Citibank 2014 Annual Report Download - page 56

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Citigroup’s Capital Resources Under Current
Regulatory Standards
During 2014, Citi was required to maintain stated minimum Common
Equity Tier 1 Capital, Tier 1 Capital and Total Capital ratios of 4%, 5.5%
and 8%, respectively. Furthermore, to be “well capitalized” under current
federal bank regulatory agency definitions, a bank holding company must
have a Tier 1 Capital ratio of at least 6%, a Total Capital ratio of at least 10%,
and not be subject to a Federal Reserve Board directive to maintain higher
capital levels.
The following table sets forth the capital tiers, risk-weighted assets,
quarterly adjusted average total assets and capital ratios under current
regulatory standards (reflecting Basel III Transition Arrangements) for Citi as
of December 31, 2014 and December 31, 2013.
Citigroup Capital Components and Ratios Under Current Regulatory Standards (Basel III Transition Arrangements)
December 31, 2014 December 31, 2013 (1)
In millions of dollars, except ratios
Advanced
Approaches
Standardized
Approach (2)
Advanced
Approaches
Standardized
Approach (2)
Common Equity Tier 1 Capital $ 166,984 $ 166,984 $ 157,473 $ 157,473
Tier 1 Capital 166,984 166,984 157,473 157,473
Total Capital (Tier 1 Capital + Tier 2 Capital) (3) 185,280 196,379 176,748 187,374
Risk-Weighted Assets 1,275,012 1,080,716 1,177,736 1,103,045
Quarterly Adjusted Average Total Assets (4) 1,849,297 1,849,297 1,830,896 1,830,896
Common Equity Tier 1 Capital ratio (5) 13.10 % 15.45% 13.37% 14.28%
Tier 1 Capital ratio (5) 13.10 15.45 13.37 14.28
Total Capital ratio (5) 14.53 18.17 15.01 16.99
Tier 1 Leverage ratio 9.03 9.03 8.60 8.60
(1) Pro forma presentation based on application of the Final Basel III Rules consistent with current period presentation.
(2) Basel III 2014 Standardized Approach which reflects the application of the Basel I credit risk and Basel II.5 market risk capital rules.
(3) Under the Advanced Approaches framework eligible credit reserves that exceed expected credit losses are eligible for inclusion in Tier 2 Capital to the extent the excess reserves do not exceed 0.6% of credit risk-
weighted assets, which differs from the Standardized Approach in which the allowance for credit losses is includable in Tier 2 Capital up to 1.25% of credit risk-weighted assets, with any excess allowance for credit
losses being deducted in arriving at credit risk-weighted assets.
(4) Tier 1 Leverage ratio denominator.
(5) As of December 31, 2014 and December 31, 2013, Citi’s reportable Common Equity Tier 1 Capital, Tier 1 Capital, and Total Capital ratios were the lower derived under the Basel III Advanced Approaches framework.
As indicated in the table above, Citigroup’s capital ratios at December 31,
2014 were in excess of the stated minimum requirements under the Final
Basel III Rules. In addition, Citi was also “well capitalized” under current
federal bank regulatory agency definitions as of December 31, 2014 and
December 31, 2013.