14 April 2016

Americas/United States
Equity Research
Large Cap Banks

Citigroup Inc. (C)

Rating OUTPERFORM
Price (14-Apr-16,US$) 45.02 EARNINGS
Target price (US$) 55.00
52-week price range 60.34 - 34.98
Market cap (US$ m) 132,413.89 Citi Remodeled; Prepped for 1Q16
Enterprise value (US$ m) 132,413.89 Citigroup will report earnings first thing Friday morning (April 15th). Exhibit 1 details
*Stock ratings are relative to the coverage universe in each our estimates vs. consensus. We're at $1.00; consensus is $1.03. The EPS forecast
analyst's or each team's respective sector.
¹Target price is for 12 months.
(-2% qtr/qtr; -34% year/year) reflects incremental weakness in capital markets,
Research Analysts stepped up investment in Cards, incremental energy-related loan loss reserve build
Susan Roth Katzke
($200-250mn) and another repositioning charge (~$400mn, as per CFO John
212 325 1237 Gerspach in mid-March). We forecast reported Citigroup revenues of $17.0bn (-8%
susan.katzke@credit-suisse.com qtr/qtr; -14% yr/yr); with weakness in both Global Consumer and ICG. ROTCE is
Evgeny Aleksandrov, CFA expected to come in at ~7% on 12.3% fully phased in Basel 3 CET1.
212 325 6934
evgeny.aleksandrov@credit-suisse.com
■ What Matters Most: (1) Global Consumer prospects (preparedness for Costco;
positioning for organic growth); Institutional Clients Group trading weakness no
Athena Xie
worse than peers, (2) progress on expense/systems initiatives; normalizing
212 538 3253
athena.xie@credit-suisse.com litigation costs; (3) relatively stable credit trends, ex. energy. Keep in mind… the
sale of OneMain Financial closed in November 2015; management aims to
maintain Holdings at or near breakeven (that's in our numbers). Citi will acquire
the Costco portfolio in late June, with incremental spend in anticipation
/preparation for that underway now.
■ In the aftermath of JPMorgan's results… look for trading revenues down ~15%
year/year and similar commentary about the month to month improvement in
market conditions with respect to both trading and banking, as we set up for 2Q.
In terms of credit, expect similar stability on the consumer side;
trends/deterioration no worse than JPM in terms of energy—expect manageable
loss realization, at this point.
■ Restatements; business unit reclassifications; model updated with no
estimate changes—on April 12th, Citi published restated financials reclassifying
consumer businesses in Argentina, Brazil and Columbia from Global Consumer
into Citi Holdings (consistent with the disclosed intention to exit) and shifting
Venezuela from GCB into Institutional Clients Group (activities predominantly
support ICG). Other changes include minor regional reclassification within ICG.
Following the restatement, we've restated our historical detail back to 2014 and
at the same time remodelled the GCB estimates based on geographic lines.
Share price performance Financial and valuation metrics
70 Year 12/15A 12/16E 12/17E 12/18E
60
EPS (CS adj.) (US$) 5.41 4.72 5.45 6.10
Prev. EPS (US$) - - - -
50
P/E (x) 8.3 9.5 8.3 7.4
40 Relative P/E (%) 48 56 55 55
30 Revenue (US$ m) 76,354.0 69,094.5 70,641.8 72,476.1
Ju l - 1 5 O ct - 1 5 Jan - 1 6 Apr- 16 Preprovision Income (US$ m) 32,739 29,081 30,840 32,087
Book Value (US$) 69.48 74.66 79.19 83.45
C.N S& P 5 0 0 IN D EX
Tangible book value (US$) 60.63 65.84 70.38 74.34
On 14-Apr-2016 the S&P 500 INDEX closed at 2083.33 ROE (%) 8.0 6.6 7.2 7.6
Daily Apr15, 2015 - Apr14, 2016, 04/15/15 = US$53.21 ROA (%) 0.89 0.80 0.89 0.95
Quarterly EPS Q1 Q2 Q3 Q4 Book Value (Next Qtr., US$) 69.9 Tangible BV (Next Qtr) (US$) 61.21
2015A 1.52 1.51 1.36 1.02 P/BV (x) (Next Qtr.) 0.65 P/TBV (Next Qtr) (x) 0.7
2016E 1.00 1.18 1.27 1.26 Dividend (current, US$) .2 Shares Outstanding (m) 2,941
2017E 1.37 1.38 1.36 1.33 Dividend yield (%) 0.4
Source: Company data, Thomson Reuters, Credit Suisse estimates

DISCLOSURE APPENDIX AT THE BACK OF THIS REPORT CONTAINS IMPORTANT DISCLOSURES, ANALYST
CERTIFICATIONS, AND THE STATUS OF NON-US ANALYSTS. US Disclosure: Credit Suisse does and seeks to do
business with companies covered in its research reports. As a result, investors should be aware that the Firm may have a
conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in
making their investment decision.
CREDIT SUISSE SECURITIES RESEARCH & ANALYTICS BEYOND INFORMATION®
Client-Driven Solutions, Insights, and Access
 14 April 2016

Continued from page 1…

■ Important Discussion Points on the Call: (1) the macro outlook—interest rates/the yield
curve, U.S/global GDP growth, (2) the capital markets environment—the month to month
progression in trading revenues and the current trading environment/activity levels
(prospects for a recapture of lost momentum in 1Q16); the health of the investment banking
pipeline and strategic dialogue, and the competitive landscape in FICC/market share
consolidation prospects; (3) organic growth initiatives—the level of incremental investment
spend required from here to solidify prospects, (4) update on asset dispositions (anything
new on the list), (5) Citi Holdings post the OneMain sale (residual expenses), (6) Costco
portfolio update, (7) emerging markets credit quality/growth prospects, (8) credit quality—
contagion risk/evidence; reserve adequacy, and (9) regulatory update—CCAR 2016 capital
return prospects—(a) why didn't Citi apply for additional repurchase under the de minimis
rule? (b) kudos on the Living Will results.

■ Conference call details: April 15th 11 am; (866) 516-9582.

Citigroup Inc. (C) 2

 14 April 2016

Citigroup 1Q16 Earnings Prep

Citigroup will report earnings first thing Friday morning (April 15th). Exhibit 1 details our
estimates vs. consensus. We're at $1.00; consensus is $1.03. The EPS forecast (-2%
qtr/qtr; -34% year/year) reflects incremental weakness in capital markets, stepped up
investment in Cards, incremental energy-related loan loss reserve build ($200-250mn) and
another repositioning charge (~$400mn, as per CFO John Gerspach in mid-March). We
forecast reported Citigroup revenues of $17.0 billion (-8% qtr/qtr; -14% yr/yr); with
weakness in both Global Consumer and ICG. ROTCE is expected to come in at ~7% on
12.3% fully phased in B3 CET1.
Keep in mind… the sale of OneMain Financial closed in November 2015; management
aims to maintain Holdings at or near breakeven (that's in our numbers). Citigroup will
acquire the Costco portfolio in late June of this year, with incremental spend in anticipation
/preparation for that underway now.
Figure 1: Credit Suisse Estimates versus StreetAccount Consensus
US$ in millions, unless otherwise stated
Citigroup Inc. 1Q16 Estimates: CS Estimates Consensus
($ in millions) Credit
1Q15A 4Q15A Suisse Consensus Y/Y Q/Q Y/Y Q/Q
Total revenue 19,736 18,456 16,919 17,450 -14% -8% -12% -5%
Net interest income 11,696 11,591 10,698 11,240 -9% -8% -4% -3%
Core trading revenue 4,351 2,824 3,742 3,695 -14% 33% -15% 31%
Investment banking 1,201 1,131 910 959 -24% -20% -20% -15%
Other noninterest income 2,488 2,910 1,569 1,556 – – – –
Total noninterest income 8,040 6,865 6,221 6,210 -23% -9% -23% -10%
Noninterest expense 10,884 11,134 10,369 10,740 -5% -7% -1% -4%
Operating efficiency 55.1% 60.3% 61.3% 61.5% – – – –
Provision for credit loss 1,915 2,514 1,940 2,080 1% -23% 9% -17%
Net interest margin 2.92% 2.92% 2.88% 2.91% -3 bps -4 bps -1 bps -1 bps
Tax rate 31% 29% 30% NA – – – –
Share count 3,039 2,970 2,971 NA -2% 0% – –
EPS $1.52 $1.02 $1.00 $1.03 -34% -2% -32% 1%
Net charge-offs 1,957 1,762 1,696 1,770 -13% -4% -10% 0%
Reserve build / (bleed) (202) 607 115 310 – – – –
AVG earning assets 1,625,316 1,572,892 1,491,874 1,563,000 -8% -5% -4% -1%
EOP loans 621,054 617,617 605,906 618,890 -2% -2% 0% 0%
Book value $66.79 $69.48 $69.94 $70.57 5% 1% 6% 2%
Tangible book value $57.76 $60.63 $61.21 $61.70 6% 1% 7% 2%
Source: Company data, Credit Suisse estimates, StreetAccount Consensus. Net interest income is on FTE basis. CS estimates are updated
post Citi released restatement in April 2016.

What Matters Most in the Earnings Report…

We'll be most focused on the organic revenue momentum in Global Consumer (seasonal
weakness in Card; evidence of the efficacy of the bank's stepped up investment spending
to sustain growth) and performance in the Institutional Clients Group, i.e., weakness no
worse than peers. Management no doubt remains very expense focused, but we expect
some back up in operating efficiency ratios given both top line weakness and increases in
investment spending. Credit costs are expected to be down 23% quarter to quarter— the
differential to peers results from the inclusion of an outsized provision against loans moved
to held for sale in Holdings in 4Q15, the sale of OneMain and significant, but less loan loss
reserve build in ICG in 1Q.

In the aftermath of JPMorgan's results… look for trading revenues down no more than
~15% year/year with similar commentary about the month to month improvement in market
conditions with respect to both trading and banking, as we set up for 2Q16. In terms of credit,
expect similar stability on the consumer side; trends/deterioration no worse than JPM in terms
of energy—expect manageable loss realization, at this point.

Citigroup Inc. (C) 3

 14 April 2016

Focusing in on business unit results, at Citi:

■ Global Consumer Banking. This business unit is the one most impacted by the
restatement/reclassification of businesses and our remodelling. We are anticipating
lower revenues (-0-1% qtr/qtr; -6% year/year)—with multiple cross currents here
including seasonal weakness in credit card, but some benefit to NII with general NIM
stability. In terms of expense management, we expect operating efficiency to come in
above the upper end of management's target for this unit of 49-52%, at 55.1%,
reflecting incremental investment in the business (credit cards in particular, with the
preparation for Costco on top of stepped up marketing spend to drive organic growth).
■ Institutional Clients Group (ICG). Capital markets related revenues are under
pressure for the industry this quarter; Citi should do no better or worse than peers. We
expect fixed income and equities markets revenues to be down about 15-20% yr/yr;
Based on data points from Dealogic, we expect investment banking fees to be down
~24% qtr/qtr and 20% yr/yr weighed down by an outsized decline in ECM and DCM.
"Other income" will be negatively impacted by Venezuelan currency changes (see
below). From an expense management standpoint, given continued revenue
weakness, we expect operating efficiency to remain elevated at 60% in the quarter
(target efficiency for this business is 53-57%). Note: we have factored in $250mn of
loan loss reserve build for energy and $150-200mn of restructuring (the lion's share of
the $400mn charge) in this business unit.
■ Citi Holdings. Post sale of OneMain in 4Q15, we expect Citi Holdings to be marginally
profitable in 1Q16, in line with company guidance.
■ Corporate/Other--repositioning charge: ~$400mn in Citicorp. We prefer to have
none of these, but some level will be recurring and this has now been factored into our
forecasts, through 2018. The repositioning charge addresses broad adjustments to
infrastructure and capacity across the bank; we expect the majority to reside in ICG
and welcome more detail on the earnings call.
■ Credit quality… as per management's March guidance update, we expect ~$350mn
provision in the ICG in 1Q16 most of which will be related to incremental loan loss
reserve build against the energy/commodities portfolio. Even with this loan loss reserve
increase and assuming a small uptick in the aggregate net credit loss rate, Citigroup's
total provision expense is expected to be down 23% qtr/qtr—the differential to peers
results from the inclusion of an outsized provision against loans moved to held for sale
in Holdings in 4Q15, the sale of OneMain and significant, but less loan loss reserve
build in ICG in 1Q. We refer readers to the detail, for reference, in our note Moving
Through the Cycle... What of the Cycle.
■ DTA usage/CET 1. Expect $0.5-1.0bn of DTA usage in the quarter, driving Basel 3
fully phased in CET1 ratio up to 12.3%, assuming no material change in risk weighted
assets.
■ FX-related loss in 1Q16. As disclosed in its 2015 10K filing, "Citi estimates that it will
incur an approximate $172 million foreign currency loss in the first quarter of 2016,
which could increase if the bolivar continues to devalue in the new SIMADI market".
This loss has been incorporated on the "other income" line in ICG.
■ Changes in reporting—Venezuela and Chile. From the 10K… While Citi does not
intend to exit its consumer businesses in Venezuela, these businesses are not
significant, lending predominantly to support ICG activities, and will be reported as part
of ICG beginning in 1Q16. Similarly, Citi’s remaining indirect investment in Banco de
Chile will be reported as part of ICG beginning in 1Q16. Note that with this week's
published restatements, we have updated historicals back to 2014 and remodelled the
GCB along geographic lines. Our estimates are unchanged.

Citigroup Inc. (C) 4

 14 April 2016

Important Discussion Points on the Conference Call

■ We'll listen for management to weigh in with their view of (1) the macro outlook—
interest rates/the yield curve, U.S/global GDP growth, (2) the capital markets
environment—the month to month progression in trading revenues and the current
trading environment/activity levels (prospects for a recapture of lost momentum in
1Q16); the health of the investment banking pipeline and strategic dialogue, and the
competitive landscape in FICC/market share consolidation prospects; (3) organic
growth initiatives—the level of incremental investment spend required from here to
solidify prospects, (4) update on asset dispositions (anything new on the list), (5) Citi
Holdings post the OneMain sale (residual expenses), (6) Costco portfolio update, (7)
emerging markets credit quality/growth prospects, (8) credit quality—contagion
risk/evidence; reserve adequacy, and (9) regulatory update—CCAR 2016 capital return
prospects—(a) why didn't Citi apply for additional repurchase under the de minimis
rule? (b) kudos on the Living Will results.

Conference call details: April 15th 11 am; (866) 516-9582

Reference Points to Prior Quarters

Reference Points from 1Q15… Keep in mind the following when looking at year over
year comparisons… legal and repositioning costs totaled $0.4bn in 1Q15. In terms of the
trading environment, 1Q15 was weaker/more mixed for Citi in the year ago period,
somewhat easing its comparisons in 1Q16 (vis a vis peers). Investment Banking
comparisons will be challenged by year ago strength in advisory and DCM partially offset
by weaker ECM.GCB results included a $110mn gain on the sale of Citi's Texas branches.
Reference Points from 4Q15… Citigroup incurred $724mn in legal and repositioning
charges and benefitted from several gains on divestitures in Citi Holdings, including the
sale of OneMain (mid-November; full earnings impact is felt in 1Q16), Japan retail and
cards businesses and other assets. In terms of the trading environment, here too, it was
quite weak in 4Q15, both FICC and Equities.
Please see our 1Q16 Banking Industry Earnings Preview, And Off We Go… Starting
2016 with Low Expectations; Can It Get Better from Here?
For a summary of the key themes and prospects for Large Cap Banks in 2016,
please refer to our 2016 Outlook: Defining the New "Normal" – Value in Change.
For an analysis of the share price and fundamental downside to earnings in a
stressed scenario, we refer to: A Sanity Check on Our Stressed Scenario.
We refer readers to our 10K update which contained both updated guidance
and detail on the business unit reclassifications. What's New in the 10K—
Updated Guidance Consistent with Reduced Estimates; Biz Unit Dispositions;
Credit Detail

Management Commentary and Financial Targets

Exhibit 2 reviews management commentary on prospects for the quarter, full year 2016
and longer term financial targets.

Citigroup Inc. (C) 5

 14 April 2016

Exhibit 2: Citigroup – Management's Public Commentary and Financial Targets

Expect fixed income and equity markets revenue to be down about 15% vs 1Q15, assuming March performance
is similar to January and February. IB fees are tradking down 25% yr/yr (consistent with Dealogic)--less ECM
ICG Revenue
and DCM and a tough comparison with strong M&A in 1Q15. Expect solid momentum in TTS, Private Banking
and Securities Services.

Global consumer revenues expected to be down slightly on a sequential basis, reflecting usual seasonality in
GCB Revenue
cards business.

1Q'16 Expect core expenses in Citicorp to be flat sequentially, but expect a repositioning charge of ~$400mm to resize
Expenses
Guidance infrastructure and capacity.
Expect cost of credit of corporate bank in 1Q16 to be ~$350mm, most of which is related to energy. Expect
Credit Quality funded reserve level of about 4.5% against energy. ICG cost of credit in 1H16 should be more in line with the run
rate in 3Q15 (~$600mm in total for the first half).
Plan to exit ~50 branches in 1Q16, including Boston area branches. With these actions over 90% of branch
Strategic actions
footprints will be concentrated in 6 key markets.

Citi Holdings Expect Citi Holdings to be marginally profitable.

Expect to return to growth in both total loans and revenues in the latter part of 2016 before the benefit of acquiring
the Costco portfolio (including continued effort to invest in U.S. cards). Expect to achieve low single-digit revenue
Revenue
growth in Citicorp while staying disciplined around target client strategy (modest level of rate increases built into
tail end of the year, one towards the middle of the year and another at the end of the year).

Expect Asia and Latin America revenues to stabilize in 1H16 and as volumes grow expect to see the sequential
growth in revenue. Look to return to positive operating leverage in 2H16. Expect the Consumer portfolios to be
International Business
more resilient than the broader market given focus on higher quality segments. Expect cards payment rate in
Mexico to remain elevated given the focus on higher credit quality segment of the market.

Net interest margin in 2016 will reflect the loss of OneMain earnings partially offset by the benefit of debt
buybacks for a net reduction of about 8 bps. Expect to recover 3 bps of this impact after acquisition of the
Costco portfolio which currently expect to occur closer to the end of 2Q15. Expect to see a benefit from higher
NIM/NII
rates through the year, but this rate benefit could be all or partially offset if trading NIM normalizes in 2016. Given
all these factors, expect NIM to be in the range of 285 - 290 bps for the 1H16 and then it will reflect Costco in the
second half.

Full Year Citicorp efficiency ratio should remain relatively unchanged at ~57% this year, before improving in 2017 and
2016 thereafter. Expect to drive efficiency ratio gain in core businesses as Citi continues to streamline operations,
Efficiency Ratio
adjust capacity, and capture the benefits of scale. Goal is to fund investments through additional operational
efficiencies.

Acquisitions Expect Costco portfolio acquisition to occur closer to June 2016.

Expect credit costs to be higher in 2016 as loan loss reserve releases are largely behind us, but the run rate for
Credit Quality full year 2016 should be somewhat lower than that in 4Q15. If oil were to drop to say $25 a barrel and stay there
for a sustained period of time then the first half cost of credit might double.
Tax Rate Tax rate expected to remain in the range of 30-31%.

RWA Expect to see modest increase in RWA in 2016.

Expect Citi Holdings to be marginally profitable in each quarter of 2016, and the assets should continue to come
down as well with a corresponding benefit to RWA. (expect the benefits of lower funding cost, the exit of loss
making portfolios and other repositioning efforts to offset virtually all of the operating earnings previously
Citi Holdings
contributed by OneMain. Citi signed agreements to reduce Citi Holdings GAAP assets by an additional $7bn in
2016 and will continue to pursue other sales. Moved a couple of large ~$8bn loans into held for sale and expect
to get rid of these loans in 1H16.
ROA target of at least 90bps in 2016 (unchanged), w/low to mid single-digit revenue growth in Citicorp. ROTCE
Long Term Financial Targets
target of 10+% near to medium term with mid-teens longer term.
Financial
Targets Efficiency target is mid-50s for Citicorp (ex-rates), 55-56% for Institutional Clients Group, 49-52% for Consumer
Efficiency Ratio
Banking.

Source: Management commentary

Citigroup Inc. (C) 6

 14 April 2016

Companies Mentioned (Price as of 14-Apr-2016)

Citigroup Inc. (C.N, $45.02, OUTPERFORM, TP $55.0)
Costco Wholesale Corporation (COST.OQ, $151.46)
JPMorgan Chase & Co. (JPM.N, $62.39)

Disclosure Appendix
Important Global Disclosures
I, Susan Roth Katzke, certify that (1) the views expressed in this report accurately reflect my personal views about all of the subject companies and
securities and (2) no part of my compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in
this report.
3-Year Price and Rating History for Citigroup Inc. (C.N)

C.N Closing Price Target Price Target Price Closing Price C.N
Date (US$) (US$) Rating 70
15-Apr-13 44.87 53.00 O
22-May-13 51.00 60.00 60
01-Oct-13 48.60 65.00
07-Apr-14 46.55 62.00 50

30-Sep-14 51.82 NR
40
07-Jan-15 51.17 60.00 N*
16-Apr-15 54.02 62.00 30
28-Sep-15 49.03 62.00 O 1- Jan- 14 1- Jan- 15 1- Jan- 16
15-Jan-16 42.47 58.00
O U T PERFO RM
26-Feb-16 39.50 57.00 N O T RA T ED
08-Mar-16 41.05 55.00 N EU T RA L

* Asterisk signifies initiation or assumption of coverage.

The analyst(s) responsible for preparing this research report received Compensation that is based upon various factors including Credit Suisse's
total revenues, a portion of which are generated by Credit Suisse's investment banking activities
As of December 10, 2012 Analysts’ stock rating are defined as follows:
Outperform (O) : The stock’s total return is expected to outperform the relevant benchmark* over the next 12 months.
Neutral (N) : The stock’s total return is expected to be in line with the relevant benchmark* over the next 12 months.
Underperform (U) : The stock’s total return is expected to underperform the relevant benchmark* over the next 12 months.
*Relevant benchmark by region: As of 10th December 2012, Japanese ratings are based on a stock’s total return relative to the analyst's coverage universe which
consists of all companies covered by the analyst within the relevant sector, with Outperforms representing the most attractive, Neutrals the less attractive, and
Underperforms the least attractive investment opportunities. As of 2nd October 2012, U.S. and Canadian as well as European ratings are based on a stock’s total
return relative to the analyst's coverage universe which consists of all companies covered by the analyst within the relevant sector, with Outperforms representing the
most attractive, Neutrals the less attractive, and Underperforms the least attractive investment opportunities. For Latin American and non-Japan Asia stocks, ratings
are based on a stock’s total return relative to the average total return of the relevant country or regional benchmark; prior to 2nd October 2012 U.S. and Canadian
ratings were based on (1) a stock’s absolute total return potential to its current share price and (2) the relative attractiveness of a stock’s total return potential within
an analyst’s coverage universe. For Australian and New Zealand stocks, the expected total return (ETR) calculation includes 12-month rolling dividend yield. An
Outperform rating is assigned where an ETR is greater than or equal to 7.5%; Underperform where an ETR less than or equal to 5%. A Neutral may be assigned
where the ETR is between -5% and 15%. The overlapping rating range allows analysts to assign a rating that puts ETR in the context of associated risks. Prior to 18
May 2015, ETR ranges for Outperform and Underperform ratings did not overlap with Neutral thresholds between 15% and 7.5%, which was in operation from 7 July
2011.
Restricted (R) : In certain circumstances, Credit Suisse policy and/or applicable law and regulations preclude certain types of communications,
including an investment recommendation, during the course of Credit Suisse's engagement in an investment banking transaction and in certain other
circumstances.
Volatility Indicator [V] : A stock is defined as volatile if the stock price has moved up or down by 20% or more in a month in at least 8 of the past 24
months or the analyst expects significant volatility going forward.
Analysts’ sector weightings are distinct from analysts’ stock ratings and are based on the analyst’s expectations for the fundamentals and/or
valuation of the sector* relative to the group’s historic fundamentals and/or valuation:
Overweight : The analyst’s expectation for the sector’s fundamentals and/or valuation is favorable over the next 12 months.
Market Weight : The analyst’s expectation for the sector’s fundamentals and/or valuation is neutral over the next 12 months.
Underweight : The analyst’s expectation for the sector’s fundamentals and/or valuation is cautious over the next 12 months.
*An analyst’s coverage sector consists of all companies covered by the analyst within the relevant sector. An analyst may cover multiple sectors.

Citigroup Inc. (C) 7

 14 April 2016

Credit Suisse's distribution of stock ratings (and banking clients) is:

Global Ratings Distribution
Rating Versus universe (%) Of which banking clients (%)
Outperform/Buy* 57% (39% banking clients)
Neutral/Hold* 31% (29% banking clients)
Underperform/Sell* 11% (45% banking clients)
Restricted 1%
*For purposes of the NYSE and NASD ratings distribution disclosure requirements, our stock ratings of Outperform, Neutral, and Underperform most closely
correspond to Buy, Hold, and Sell, respectively; however, the meanings are not the same, as our stock ratings are determined on a relative basis. (Please refer to
definitions above.) An investor's decision to buy or sell a security should be based on investment objectives, current holdings, and other individual factors.
Credit Suisse’s policy is to update research reports as it deems appropriate, based on developments with the subject company, the sector or the
market that may have a material impact on the research views or opinions stated herein.
Credit Suisse's policy is only to publish investment research that is impartial, independent, clear, fair and not misleading. For more detail please refer
to Credit Suisse's Policies for Managing Conflicts of Interest in connection with Investment Research: http://www.csfb.com/research-and-
analytics/disclaimer/managing_conflicts_disclaimer.html
Credit Suisse does not provide any tax advice. Any statement herein regarding any US federal tax is not intended or written to be used, and cannot
be used, by any taxpayer for the purposes of avoiding any penalties.

Target Price and Rating

Valuation Methodology and Risks: (12 months) for Citigroup Inc. (C.N)
Method: We arrive at our $55 target price for C using a discounted cash flow analysis. We assume a 12% cost of capital and a 3% terminal growth
rate in our analysis; near term target CET 1 fully phased in capital levels impact free cash flow analysis. A $55 valuation for C implies an
estimated price to forecast year end 2016 book value of 0.8x, which we believe to be reasonable given our forecast ROEs both absolute
and relative to peers. Valuation and total return potential drive our Outperform rating.
Risk: Primary risks to our $55 target price and Outperform rating include macroeconomic risk, increasing regulatory pressure, litigation and
related costs, and cybersecurity. Additional risks specific to C include the successful wind down of Citi Holdings, deterioration in emerging
markets growth prospects, and lackluster organic revenue growth aspects.

Please refer to the firm's disclosure website at https://rave.credit-suisse.com/disclosures for the definitions of abbreviations typically used in the
target price method and risk sections.
See the Companies Mentioned section for full company names
The subject company (C.N) currently is, or was during the 12-month period preceding the date of distribution of this report, a client of Credit Suisse.
Credit Suisse provided investment banking services to the subject company (C.N) within the past 12 months.
Credit Suisse provided non-investment banking services to the subject company (C.N) within the past 12 months
Credit Suisse has managed or co-managed a public offering of securities for the subject company (C.N) within the past 12 months.
Credit Suisse has received investment banking related compensation from the subject company (C.N) within the past 12 months
Credit Suisse expects to receive or intends to seek investment banking related compensation from the subject company (C.N) within the next 3
months.
Credit Suisse has received compensation for products and services other than investment banking services from the subject company (C.N) within
the past 12 months
As of the date of this report, Credit Suisse makes a market in the following subject companies (C.N).
Credit Suisse has a material conflict of interest with the subject company (C.N) . Credit Suisse is acting as a financial advisor for Springleaf in
relation to the acquisition of OneMain Financial from CitiFinancial Credit Company, a wholly-owned subsidiary of Citigroup.
As of the date of this report, an analyst involved in the preparation of this report has the following material conflict of interest with the subject
company (C.N). As of the date of this report, an analyst involved in the preparation of this report, Susan Katzke, has following material conflicts of
interest with the subject company. The analyst or a member of the analyst's household has a long position in the common and preferred stock
Citigroup (C).
Important Regional Disclosures
Singapore recipients should contact Credit Suisse AG, Singapore Branch for any matters arising from this research report.
The analyst(s) involved in the preparation of this report may participate in events hosted by the subject company, including site visits. Credit Suisse
does not accept or permit analysts to accept payment or reimbursement for travel expenses associated with these events.
Restrictions on certain Canadian securities are indicated by the following abbreviations: NVS--Non-Voting shares; RVS--Restricted Voting Shares;
SVS--Subordinate Voting Shares.
Individuals receiving this report from a Canadian investment dealer that is not affiliated with Credit Suisse should be advised that this report may not
contain regulatory disclosures the non-affiliated Canadian investment dealer would be required to make if this were its own report.
For Credit Suisse Securities (Canada), Inc.'s policies and procedures regarding the dissemination of equity research, please visit https://www.credit-
suisse.com/sites/disclaimers-ib/en/canada-research-policy.html.
Credit Suisse has acted as lead manager or syndicate member in a public offering of securities for the subject company (C.N) within the past 3
years.
As of the date of this report, Credit Suisse acts as a market maker or liquidity provider in the equities securities that are the subject of this report.
Principal is not guaranteed in the case of equities because equity prices are variable.

Citigroup Inc. (C) 8

 14 April 2016

Commission is the commission rate or the amount agreed with a customer when setting up an account or at any time after that.
For Credit Suisse disclosure information on other companies mentioned in this report, please visit the website at https://rave.credit-
suisse.com/disclosures or call +1 (877) 291-2683.

Citigroup Inc. (C) 9

 14 April 2016

References in this report to Credit Suisse include all of the subsidiaries and affiliates of Credit Suisse operating under its investment banking division. For more information on our structure, please use the
following link: https://www.credit-suisse.com/who-we-are This report may contain material that is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or
located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would subject Credit Suisse AG or its affiliates
("CS") to any registration or licensing requirement within such jurisdiction. All material presented in this report, unless specifically indicated otherwise, is under copyright to CS. None of the material, nor its
content, nor any copy of it, may be altered in any way, transmitted to, copied or distributed to any other party, without the prior express written permission of CS. All trademarks, service marks and logos used
in this report are trademarks or service marks or registered trademarks or service marks of CS or its affiliates. The information, tools and material presented in this report are provided to you for information
purposes only and are not to be used or considered as an offer or the solicitation of an offer to sell or to buy or subscribe for securities or other financial instruments. CS may not have taken any steps to
ensure that the securities referred to in this report are suitable for any particular investor. CS will not treat recipients of this report as its customers by virtue of their receiving this report. The investments and
services contained or referred to in this report may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about such investments or investment
services. Nothing in this report constitutes investment, legal, accounting or tax advice, or a representation that any investment or strategy is suitable or appropriate to your individual circumstances, or
otherwise constitutes a personal recommendation to you. CS does not advise on the tax consequences of investments and you are advised to contact an independent tax adviser. Please note in particular
that the bases and levels of taxation may change. Information and opinions presented in this report have been obtained or derived from sources believed by CS to be reliable, but CS makes no representation
as to their accuracy or completeness. CS accepts no liability for loss arising from the use of the material presented in this report, except that this exclusion of liability does not apply to the extent that such
liability arises under specific statutes or regulations applicable to CS. This report is not to be relied upon in substitution for the exercise of independent judgment. CS may have issued, and may in the future
issue, other communications that are inconsistent with, and reach different conclusions from, the information presented in this report. Those communications reflect the different assumptions, views and
analytical methods of the analysts who prepared them and CS is under no obligation to ensure that such other communications are brought to the attention of any recipient of this report. Some investments
referred to in this report will be offered solely by a single entity and in the case of some investments solely by CS, or an associate of CS or CS may be the only market maker in such investments. Past
performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is made regarding future performance. Information, opinions and
estimates contained in this report reflect a judgment at its original date of publication by CS and are subject to change without notice. The price, value of and income from any of the securities or financial
instruments mentioned in this report can fall as well as rise. The value of securities and financial instruments is subject to exchange rate fluctuation that may have a positive or adverse effect on the price or
income of such securities or financial instruments. Investors in securities such as ADR's, the values of which are influenced by currency volatility, effectively assume this risk. Structured securities are complex
instruments, typically involve a high degree of risk and are intended for sale only to sophisticated investors who are capable of understanding and assuming the risks involved. The market value of any
structured security may be affected by changes in economic, financial and political factors (including, but not limited to, spot and forward interest and exchange rates), time to maturity, market conditions and
volatility, and the credit quality of any issuer or reference issuer. Any investor interested in purchasing a structured product should conduct their own investigation and analysis of the product and consult with
their own professional advisers as to the risks involved in making such a purchase. Some investments discussed in this report may have a high level of volatility. High volatility investments may experience
sudden and large falls in their value causing losses when that investment is realised. Those losses may equal your original investment. Indeed, in the case of some investments the potential losses may
exceed the amount of initial investment and, in such circumstances, you may be required to pay more money to support those losses. Income yields from investments may fluctuate and, in consequence,
initial capital paid to make the investment may be used as part of that income yield. Some investments may not be readily realisable and it may be difficult to sell or realise those investments, similarly it may
prove difficult for you to obtain reliable information about the value, or risks, to which such an investment is exposed. This report may provide the addresses of, or contain hyperlinks to, websites. Except to the
extent to which the report refers to website material of CS, CS has not reviewed any such site and takes no responsibility for the content contained therein. Such address or hyperlink (including addresses or
hyperlinks to CS's own website material) is provided solely for your convenience and information and the content of any such website does not in any way form part of this document. Accessing such website
or following such link through this report or CS's website shall be at your own risk. This report is issued and distributed in Europe (except Switzerland) by Credit Suisse Securities (Europe) Limited, One Cabot
Square, London E14 4QJ, England, which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. This report is issued
and distributed in Europe (except Switzerland) by Credit Suisse International, One Cabot Square, London E14 4QJ, England, which is authorised by the Prudential Regulation Authority and regulated by the
Financial Conduct Authority and the Prudential Regulation Authority. This report is being distributed in Germany by Credit Suisse Securities (Europe) Limited Niederlassung Frankfurt am Main regulated by the
Bundesanstalt fuer Finanzdienstleistungsaufsicht ("BaFin"). This report is being distributed in the United States and Canada by Credit Suisse Securities (USA) LLC; in Switzerland by Credit Suisse AG; in
Brazil by Banco de Investimentos Credit Suisse (Brasil) S.A or its affiliates; in Mexico by Banco Credit Suisse (México), S.A. (transactions related to the securities mentioned in this report will only be effected
in compliance with applicable regulation); in Japan by Credit Suisse Securities (Japan) Limited, Financial Instruments Firm, Director-General of Kanto Local Finance Bureau (Kinsho) No. 66, a member of
Japan Securities Dealers Association, The Financial Futures Association of Japan, Japan Investment Advisers Association, Type II Financial Instruments Firms Association; elsewhere in Asia/ Pacific by
whichever of the following is the appropriately authorised entity in the relevant jurisdiction: Credit Suisse (Hong Kong) Limited, Credit Suisse Equities (Australia) Limited, Credit Suisse Securities (Thailand)
Limited, regulated by the Office of the Securities and Exchange Commission, Thailand, having registered address at 990 Abdulrahim Place, 27th Floor, Unit 2701, Rama IV Road, Silom, Bangrak, Bangkok
10500, Thailand, Tel. +66 2614 6000, Credit Suisse Securities (Malaysia) Sdn Bhd, Credit Suisse AG, Singapore Branch, Credit Suisse Securities (India) Private Limited (CIN no.
U67120MH1996PTC104392) regulated by the Securities and Exchange Board of India as Research Analyst (registration no. INH 000001030) and as Stock Broker (registration no. INB230970637;
INF230970637; INB010970631; INF010970631), having registered address at 9th Floor, Ceejay House, Dr.A.B. Road, Worli, Mumbai - 18, India, T- +91-22 6777 3777, Credit Suisse Securities (Europe)
Limited, Seoul Branch, Credit Suisse AG, Taipei Securities Branch, PT Credit Suisse Securities Indonesia, Credit Suisse Securities (Philippines ) Inc., and elsewhere in the world by the relevant authorised
affiliate of the above. Credit Suisse (Hong Kong) Limited ("CSHK") is licensed and regulated by the Securities and Futures Commission of Hong Kong under the laws of Hong Kong, which differ from
Australian laws. CSHKL does not hold an Australian financial services licence (AFSL) and is exempt from the requirement to hold an AFSL under the Corporations Act 2001 (the Act) under Class Order
03/1103 published by the ASIC in respect of financial services provided to Australian wholesale clients (within the meaning of section 761G of the Act). Research on Taiwanese securities produced by Credit
Suisse AG, Taipei Securities Branch has been prepared by a registered Senior Business Person. Research provided to residents of Malaysia is authorised by the Head of Research for Credit Suisse
Securities (Malaysia) Sdn Bhd, to whom they should direct any queries on +603 2723 2020. This report has been prepared and issued for distribution in Singapore to institutional investors, accredited
investors and expert investors (each as defined under the Financial Advisers Regulations) only, and is also distributed by Credit Suisse AG, Singapore branch to overseas investors (as defined under the
Financial Advisers Regulations). By virtue of your status as an institutional investor, accredited investor, expert investor or overseas investor, Credit Suisse AG, Singapore branch is exempted from complying
with certain compliance requirements under the Financial Advisers Act, Chapter 110 of Singapore (the "FAA"), the Financial Advisers Regulations and the relevant Notices and Guidelines issued thereunder,
in respect of any financial advisory service which Credit Suisse AG, Singapore branch may provide to you. This information is being distributed by Credit Suisse AG (DIFC Branch), duly licensed and regulated
by the Dubai Financial Services Authority (“DFSA”). Related financial services or products are only made available to Professional Clients or Market Counterparties, as defined by the DFSA, and are not
intended for any other persons. Credit Suisse AG (DIFC Branch) is located on Level 9 East, The Gate Building, DIFC, Dubai, United Arab Emirates. This research may not conform to Canadian disclosure
requirements. In jurisdictions where CS is not already registered or licensed to trade in securities, transactions will only be effected in accordance with applicable securities legislation, which will vary from
jurisdiction to jurisdiction and may require that the trade be made in accordance with applicable exemptions from registration or licensing requirements. Non-U.S. customers wishing to effect a transaction
should contact a CS entity in their local jurisdiction unless governing law permits otherwise. U.S. customers wishing to effect a transaction should do so only by contacting a representative at Credit Suisse
Securities (USA) LLC in the U.S. Please note that this research was originally prepared and issued by CS for distribution to their market professional and institutional investor customers. Recipients who are
not market professional or institutional investor customers of CS should seek the advice of their independent financial advisor prior to taking any investment decision based on this report or for any necessary
explanation of its contents. This research may relate to investments or services of a person outside of the UK or to other matters which are not authorised by the Prudential Regulation Authority and regulated
by the Financial Conduct Authority and the Prudential Regulation Authority or in respect of which the protections of the Prudential Regulation Authority and Financial Conduct Authority for private customers
and/or the UK compensation scheme may not be available, and further details as to where this may be the case are available upon request in respect of this report. CS may provide various services to US
municipal entities or obligated persons ("municipalities"), including suggesting individual transactions or trades and entering into such transactions. Any services CS provides to municipalities are not viewed as
"advice" within the meaning of Section 975 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. CS is providing any such services and related information solely on an arm's length basis and
not as an advisor or fiduciary to the municipality. In connection with the provision of the any such services, there is no agreement, direct or indirect, between any municipality (including the officials,
management, employees or agents thereof) and CS for CS to provide advice to the municipality. Municipalities should consult with their financial, accounting and legal advisors regarding any such services
provided by CS. In addition, CS is not acting for direct or indirect compensation to solicit the municipality on behalf of an unaffiliated broker, dealer, municipal securities dealer, municipal advisor, or investment
adviser for the purpose of obtaining or retaining an engagement by the municipality for or in connection with Municipal Financial Products, the issuance of municipal securities, or of an investment adviser to
provide investment advisory services to or on behalf of the municipality. If this report is being distributed by a financial institution other than Credit Suisse AG, or its affiliates, that financial institution is solely
responsible for distribution. Clients of that institution should contact that institution to effect a transaction in the securities mentioned in this report or require further information. This report does not constitute
investment advice by Credit Suisse to the clients of the distributing financial institution, and neither Credit Suisse AG, its affiliates, and their respective officers, directors and employees accept any liability
whatsoever for any direct or consequential loss arising from their use of this report or its content. Principal is not guaranteed. Commission is the commission rate or the amount agreed with a customer when
setting up an account or at any time after that.
Copyright © 2016 CREDIT SUISSE AG and/or its affiliates. All rights reserved.
Investment principal on bonds can be eroded depending on sale price or market price. In addition, there are bonds on which investment principal can
be eroded due to changes in redemption amounts. Care is required when investing in such instruments.
When you purchase non-listed Japanese fixed income securities (Japanese government bonds, Japanese municipal bonds, Japanese government guaranteed bonds, Japanese corporate bonds) from CS
as a seller, you will be requested to pay the purchase price only.

Citigroup Inc. (C) 10