The following information was extracted from Citigroup Inc

s 2009 annual
The following information was extracted from Citigroup Inc s 2009 annual

The following information was extracted from Citigroup, Inc.'s 2009 annual report.
From letter to shareholders:
Financial Strength
While Citi started the year as a TARP institution receiving "exceptional financial assistance," by
the end of the year our capital and liquidity positions were among the strongest in the banking
world. We repaid TARP and exited the loss-sharing agreement with the U.S. government. Tier 1
Common rose by nearly $82 billion to more than $104 billion, with a ratio of 9.6%, and we had a
Tier 1 Capital Ratio39 of 11.7%-one of the highest in the industry. Structural liquidity, at 73%,
was in excellent shape. The allowance for loan loss reserves stood at $36 billion or 6.1% of
loans. Worldwide, deposits grew by 8% to $836 billion. The other essential component of Citi's
revived financial strength has been a large reduction in our risk exposure. By year end, we had
reduced assets on our balance sheet by half a trillion dollars, or 21%, from peak levels in the
third quarter of 2007. This includes a substantial decline in our riskiest assets over those years.
The actions we took restored Citi's financial strength and therefore were essential. I deeply
regret that they also resulted in significant dilution for our shareholders. Citi remains committed
to preserving our considerable financial strength and remaining one of the strongest banks in
the world.
From management's discussion and analysis:
Allowance for Loan Losses
Allowance for loan losses represents management's best estimate of probable losses inherent
in the portfolio, as well as probable losses related to large individually evaluated impaired loans
and troubled debt restructurings.
Citigroup increased its allowance for loan losses.
During 2009, Citi added a net build of $8.0 billion to its allowance for loan losses. The allowance
for loan losses was $36 billion at December 31, 2009, or 6.1% of loans, compared to $29.6
billion, or 4.3% of loans, at year-end 2008. With the adoption of SFAS 166 and 167 in the first
quarter of 2010, loan loss reserves would have been $49.4 billion, or 6.6% of loans, each as of
December 31, 2009, and based on current estimates.
Selected details of Citigroup's credit loss experience follow:

In June 2009, the FASB issued SFAS No. 166, "Accounting for Transfers of Financial Assets,
an amendment of FASB Statement No. 140," that will eliminate qualifying special purpose
entities (QSPEs). This change will have a significant impact on Citigroup's Consolidated
Financial Statements. Beginning January 1, 2010, the Company will lose sales treatment for
certain future asset transfers that would have been considered sales under SFAS 140, and for
certain transfers of portions of assets that do not meet the definition of participating interests.
Simultaneously, the FASB issued SFAS No. 167, "Amendments to FASB Interpretation No.
46(R)," which details three key changes to the consolidation model. First, former QSPEs will
now be included in the scope of SFAS 167. In addition, the FASB has changed the method of

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