Citibank 2012 Annual Report Download - page 42

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LATIN AMERICA REGIONAL CONSUMER BANKING
Latin America Regional Consumer Banking (Latin America 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. Latin America RCB includes branch networks throughout Latin America as well
as Banco Nacional de Mexico, or Banamex, Mexico’s second-largest bank, with over 1,700 branches. As announced in the fourth quarter of 2012, as part of its
repositioning efforts, Citi expects to either sell or significantly scale back consumer operations in Paraguay and Uruguay, and expects to further optimize its
branch network in Brazil. At December 31, 2012, Latin America RCB had 2,181 retail branches, with approximately 31.8 million customer accounts, $28.3
billion in retail banking loans and $48.6 billion in deposits. In addition, the business had approximately 12.9 million Citi-branded card accounts with $14.8
billion in outstanding loan balances.
In millions of dollars, except as otherwise noted 2012 2011 2010
% Change
2012 vs. 2011
% Change
2011 vs. 2010
Net interest revenue $6,695 $ 6,456 $ 5,953 4% 8%
Non-interest revenue 3,007 3,013 2,714 —11
Total revenues, net of interest expense $ 9,702 $ 9,469 $ 8,667 2% 9%
Total operating expenses $5,702 $ 5,756 $ 5,139 (1)% 12%
Net credit losses $1,750 $ 1,684 $ 1,868 4% (10)%
Credit reserve build (release) 299 (67) (823) NM 92
Provision for benefits and claims 167 130 127 28 2
Provisions for loan losses and for benefits and claims (LLR & PBC) $2,216 $ 1,747 $ 1,172 27% 49%
Income from continuing operations before taxes $1,784 $ 1,966 $ 2,356 (9)% (17)%
Income taxes 274 388 568 (29) (32)
Income from continuing operations $1,510 $ 1,578 $ 1,788 (4)% (12)%
Noncontrolling interests (2) — (8) —100
Net income $1,512 $ 1,578 $ 1,796 (4)% (12)%
Balance Sheet data (in billions of dollars)
Average assets $ 80 $ 80 $ 72 —% 11%
Return on average assets 1.89% 1.97% 2.50%
Efficiency ratio 59% 61% 59%
Average deposits $ 45.0 $ 45.8 $ 40.3 (2) 14
Net credit losses as a percentage of average loans 4.34% 4.69% 6.14%
Revenue by business
Retail banking $5,766 $ 5,468 $ 5,016 5% 9%
Citi-branded cards 3,936 4,001 3,651 (2) 10
Total $ 9,702 $ 9,469 $ 8,667 2% 9%
Income from continuing operations by business
Retail banking $ 861 $ 902 $ 927 (5)% (3)%
Citi-branded cards 649 676 861 (4) (21)
Total $ 1,510 $ 1,578 $ 1,788 (4)% (12)%
Foreign Currency (FX) Translation Impact
Total revenue—as reported $9,702 $ 9,469 $ 8,667 2% 9%
Impact of FX translation (1) —(569) (335)
Total revenues—ex-FX $9,702 $ 8,900 $ 8,332 9% 7%
Total operating expenses—as reported $5,702 $ 5,756 $ 5,139 (1)% 12%
Impact of FX translation (1) —(367) (233)
Total operating expenses—ex-FX $5,702 $ 5,389 $ 4,906 6% 10%
Provisions for LLR & PBC—as reported $2,216 $ 1,747 $ 1,172 27% 49%
Impact of FX translation (1) —(156) (57)
Provisions for LLR & PBC—ex-FX $2,216 $ 1,591 $ 1,115 39% 43%
Net income—as reported $ 1,512 $ 1,578 $ 1,796 (4)% (12)%
Impact of FX translation (1) —(66) (39)
Net income—ex-FX $1,512 $ 1,512 $ 1,757 —% (14)%
(1) Reflects the impact of foreign exchange (FX) translation into U.S. dollars at the current exchange rate for all periods presented.
NM Not meaningful