Net Income of $3.9 Billion; $4.1 Billion Excluding CVA/DVA and Tax Item Revenues of $20.1 Billion

Net Interest Margin Increased to 2.90%

Net Credit Losses of $2.4 Billion Declined 15% Versus Prior Year Period

Loan Loss Reserve Release of $673 Million Versus $650 Million in Prior Year

Reduced Deferred Tax Assets by Approximately $1.1 Billion

Estimated Basel III Tier 1 Common Ratio of 10.4% 3
Estimated Basel III Supplementary Leverage Ratio of 5.6% 4

Book Value per Share Increased to $66.25
Tangible Book Value per Share 5 Increased to $56.40

Citigroup Deposits of $966 Billion Grew 3% Versus Prior Year Period

Citicorp Loans of $575 Billion Grew 7% Versus Prior Year Period

Citi Holdings Assets of $114 Billion Declined 23% from Prior Year Period and Represented 6% of Total Citigroup Assets at Quarter End
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New York - Citigroup Inc. today reported net income for the first quarter 2014 of $3.9 billion, or $1.23 per diluted share, on revenues of $20.1 billion. This compared to net income of $3.8 billion, or $1.23 per diluted share, on revenues of $20.2 billion for the first quarter 2013.

CVA/DVA was $7 million ($4 million after-tax) in the first quarter, compared to negative $319 million (negative $198 million after-tax) in the prior year period. First quarter 2014 results included a $210 million tax charge (recorded inCorporate/Other) related to corporate tax reforms enacted in two states. These reforms lowered marginal tax rates, resulting in a reduction in Citigroup's state deferred tax assets. Excluding CVA/DVA, first quarter revenues of $20.1 billion were down 2% from the prior year period. Excluding CVA/DVA and the tax item, first quarter 2014 earnings were $1.30 per diluted share, representing a 1% increase from prior year earnings of $1.29 per diluted share.

Michael Corbat, Chief Executive Officer of Citi, said, "Despite a quarter that was difficult for our company, we delivered strong results. Both our consumer and institutional businesses performed well and we grew both loans and deposits while holding the line on our expenses. We reduced our deferred tax assets more than any other quarter since the crisis and drove Citi Holdings closer to break even.

"$4 billion in net income helped generate $6 billion in regulatory capital during the quarter and increased our estimated Tier 1 Common ratio to 10.4% on a Basel III basis. Very cognizant of our shareholders desire to see a sustainable return of capital, we are engaged with the Fed to better understand their expectations regarding the CCAR process. We are committed to bringing our capital planning process to the highest possible standards, befitting an institution of our global reach. I will dedicate whatever resources and make whatever changes necessary to achieve this critical goal," Mr. Corbat concluded.

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Citigroup
Citigroup revenuesof $20.1 billion in the first quarter 2014 declined 1% from the prior year period. Excluding CVA/DVA in both periods, revenues declined 2% from the prior year period. This decrease was driven by a 5% decline in Citicorp revenues, primarily due to a decline inFixed Income Marketsrevenues inInstitutional Clients Group (ICG)and lower U.S. mortgage refinancing activity inNorth America Global Consumer Banking (GCB), which was partially offset by higher Citi Holdings revenues.

Citigroup's net incomerose to $3.9 billion in the first quarter 2014 from $3.8 billion in the prior year period. Excluding the impact of CVA/DVA in both periods and the tax item in the first quarter 2014, Citigroup net income increased 4% versus the prior year period driven by lower expenses and lower net credit losses, partially offset by the lower revenues and a higher effective tax rate. Operating expenses of $12.1 billion were 1% lower than the prior year period, driven by efficiency savings and the overall decline in Citi Holdings assets, partially offset by higher regulatory and compliance costs, legal and related expenses and repositioning charges in the current quarter. Operating expenses in the first quarter 2014 included $945 million of legal and related expenses, compared to $710 million in the prior year period, and $211 million of repositioning charges, compared to $148 million in the prior year period. Citigroup's cost of credit in the first quarter 2014 was $2.0 billion, a decrease of 20% from the prior year period, primarily reflecting a $439 million improvement in net credit losses. Excluding CVA/DVA in both periods and the tax item in the first quarter 2014, Citi's effective tax rate was 31% in the current quarter compared to a 29% rate in the prior year period.

Citigroup's allowance for loan losseswas $18.9 billion at quarter end, or 2.87% of total loans, compared to $23.7 billion, or 3.70% of total loans, at the end of the prior year period. The $673 million net release of loan loss reserves in the current quarter compared to a $650 million release in the prior year period. Citigroup asset quality continued to improve as total non-accrual assets fell to $9.0 billion, a 19% reduction compared to the first quarter 2013. Corporate non-accrual loans declined 35% to $1.6 billion, while consumer non-accrual loans declined 14% to $7.0 billion.

Citigroup's capital levels and book valueper share increased versus the prior year period. As of quarter end, book value per share was $66.25 and tangible book value per share was $56.40, 6% and 8% increases, respectively, versus the prior year period. At quarter end, Citigroup's estimated Basel III Tier 1 Common ratio was 10.4%, up from 9.3% in the prior year period, driven by growth in retained earnings and deferred tax asset (DTA) utilization, partially offset by an increase in risk-weighted assets. During the first quarter of 2014, Citigroup added approximately $56 billion of operational risk risk-weighted assets as part of its transition to Basel III "advanced approaches" effective in the second quarter 2014. Citigroup reduced its DTA by approximately $1.1 billion in the first quarter 2014. Citigroup's estimated Basel III Supplementary Leverage ratio for the first quarter 2014 was 5.6%.

Citicorp
Citicorp revenuesof $18.7 billion in the first quarter 2014 declined 3% from the prior year period. CVA/DVA, reported withinICG, was negative $7 million in the first quarter 2014, compared to negative $310 million in the prior year period. Excluding CVA/DVA, revenues were down 5% from the first quarter 2013, reflecting declines in bothGCBandICGrevenues of 5% and 7%, respectively.Corporate/Otherrevenues were $141 million versus $6 million in the prior year period.

Citicorp net incomedecreased 8% from the prior year period to $4.2 billion. CVA/DVA, reported withinICG, was negative $4 million (after-tax) in the first quarter 2014, compared to negative $192 million (after-tax) in the prior year period. Excluding CVA/DVA and the tax item in the first quarter 2014, net income declined 8% compared to the prior year period, as the lower revenues were partially offset by lower expenses and lower cost of credit.

Citicorp operating expensesdecreased 2% from the prior year period to $10.6 billion primarily reflecting efficiency savings, partially offset by higher regulatory and compliance costs, legal and related expenses and repositioning charges in the current quarter.

Citicorp cost of creditof $1.6 billion in the first quarter 2014 declined 4% from the prior year period. The decline reflected both a 1% decline in net credit losses as well as a higher net loan loss reserve release, which increased 10% versus the prior year period. Citicorp's consumer loans 90+ days delinquent declined 1% from the prior year period to $2.9 billion, and the 90+ days delinquency ratio decreased 4 basis points to 0.99% of loans.

Citicorp end of period loansgrew 7% versus the prior year period to $575 billion, with 12% growth in corporate loans to $279 billion and 2% growth in consumer loans to $296 billion. The growth in consumer loans reflected the acquisition of Best Buy's U.S. credit card portfolio in the third quarter 2013.

Global Consumer Banking
GCBrevenuesof $9.3 billion declined 5% from the prior year period, as significantly lower U.S. mortgage refinancing activity and continued spread compression globally more than offset the impact of the Best Buy portfolio acquisition and ongoing volume growth in most international businesses.

GCBnet incomedeclined 6% versus the prior year period to $1.7 billion, reflecting the decline in revenues, partially offset by lower expenses, lower cost of credit and a lower effective tax rate. Operating expenses declined 3% versus the prior year period, reflecting ongoing efficiency savings, partially offset by volume-related growth and the impact of the Best Buy acquisition.

North AmericaGCBrevenuesdeclined 6% to $4.8 billion versus the prior year period driven mainly by lower retail banking revenues, partially offset by higher retail services revenues. Retail banking revenues declined 28% to $1.1 billion from the first quarter 2013, primarily reflecting the lower U.S. mortgage refinancing activity as well as ongoing spread compression, partially offset by 4% growth in average deposits and 4% growth in average loans. Citi-branded cards revenues were roughly flat versus the prior year period at $2.0 billion, reflecting improvement in net interest spreads and growth in purchase sales, offset by a 3% decline in average loans. Citi retail services revenues increased 8% to $1.6 billion, reflecting the impact of the Best Buy portfolio acquisition.

North AmericaGCBnet incomewas $1.0 billion, 5% lower than the first quarter 2013, driven by the decline in revenues and a reduction in loan loss reserve releases, partially offset by lower operating expenses, a decline in net credit losses and a lower effective tax rate. Operating expenses declined by 3% versus the prior year period to $2.4 billion, reflecting ongoing cost reduction initiatives and the repositioning of the mortgage business resulting from the decline in refinancing activity, partially offset by the impact of the Best Buy portfolio acquisition.

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