Citibank 2015 Annual Report Download - page 61

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Impact of Changes on Citigroup and Citibank Capital Ratios
Under Current Regulatory Capital Standards
The following tables present the estimated sensitivity of Citigroup’s and
Citibank’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, quarterly adjusted average total assets, as well as Total Leverage
Exposure (denominator), under current regulatory capital standards
(reflecting Basel III Transition Arrangements), as of December 31, 2015.
This information is provided for the purpose of analyzing the impact that a
change in Citigroup’s or Citibank’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, quarterly adjusted
average total assets, or Total Leverage Exposure. Accordingly, an event that
affects more than one factor may have a larger basis point impact than is
reflected in these tables.
Impact of Changes on Citigroup and Citibank Risk-Based Capital Ratios (Basel III Transition Arrangements)
Common Equity
Tier 1 Capital ratio Tier 1 Capital ratio Total Capital ratio
In basis points
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
Citigroup
Advanced Approaches 0.8 1.2 0.8 1.2 0.8 1.4
Standardized Approach 0.9 1.3 0.9 1.4 0.9 1.6
Citibank
Advanced Approaches 1.1 1.6 1.1 1.6 1.1 1.7
Standardized Approach 1.0 1.3 1.0 1.3 1.0 1.5
Impact of Changes on Citigroup and Citibank Leverage Ratios (Basel III Transition Arrangements)
Tier 1 Leverage ratio Supplementary Leverage ratio
In basis points
Impact of
$100 million
change in
Tier 1
Capital
Impact of
$1 billion
change in
quarterly
adjusted
average total
assets
Impact of
$100 million
change in
Tier 1
Capital
Impact of
$1 billion
change in
Total Leverage
Exposure
Citigroup 0.6 0.6 0.4 0.3
Citibank 0.8 0.8 0.5 0.4
Citigroup Broker-Dealer Subsidiaries
At December 31, 2015, 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 approximately $7.5 billion, which exceeded the minimum
requirement by approximately $6.1 billion.
Moreover, Citigroup Global Markets Limited, a broker-dealer registered
with the United Kingdom’s Prudential Regulation Authority (PRA) that is
also an indirect wholly owned subsidiary of Citigroup, had total capital of
$17.4 billion at December 31, 2015, which exceeded the PRA’s minimum
regulatory capital requirements.
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, 2015.