Fixed income markets revenues of negative 13

The net credit loss ratio increased 108 basis points to 4.04. Lowerrevenues and a significant rise in credit costs led to a net loss of $76million.Asia Excluding Japan Consumer Finance, revenues declined 20, mainly driven by asignificant decline in investment revenues, as investment sales declined 83,reflecting a continued decline in equity markets across Asia. The declines inaverage loans and deposits of 12 and 9, respectively, were mainly due to theimpact of foreign exchange. Credit costs more than doubled, driven by higher netcredit losses, up 57 or $59 million, and a $71 million incremental net loanloss reserve build.

Higher credit costs were mainly driven by continueddeterioration in the credit environment in India The net credit loss ratioincreased 66 basis points to 1.48 Net income declined 35 to $251 million. In Japan Consumer Finance, revenues declined 47, reflecting a decline in netinterest revenues as the portfolio continues to be managed down. Revenues alsoincluded a $174 million pre-tax charge to increase reserves for estimated lossesdue to customer settlements. This compares to a $188 million pre-tax chargerecorded in the prior-year period. Net income of $545 million reflected a taxbenefit of $750 million, mainly due to the restructuring of legal vehicles.INSTITUTIONAL CLIENTS GROUP Fourth Quarter RevenuesFourth Quarter Net Income (In Millions of Dollars)2008 2007 2008 2007 Change Change North America $(11,331)$(11,889)5$(8,784 )$(8,785 )Europe, Middle East and Africa988(3,762)NM(240)(3,543)93Latin America 561812(31)129334(61) Asia(808)1,749NM(1,283)604NMSecurities and Banking$(10,590)$(13,090)19 $(10,178)$(11,390)11 North America $591 $468 26 $71$5042 Europe, Middle East and Africa8187795 26517155Latin America 336341(1 )108132(18)Asia654711(8 )277314(12)Transaction Services$2,399 $2,299 4$721 $667 8Institutional Clients Group $(8,191 )$(10,791)24 $(9,457 )$(10,723)12 NM Not Meaningful. Securities and Banking Securities and banking revenues were negative $10.6 billion due to substantialwrite-downs and losses. Fixed income markets revenues of negative $13.4 billion reflected: A $5.3 billion downward credit value adjustment on derivative positions,excluding monolines.

The continued disruption in the credit markets causedcounterparty credit spreads to widen, while the TARP capital injectioncontributed to the tightening of Citis credit spreads This unusual divergenceled to the downward adjustment. Theseexposures on December 31, 2008, were comprised of approximately $2.0 billion ofgross lending and structuring exposures and approximately $12.0 billion of netABS CDO super senior exposures (ABS CDO super senior gross exposures of $ 18.9billion). On September 30, 2008, these exposures were comprised of approximately$3.3 billion of gross lending and structuring exposures and approximately $16.3billion of net ABS CDO super senior exposures (ABS CDO super senior grossexposures of $25.7 billion) See details in Schedule E. Private equity and equity investments losses of $2.5 billion.

Write-downs of $1.3 billion, net of hedges, on Alt-A mortgages Write-downs of $1.1 billion on SIV assets. Write-downs of $991 million on commercial real estate positions. Downward credit value adjustments of $897 million related to exposure tomonoline insurers. Write-downs of $307 million on ARS proprietary positions and $87 million onpositions related to the August 7, 2008 settlement. Negative revenues were partially offset by a $2.0 billion gain related to theinclusion of Citi's credit spreads in the determination of the market value ofthose liabilities for which the fair value option was elected, as well as strongrevenues in the interest rate and currency trading business. Equity markets revenues decreased by $1.4 billion to negative $650 million.Revenues generated in cash trading and prime broker were offset by losses inderivatives, convertibles, and proprietary trading.