Citi closed the four remaining signed consumer banking sale transactions in 2023. Citi also continued to make progress with the wind-downs of the Korea and China consumer banking businesses and the Russia consumer, local commercial and institutional businesses, as well as the planned initial public offering of Citi's consumer banking and small business and middle-market banking operations in Mexico, and restarted the sales process for its Poland consumer banking business.

Citi expects to incur additional costs related to its organizational simplification in the first quarter of 2024. These costs are part of Citi's ongoing efforts to streamline its operations.

Citi expects to incur higher net credit losses in 2024, primarily due to higher cards net credit loss rates, which Citi expects to rise above pre-pandemic levels and, on a full-year basis, peak in 2024. This higher net credit losses expectation is already reflected in the Company's ACL on loans for outstanding balances at December 31, 2023.

Citi demonstrated substantial progress across the franchise during 2023, despite the impact of several notable items in the fourth quarter. This progress included revenue growth and divestiture completions.

Citi expects to incur additional costs related to its organizational simplification in the first quarter of 2024. Citi's CEO has made the strengthening of Citi's risk and control environment a strategic priority and has established a Chief Operating Officer organization to centralize program management.

Citi continues to work constructively with the regulators and provides to both regulators on an ongoing basis additional information regarding its plans and progress. Citi will continue to reflect their feedback in its project plans and execution efforts.

Various geopolitical, macroeconomic and regulatory challenges and uncertainties continue to adversely affect economic conditions in the U.S. and globally, including, among others, continued elevated interest rates, elevated inflation, and economic and geopolitical challenges related to China, the Russia-Ukraine war and escalating conflicts in the Middle East.

Citi's results are exposed to risks in Russia and Argentina, including increases in transfer risk associated with exposures in Russia and Argentina, driven by safety and soundness considerations under U.S. banking law. Citi also incurred approximately $1.9 billion in aggregate reserve builds related to increases in transfer risk associated with exposures in Russia and Argentina.

Citi's computer systems, software and networks are subject to ongoing attempted cyberattacks, such as unauthorized access, loss or destruction of data, account takeovers, disruptions of service, phishing, malware, ransomware, computer viruses or other malicious code and other similar events. These threats can arise from external parties, as well as insiders who knowingly or unknowingly engage in or enable malicious cyber activities.

Citigroup is a global diversified financial services holding company whose businesses provide consumers, corporations, governments and institutions with a broad, yet focused, range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, trade and securities services and wealth management.

Citi's vision is to be the preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in the U.S.

Citi operates in an increasingly evolving and competitive business environment, which includes both financial and non-financial services firms, and emerging technologies. These companies compete on the basis of, among other factors, size, reach, quality and type of products and services offered, price, technology and reputation.

Citi's expenses increased 10% versus the prior year. The increase included fourth-quarter pretax charges of approximately $1.7 billion associated with the FDIC special assessment and approximately $780 million of restructuring charges.

Citi expects to incur additional costs related to its organizational simplification in the first quarter of 2024. These costs are part of Citi's ongoing efforts to streamline its operations.

Citi expects to incur higher net credit losses in 2024, primarily due to higher cards net credit loss rates, which Citi expects to rise above pre-pandemic levels and, on a full-year basis, peak in 2024. This higher net credit losses expectation is already reflected in the Company's ACL on loans for outstanding balances at December 31, 2023.

Citi's expenses increased 10% versus the prior year. Excluding both of these charges, expenses increased 5%, driven by increased investments in other risk and controls and technology, elevated business-as-usual severance costs and additional transformation and business-led investments.

Markets expenses of $13.2 billion increased 7%, primarily driven by investments in transformation, technology and other risk and controls, partially offset by productivity savings. Services expenses of $10.0 billion increased 15%, primarily driven by continued investment in technology and other risk and controls, volume-related expenses and business-led investments in TTS.

Citi's efforts include continued investments in its transformation, including the remediation of its consent orders. Citi's CEO has made the strengthening of Citi's risk and control environment a strategic priority and has established a Chief Operating Officer organization to centralize program management.

Citi returned $6.1 billion to common shareholders in the form of dividends ($4.1 billion) and share repurchases ($2.0 billion). In 2023, Citi repurchased $2.0 billion of common shares and paid $4.1 billion of common dividends.

Citi will continue to assess common share repurchases on a quarter-by-quarter basis given uncertainty regarding regulatory capital requirements. This indicates a cautious approach to capital allocation.

Citi's Common Equity Tier 1 (CET1) Capital ratio under the Basel III Standardized Approach increased to 13.4% as of December 31, 2023, compared to 13.0% as of December 31, 2022. This compares to Citi's required regulatory CET1 Capital ratio of 12.3% as of October 1, 2023 under the Basel III Standardized Approach.

Citi has embarked on a multiyear transformation, with the target outcome to change Citi's business and operating models such that they simultaneously strengthen risk and controls and improve Citi's value to customers, clients and shareholders. This includes efforts to effectively implement the October 2020 Federal Reserve Board (FRB) and Office of the Comptroller of the Currency (OCC) consent orders issued to Citigroup and Citibank, respectively.

As previously disclosed, Citi has committed to achieving net zero greenhouse gas (GHG) emissions associated with its financing by 2050, and net zero GHG emissions for its own operations by 2030; both are significant targets given the size and breadth of Citi's lending portfolios, businesses and operational footprint.

Citi has a Code of Conduct that maintains its commitment to the highest standards of conduct. The Code of Conduct is supplemented by a Code of Ethics for Financial Professionals that applies worldwide. The Audit Committee has responsibility for the oversight of Citi's Code of Ethics for Financial Professionals.

Various geopolitical, macroeconomic and regulatory challenges and uncertainties continue to adversely affect economic conditions in the U.S. and globally, including, among others, continued elevated interest rates, elevated inflation, and economic and geopolitical challenges related to China, the Russia-Ukraine war and escalating conflicts in the Middle East.

Citi's results are exposed to risks in Russia and Argentina, including increases in transfer risk associated with exposures in Russia and Argentina, driven by safety and soundness considerations under U.S. banking law. Citi also incurred approximately $1.9 billion in aggregate reserve builds related to increases in transfer risk associated with exposures in Russia and Argentina.

Citi's results are exposed to risks in Russia and Argentina, including increases in transfer risk associated with exposures in Russia and Argentina, driven by safety and soundness considerations under U.S. banking law. Citi also incurred approximately $1.9 billion in aggregate reserve builds related to increases in transfer risk associated with exposures in Russia and Argentina.