Citibank 2014 Annual Report Download - page 62

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Impact of Changes on Citigroup and Citibank, N.A. Capital
Ratios Under Current Regulatory Capital Standards
The following table presents the estimated sensitivity of Citigroup’s and
Citibank, N.A.’s capital ratios to changes of $100 million in Common Equity
Tier 1 Capital, Tier 1 Capital and Total Capital (numerator), and changes of
$1 billion in Advanced Approaches and Standardized Approach risk-weighted
assets as well as quarterly adjusted average total assets (denominator),
under current regulatory capital standards (reflecting Basel III Transition
Arrangements), as of December 31, 2014. This information is provided for
the purpose of analyzing the impact that a change in Citigroup’s or Citibank,
N.A.’s financial position or results of operations could have on these ratios.
These sensitivities only consider a single change to either a component
of capital, risk-weighted assets, or quarterly adjusted average total assets.
Accordingly, an event that affects more than one factor may have a larger
basis point impact than is reflected in this table.
Common Equity
Tier 1 Capital ratio Tier 1 Capital ratio Total Capital ratio Tier 1 Leverage ratio
Impact of
$100 million
change in
Common
Equity
Tier 1
Capital
Impact of
$1 billion
change in
risk-weighted
assets
Impact of
$100 million
change in
Tier 1
Capital
Impact of
$1 billion
change in
risk-weighted
assets
Impact of
$100 million
change in
Total
Capital
Impact of
$1 billion
change in
risk-weighted
assets
Impact of
$100 million
change
in Tier 1
Capital
Impact of
$1 billion
change in
quarterly
adjusted
average total
assets
Citigroup
Advanced Approaches 0.8 bps 1.0 bps 0.8 bps 1.0 bps 0.8 bps 1.1 bps 0.5 bps 0.5 bps
Standardized Approach (1) 0.9 bps 1.4 bps 0.9 bps 1.4 bps 0.9 bps 1.7 bps 0.5 bps 0.5 bps
Citibank, N.A.
Advanced Approaches 1.1 bps 1.4 bps 1.1 bps 1.4 bps 1.1 bps 1.6 bps 0.7 bps 0.7 bps
Standardized Approach (1) 1.1 bps 1.6 bps 1.1 bps 1.6 bps 1.1 bps 1.8 bps 0.7 bps 0.7 bps
(1) Basel III 2014 Standardized Approach which reflects the application of the Basel I credit risk and Basel II.5 market risk capital rules.
Citigroup Broker-Dealer Subsidiaries
At December 31, 2014, Citigroup Global Markets Inc., a U.S. broker-dealer
registered with the SEC that is an indirect wholly owned subsidiary of
Citigroup, had net capital, computed in accordance with the SEC’s net
capital rule, of $5.5 billion, which exceeded the minimum requirement
by $4.4 billion.
In addition, certain of Citi’s other broker-dealer subsidiaries are subject
to regulation in the countries in which they do business, including
requirements to maintain specified levels of net capital or its equivalent.
Citigroup’s other broker-dealer subsidiaries were in compliance with their
capital requirements at December 31, 2014.