Exposure
$(000's) $(000's)
(1) Balance Sheet Exposure - 30 June 2010 (unaudited)
Cash and Short Term Claims on Government 666,087 0% -
Long Term Claims on Government 50,507 10% 5,051
Claims on Banks 1,595,974 20% 319,195
Other 287,807 100% 287,807
Total Assets 2,600,375 612,053
Credit Credit Counter-
Principal Conver. Equiv. party Risk-Wgtd
Amount Factor Amount Risk Weight Exposure
$(000's) $(000's) $(000's)
(2) Off-Balance Sheet Exposure - 30 June 2010 (unaudited)
Other commitments to provide financial services with original maturity
of 1 year or more 265,533 50% 132,767 100.0% 132,767
Other commitments with an original maturity of less than 1 year or which
can be unconditionally cancelled at any time 565,470 0% - 0.0% -
Market related contracts
Foreign Exchange 1,164,940 n/a 7,906 20.0% 1,581
Interest rate 919,100 n/a 25,891 20.0% 5,178
Total Risk-Weighted Exposures 2,766,939 751,579
Banking Group
Banking Group
10
CITIBANK, N.A. NEW ZEALAND BRANCH AND ASSOCIATED BANKING GROUP
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
FOR THE SIX MONTHS ENDED 30 JUNE 2011
Principal Risk Risk-Wgtd
Amount Weight Exposure
$(000's) $(000's)
(1) Balance Sheet Exposure - 31 December 2010 (audited)
Cash and Short Term Claims on Government 999,993 0% -
Long Term Claims on Government 51,510 10% 5,151
Claims on Banks 1,226,765 20% 245,353
Other 382,223 100% 382,223
Total Assets 2,660,491 632,727
Credit Credit Counter-
Principal Conver. Equiv. party Risk-Wgtd
Amount Factor Amount Risk Weight Exposure
$(000's) $(000's) $(000's)
(2) Off-Balance Sheet Exposure - 31 December 2010 (audited)
Other commitments to provide financial services with original maturity
of 1 year or more 142,954 50% 71,477 99.9% 71,436
Other commitments with an original maturity of less than 1 year or which
can be unconditionally cancelled at any time 483,156 0% - 0.0% -
Market related contracts
Foreign Exchange 668,525 n/a 4,983 20.0% 997
Interest rate 878,100 n/a 24,093 20.0% 4,819
Total Risk-Weighted Exposures 2,761,044 709,979
9. CONCENTRATIONS OF CREDIT EXPOSURE
30-Jun-11 30-Jun-10 31-Dec-10
$(000's) $(000's) $(000's)
Industry Sectors unaudited unaudited audited
Financial 1,973,525 2,423,454 2,307,418
Government 184,259 - 51,555
Mining 33,748 93,913 58,339
Other Manufacturing 52,969 61,347 70,377
Real Estate 72,067 87,989 74,214
Transport 111,569 - 115,006
Wholesale Trade 126,431 82,465 69,690
Other 11,604 13,070 10,936
2,566,172 2,762,238 2,757,535
Other Assets 4,965 4,701 3,509
2,571,137 2,766,939 2,761,044
ANZSIC codes have been used as the basis for disclosing industry sectors.
The concentration of credit exposure includes both on and off balance sheet items.
30-Jun-11 30-Jun-10 31-Dec-10
10. CONCENTRATIONS OF FUNDING $(000's) $(000's) $(000's)
(a) Counterparty Type unaudited unaudited audited
Finance 1,546,501 1,619,493 1,750,954
Insurance 25,683 39,706 13,229
Food Manufacturing 42,022 30,237 123,439
Other Manufacturing 235,792 365,542 232,176
Property and Business Services 108,745 126,546 132,961
Transport 26,762 42,587 30,463
Wholesale Trade 200,650 178,401 162,442
Other 83,050 76,420 82,442
2,269,205 2,478,932 2,528,106
Income Tax Liabilities, Provisions and Other Liabilities 8,596 9,171 7,202
2,277,801 2,488,103 2,535,308
ANZSIC codes have been used as the basis for disclosing industry sectors.
(b) Geographical Areas
Exposures within New Zealand 767,257 841,018 878,143
Exposures to other countries (in NZD) -
Australia 151,418 110,453 137,880
Great Britain 192,449 32,709 327,908
Hong Kong 12,471 4,753 25,019
Luxembourg 187,501 160,403 224,840
Singapore 95,617 12,181 53,129
United States 715,869 1,146,768 729,839
Other 146,623 170,647 151,348
2,269,205 2,478,932 2,528,106
Income Tax Liabilities, Provisions and Other Liabilities 8,596 9,171 7,202
2,277,801 2,488,103 2,535,308
Banking Group
Banking Group
Banking Group
11
CITIBANK, N.A. NEW ZEALAND BRANCH AND ASSOCIATED BANKING GROUP
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
FOR THE SIX MONTHS ENDED 30 JUNE 2011
11. CREDIT EXPOSURES TO INDIVIDUAL COUNTERPARTIES
12. INTEREST RATE RISK REPRICING SCHEDULE
The effective interest rates and contractual repricing or maturity periods of financial instruments are as follows:
Effective More than Non Interest
Interest 0-3 mths 3-6 mths 6-12 mths 1-2 years 2 years Bearing Total
Rates $(000's) $(000's) $(000's) $(000's) $(000's) $(000's) $(000's)
Banking Group - as at 30 June 2011 (unaudited)
2.50% 992,843 - - - - - 992,843
Advances to Financial Institutions at call 2.62% 200,321 - - - - - 200,321
Due from Related Parties 2.40% 65,378 - - - - - 65,378
2.91% 547,849 51,010 - - 51,629 - 650,488
Available for Sale Securities 3.48% - - - 107,066 - - 107,066
Loans and Advances 4.26% 306,041 82,916 1,511 261 2,657 500 393,886
2,112,432 133,926 1,511 107,327 54,286 500 2,409,982
Deposits from Other Banks 0.64% 21,594 - - - - - 21,594
Due to Related Parties 2.38% 1,034,149 - - - - - 1,034,149
Other Deposits 1.71% 1,175,520 - - - - 1,175,520
2,231,263 - - - - - 2,231,263
Foreign Exchange Contracts 671,496 - - - - - 671,496
Interest Rate Swaps 50,000 - - - (50,000) - -
OFF BALANCE SHEET 721,496 - - - (50,000) - 671,496
Banking Group - as at 30 June 2010 (unaudited)
2.75% 666,087 - - - - - 666,087
Advances to Financial Institutions at call 11.56% 201 - - - - - 201
Due from Related Parties 3.00% 817,411 1,325 - - - - 818,736
2.99% 777,037 - - - 50,507 - 827,544
Loans and Advances 3.25% 195,413 76,062 534 4,137 4,722 - 280,868
2,456,149 77,387 534 4,137 55,229 - 2,593,436
Deposits from Other Banks 0.26% 23,061 - - - - - 23,061
Due to Related Parties 2.80% 1,227,001 - - - - - 1,227,001
Other Deposits 1.47% 1,185,357 11,505 - - - - 1,196,862
2,435,419 11,505 - - - - 2,446,924
Foreign Exchange Contracts 1,170,517 - - - - - 1,170,517
Interest Rate Swaps 28,900 (150,000) 200,000 68,100 (147,000) - -
OFF BALANCE SHEET 1,199,417 (150,000) 200,000 68,100 (147,000) - 1,170,517
Banking Group - as at 31 December 2010 (audited)
3.00% 999,993 - - - - - 999,993
Advances to Financial Institutions at call 2.85% 200,882 - - - - - 200,882
Due from Related Parties 3.11% 77,037 - - - - - 77,037
3.27% 897,909 51,510 - - 50,937 - 1,000,356
Loans and Advances 4.13% 296,234 73,224 1,264 2,165 4,120 183 377,190
2,472,055 124,734 1,264 2,165 55,057 183 2,655,458
Deposits from Other Banks 0.28% 26,115 - - - - - 26,115
Due to Related Parties 2.76% 1,172,699 - - - - - 1,172,699
Other Deposits 1.92% 1,278,928 2,000 - - - - 1,280,928
2,477,742 2,000 - - - - 2,479,742
Foreign Exchange Contracts 671,801 - - - - - 671,801
Interest Rate Swaps (100) - 50,000 100 (50,000) - -
OFF BALANCE SHEET 671,701 - 50,000 100 (50,000) - 671,801
Financial Assets at Fair Value through the
profit and loss
Cash and Demand Deposits with Central
Banks
Financial Assets at Fair Value through the
profit and loss
Cash and Demand Deposits with Central
Banks
Financial Assets at Fair Value through
profit and loss
Based on actual credit exposures, no credit exposure to any individual counterparty of Citibank, N.A. New Zealand Branch and Associated Banking Group equaled or
exceeded 10% of Citibank, N.A.'s equity during this accounting period.
Cash and Demand Deposits with Central
Banks
12
CITIBANK, N.A. NEW ZEALAND BRANCH AND ASSOCIATED BANKING GROUP
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
FOR THE SIX MONTHS ENDED 30 JUNE 2011
13. LIQUIDITY RISK - MATURITY PROFILE Gross
nominal
The contractual maturity periods of financial instruments are as follows: More than inflow/ Carrying
Call 0-12 mths 1-2 years 2-5 years 5 years (outflow) Amount
$(000's) $(000's) $(000's) $(000's) $(000's) $(000's) $(000's)
Banking Group - as at 30 June 2011 (unaudited)
Assets
Cash and Demand Deposits with Central Banks 992,843 - - - - 992,843 992,843
Advances to Financial Institutions at call 200,321 - - - - 200,321 200,321
Due from Related Parties 65,378 - - - - 65,378 65,378
- 598,859 - 51,629 - 650,488 650,488
Available for Sale Securities - - 107,066 - - 107,066 107,066
Loans and Advances 24,112 192,257 35,593 34,310 111,447 397,719 393,886
Other Financial Assets 233 1,567 - - - 1,800 1,800
1,282,887 792,683 142,659 85,939 111,447 2,415,615 2,411,782
Liabilities
Deposits from Other Banks 21,594 - - - - 21,594 21,594
Due to Related Parties 193,765 840,470 - - - 1,034,235 1,034,149
Other Deposits 1,037,720 138,239 - - - 1,175,959 1,175,520
Other Financial Liabilities 769 1,680 - - - 2,449 2,449
1,253,848 980,389 - - - 2,234,237 2,233,712
Foreign Exchange Contracts - 671,496 - - - 671,496 671,801
Interest Rate Swaps - 50,000 - (50,000) - - -
OFF BALANCE SHEET - 721,496 - (50,000) - 671,496 671,801
Banking Group - as at 30 June 2010 (unaudited)
Assets
Cash and Demand Deposits with Central Banks 666,087 - - - - 666,087 666,087
Advances to Financial Institutions at call 201 - - - - 201 201
Due from Related Parties 775,711 43,035 - - - 818,746 818,736
- 777,037 - 50,507 - 827,544 827,544
Loans and Advances 5,745 139,584 91,736 47,732 - 284,797 280,868
Other Financial Assets 1,142 1,096 - - - 2,238 2,238
1,448,886 960,752 91,736 98,239 - 2,599,613 2,595,674
Liabilities
Deposits from Other Banks 23,061 - - - - 23,061 23,061
Due to Related Parties 556,936 670,980 - - - 1,227,916 1,227,001
Other Deposits 836,483 361,098 - - - 1,197,581 1,196,862
Other Financial Liabilities 701 1,331 - - - 2,032 2,032
1,417,181 1,033,409 - - - 2,450,590 2,448,956
Foreign Exchange Contracts 500,000 670,517 - - - 1,170,517 671,801
Interest Rate Swaps (21,100) 100,000 68,100 (187,000) 40,000 - -
OFF BALANCE SHEET 478,900 770,517 68,100 (187,000) 40,000 1,170,517 671,801
Banking Group - as at 31 December 2010 (audited)
Assets
Cash and Demand Deposits with Central Banks 999,993 - - - - 999,993 999,993
Advances to Financial Institutions at call 200,882 - - - - 200,882 200,882
Due from Related Parties 54,537 22,514 - - - 77,051 77,037
- 949,419 - 50,937 - 1,000,356 1,000,356
Loans and Advances 19,955 179,271 55,086 8,753 114,865 377,930 377,190
Other Financial Assets 491 2,770 - - - 3,261 3,261
1,275,858 1,153,974 55,086 59,690 114,865 2,659,473 2,658,719
Liabilities
Deposits from Other Banks 26,115 - - - - 26,115 26,115
Due to Related Parties 263,151 909,784 - - - 1,172,935 1,172,699
Other Deposits 976,496 305,346 - - - 1,281,842 1,280,928
Other Financial Liabilities 1,024 4,292 - - - 5,316 5,316
1,266,786 1,219,422 - - - 2,486,208 2,485,058
Foreign Exchange Contracts - 671,801 - - - 671,801 671,801
Interest Rate Swaps (200,100) 250,000 100 (50,000) - - -
OFF BALANCE SHEET (200,100) 921,801 100 (50,000) - 671,801 671,801
Financial Assets at Fair Value through
profit or loss
Financial Assets at Fair Value through profit
or loss
Financial Assets at Fair Value through profit
or loss
13
CITIBANK, N.A. NEW ZEALAND BRANCH AND ASSOCIATED BANKING GROUP
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
FOR THE SIX MONTHS ENDED 30 JUNE 2011
The expected maturity periods of financial instruments are as follows: Call 0-12 mths 1-2 years > 2 years Total
$(000's) $(000's) $(000's) $(000's) $(000's)
Banking Group - as at 30 June 2011 (unaudited)
Assets
Cash and Demand Deposits with Central Banks 992,843 - - - 992,843
Advances to Financial Institutions at call - - - 200,321 200,321
Due from Related Parties 65,378 - - - 65,378
- - - 650,488 650,488
Loans and Advances - - - 393,886 393,886
Other Financial Assets 193 - - 1,607 1,800
1,058,414 - - 1,246,302 2,304,716
Liabilities
Deposits from Other Banks 3,239 - - 18,355 21,594
Due to Related Parties 193,765 840,384 - - 1,034,149
Other Deposits 332,493 - - 843,027 1,175,520
Other Financial Liabilities 514 174 - 1,761 2,449
530,011 840,558 - 863,143 2,233,712
Net Assets and Liabilities 528,403 (840,558) - 383,159 71,004
Banking Group - as at 30 June 2010 (unaudited)
Assets
Cash and Demand Deposits with Central Banks 666,087 - - - 666,087
Advances to Financial Institutions at call - - - 201 201
Due from Related Parties 775,711 43,025 - - 818,736
- - - 827,544 827,544
Loans and Advances - - - 280,868 280,868
Other Financial Assets 688 1,014 - 536 2,238
1,442,486 44,039 - 1,109,149 2,595,674
Liabilities
Deposits from Other Banks 4,612 - - 18,449 23,061
Due to Related Parties 556,936 670,065 - - 1,227,001
Other Deposits 365,500 - - 831,362 1,196,862
Other Financial Liabilities 427 657 - 948 2,032
927,475 670,722 - 850,759 2,448,956
Net Assets and Liabilities 515,011 (626,683) - 258,390 146,718
b) Corporate and other deposits. Non-volatile balances are reported in the >2 years and volatile balances in the overnight bucket. The methodology for calculating the
volatile and non-volatile balances is based on an analysis of 2.36 standard deviations of the previous twelve months balances and the resulting percentages are applied to
the balance sheet.
The expected maturity periods of financial instruments are based on the carrying value of the balance sheet.
Financial Assets at Fair Value through profit
or loss
Liquidity risk is managed on the basis of expected maturity dates for certain products (see below). The main assumption made is that the balance sheet does not mature
and is based on a business-as-usual view of the Banking Group's funding requirements.
All related party assets and liabilities are managed on a contractual maturity basis.
Financial Assets at Fair Value through profit
or loss
It is assumed that third party assets will roll over as management is not expecting any reduction in the balance sheet and are therefore shown in the > 2 years category. The
only exception is cash with central banks which is treated as contractual.
Third party liabilities are split in to two main categories -
a) Long-term debt which is managed on a contractual maturity basis
14
CITIBANK, N.A. NEW ZEALAND BRANCH AND ASSOCIATED BANKING GROUP
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
FOR THE SIX MONTHS ENDED 30 JUNE 2011
Call 0-12 mths 1-2 years > 2 years Total
Banking Group - as at 31 December 2010 (audited) $(000's) $(000's) $(000's) $(000's) $(000's)
Assets
Cash and Demand Deposits with Central Banks 999,993 - - - 999,993
Advances to Financial Institutions at call - - - 200,882 200,882
Due from Related Parties 54,537 22,500 - - 77,037
- - - 1,000,356 1,000,356
Loans and Advances - - - 377,190 377,190
Other Financial Assets 213 16 - 3,032 3,261
1,054,743 22,516 - 1,581,460 2,658,719
Liabilities
Deposits from Other Banks 5,223 - - 20,892 26,115
Due to Related Parties 263,151 909,548 - - 1,172,699
Other Deposits 433,702 - - 847,226 1,280,928
Other Financial Liabilities 582 116 - 4,618 5,316
702,658 909,664 - 872,736 2,485,058
Net Assets and Liabilities 352,085 (887,148) - 708,724 173,661
14. EXPOSURES TO MARKET RISK
$(000's) $(000's) $(000's)
Interest Rate Risk 3,413 273 -
Peak Interest Rate Risk 01/04/11-30/06/11 3,950 316 -
Foreign Currency Risk 315 25 -
Peak Foreign Currency Risk 01/04/11-30/06/11 2,425 194 -
Interest Rate Risk 8,231 658 -
Peak Interest Rate Risk 01/04/10-30/06/10 11,184 895 -
Foreign Currency Risk 864 69 -
Peak Foreign Currency Risk 01/04/10-30/06/10 1,022 82 -
Interest Rate Risk 650 52 -
Peak Interest Rate Risk 01/10/10-31/12/10 11,013 881 -
Foreign Currency Risk 1,425 114 -
Peak Foreign Currency Risk 01/10/10-31/12/10 3,000 240 -
Peak Exposure has been derived using the Overseas Banking Group's equity as at the end of the quarter.
Financial Assets at Fair Value through profit
or loss
Implied Risk
Weighted
Exposure
Notional
Capital
Charge
audited
Notional
Capital
Charge - % of
Citibank,
N.A.'s Equity
Banking Group
30-Jun-11
unaudited
Market risk notional capital charges are derived in accordance with the Capital Adequacy Framework (Standardised Approach) (BS2A) per the Registered Bank Disclosure
Statement (Off-Quarter - Overseas Incorporated Registered Banks) Order 2011.
The branch segregates its exposure to market risk between trading and non-trading portfolios. Trading portfolios cover risks arising from market making and proprietary
position taking, together with financial assets and liabilities that are managed on a fair value basis. Non-trading portfolios cover risks resulting from mainstream banking
30-Jun-10
unaudited
31-Dec-10
15
CITIBANK, N.A. NEW ZEALAND BRANCH AND ASSOCIATED BANKING GROUP
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
FOR THE SIX MONTHS ENDED 30 JUNE 2011
15. CAPITAL ADEQUACY
As at As at As at
CITIBANK, N.A. 30-Jun-11 30-Jun-10 31-Dec-10
unaudited unaudited audited
Tier 1 Capital as a percentage of risk weighted exposures 14.18% 14.16% 15.17%
Total Capital (Tier 1 and 2) as a percentage of risk weighted exposures 16.05% 16.04% 17.06%
Tier 1 Capital of Citibank, N.A. is not less than 4 percent of risk weighted exposures
Total Capital (Tier 1 and 2) of Citibank, N.A. is not less than 8 percent of risk weighted exposures
16. SUBSEQUENT EVENTS
There has not arisen in the interval between 30 June 2011 and the date of this report any other item, transaction or event of a material and unusual nature likely, in the
opinion of the directors of the Branch, to affect significantly the operations of the entity, the results of those operations, or the state of affairs of the entity in future
financial years.
Citibank, N.A. New Zealand Branch is a branch of, and each member of the Associated Banking Group is a wholly-owned subsidiary of, Citibank, N.A., which is an
indirect wholly-owned subsidiary of Citigroup Inc. The following sets forth the capital ratios of Citibank, N.A.
Citibank, N.A. is subject to risk-based capital and leverage guidelines issued by the U.S. regulator for national banks, the Office of the Comptroller of the Currency. The
Office of the Comptroller of the Currency is required by law to take specific prompt actions with respect to institutions that do not meet minimum capital standards.
Citibank, N.A. complies with the following minimum capital adequacy requirements at least equal to that specified under the Basel I approach, as administered by the
Office of the Comptroller of the Currency:
16