Citigroup Announces Estimated Legal and Repositioning Expenses for Fourth Quarter 2014

Citi announced today that it expects to incur legal and related charges of approximately $2.7 billion and repositioning costs of approximately $800 million in the fourth quarter of 2014. With these items, Citi expects to be marginally profitable for the quarter.

The estimated $2.7 billion of legal and related charges result from continually evolving inquiries and investigations primarily relating to previously disclosed matters. These include foreign exchange investigations, LIBOR-related investigations and anti-money laundering and related compliance investigations.

The $800 million of repositioning costs are higher than anticipated as Citi identified additional opportunities to lower headcount and rationalize its real estate footprint.

Citi CEO Michael Corbat said, “We have made significant progress in simplifying and streamlining our company and these repositioning actions will further enhance our ability to serve our clients efficiently and focus on those areas with the greatest potential for returns. Also, we believe these legal charges should cover a significant portion of our outstanding legal matters based on current information.”

Citi’s estimated legal and related charges for the fourth quarter of 2014 are based on currently available information and could change based on further developments. Citi will announce its fourth quarter of 2014 results on January 15, 2015.

Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.

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Certain statements in this document, including Citi’s estimated legal and related charges and repositioning costs for the fourth quarter of 2014, its expected marginal profitability in the quarter and Citi’s expectation that the announced legal charges should cover a substantial portion of its outstanding legal matters are “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. These statements are not guarantees of future results or occurrences. Actual results and capital and other financial condition may differ materially from those included in these statements due to a variety of factors, including the precautionary statements included in this document, market, macroeconomic and other operational conditions during the remainder of the fourth quarter of 2014, the continued evolution and ultimate resolution of the legal matters referred to above and those contained in Citigroup’s filings with the U.S. Securities and Exchange Commission, including without limitation the “Risk Factors” section of Citigroup’s 2013 Annual Report on Form 10-K. Any forward-looking statements made by or on behalf of Citigroup speak only as to the date they are made, and Citi does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.