Citibank 2011 Annual Report Download - page 115

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Citi’s Corporate credit portfolio is also diversified by industry, with a
concentration in the financial sector, broadly defined, including banks,
other financial institutions, insurance companies, investment banks and
government and central banks. The following table shows the allocation of
direct outstandings and unfunded commitments to industries as a percentage
of the total Corporate portfolio:
Direct outstandings and
unfunded commitments
December 31,
2011
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
0UBLICæSECTOR 19% 
0ETROLEUMæENERGYæCHEMICALæANDæMETAL 17 
4RANSPORTATIONæANDæINDUSTRIAL 16 
"ANKSBROKERDEALERS 13 
#ONSUMERæRETAILæANDæHEALTH 13 
4ECHNOLOGYæMEDIAæANDæTELECOM 8
)NSURANCEæANDæSPECIALæPURPOSEæVEHICLES 5
(EDGEæFUNDS 4
2EALæESTATE 3
/THERæINDUSTRIESæ 2
Total 100% 
æ )NCLUDESæALLæOTHERæINDUSTRIESæNONEæOFæWHICHæEXCEEDSææOFæTOTALæOUTSTANDINGS
Credit Risk Mitigation
As part of its overall risk management activities, Citigroup uses credit
derivatives and other risk mitigants to hedge portions of the credit risk in its
Corporate credit portfolio, in addition to outright asset sales. The purpose
of these transactions is to transfer credit risk to third parties. The results of
the mark to market and any realized gains or losses on credit derivatives are
reflected in the Principal transactions line on the Consolidated Statement
of Income.
At December 31, 2011 and December 31, 2010, $41.5 billion and
$49.0 billion, respectively, of credit risk exposures were economically
hedged. Citigroup’s expected loss model used in the calculation of its loan
loss reserve does not include the favorable impact of credit derivatives
and other mitigants that are marked to market. In addition, the reported
amounts of direct outstandings and unfunded commitments above do
not reflect the impact of these hedging transactions. At December 31,
2011 and December 31, 2010, the credit protection was economically
hedging underlying credit exposure with the following risk rating
distribution, respectively:
Rating of Hedged Exposure
December 31,
2011
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!!!!!! 41% 
""" 45 
""" 13 
###æORæBELOW 1
Total 100% 
At December 31, 2011 and December 31, 2010, the credit protection
was economically hedging underlying credit exposures with the following
industry distribution:
Industry of Hedged Exposure
December 31,
2011
$ECEMBERææ

0ETROLEUMæENERGYæCHEMICALæANDæMETALæ 22% 
4RANSPORTATIONæANDæINDUSTRIAL 22 
#ONSUMERæRETAILæANDæHEALTH 15 
0UBLICæSECTOR 12 
4ECHNOLOGYæMEDIAæANDæTELECOM 12 
"ANKSBROKERDEALERS 10 
)NSURANCEæANDæSPECIALæPURPOSEæVEHICLES 5
/THERæINDUSTRIESæ 2
Total 100% 
æ )NCLUDESæALLæOTHERæINDUSTRIESæNONEæOFæWHICHæISæGREATERæTHANææOFæTHEæTOTALæHEDGEDæAMOUNT