citibank, n.a. macau branch disclosure of financial ......citibank, n.a. subsidiaries and ultimate...

Citibank, N.A. Macau Branch

Disclosure of Financial Information

June 30, 2020

Balance sheet as at June 30, 2020

Amount

Reserves,

depreciation

and provision Net amount

MOP’000 MOP’000 MOP’000

Assets

Cash - - -

Deposits at AMCM 540,255 - 540,255

Items-in-transit - - -

Demand deposit with local banks and other

financial institutions 15,167 - 15,167

Demand deposit with overseas banks and other

financial institutions 1,751,186 - 1,751,186

Other assets - - -

Loans and advances to customers 247,319 - 247,319

Available-for-sales securities issued by AMCM 449,518 - 449,518

Call and fixed deposits with overseas banks and

financial institutions - - -

Debtors 710 - 710

Equipment 173 160 13

Installation 1,048 1,048 -

Other fixed assets - - -

Internal and adjustment accounts 178,050 - 178,050

Total Assets 3,183,426 1,208 3,182,218



June 30, 2020

3

Balance sheet as at June 30, 2020 (continued)

Total

MOP’000 MOP’000

Liabilities

Demand deposits 2,347,378

Call deposits -

Fixed deposits 116,000 2,463,378

Foreign currency funding 267,727

Cheques and bills payable 10,502

Creditors 43,524

Other liabilities 198 321,951

Internal and adjusting accounts 184,439

Other reserves 5,933 190,372

Result from prior period 200,758

Result from current period 5,759 206,517

Total 3,182,218

Memorandum Items

Collaterals 119,743

Financial and performance guarantees 248,817

Trade related contingencies 136,086

Other commitments 2,188,372



June 30, 2020

4

Profit and loss account

for the period ended June 30, 2020

Debit Amount Credit Amount

MOP’000 MOP’000

Operating Expenses 6,729 Operating income 15,899

Salaries 1,170 Income from banking services 2,604

Contribution to defined Income from other

contribution plan 1 banking services 573

Other staff costs 134

Third party supplies -

Third party services 824

Other banking costs 3,004

Depreciation expenses 16

Operating profits 7,198

Total 19,076 Total 19,076



June 30, 2020

5

Result for the period ended June 30, 2020

Debit Amount Credit Amount

MOP’000 MOP’000

Operating loss - Operating profit 7,198

Profit tax provision 1,256

Reserve under AMCM rules 183

Result for current year

under AMCM rules 5,759

Total 7,198 Total 7,198



June 30, 2020

6

Cash flow statement

for the period ended June 30, 2020

June 30, 2020

MOP’000

Operating activities

Profit before taxation 7,198

Adjustments for:

Depreciation 16

Loss on disposal of fixed assets -

7,214

(Increase) / decrease in operating assets:

Loans and advances to customers 260,961

Placements with banks and other financial institutions with

original maturity beyond three months -

Trading financial assets -

Other assets 297,037

557,998

(Decrease) / increase in operating liabilities:

Deposits from customers (85,840)

Deposits and balances from banks and other financial institutions (353,400)

Trading financial liabilities -

Other liabilities 152,609

(286,631)

Cash (used in) / generated from operations 278,581

Macau Complementary Tax paid -

Net cash (used in) / generated from operating activities 278,581



7

Cash flow statement

for the year ended June 30, 2020 (continued)

June 30, 2020

MOP’000

Investing activities

Payment for purchase of fixed assets -

Net cash used in investing activities -

Financing activity

Profit transferred to Head Office -

Net cash used in financing activities -

Net (decrease) / increase in cash and cash equivalents 278,581

Cash and cash equivalents at January 1, 2020 2,429,311

Cash and cash equivalents at June 30, 2020 2,707,892

Cash flows from operating activities include:

Interest received 16,478

Interest paid (6,922)



8

ADDITIONAL INFORMATION

1 Derivatives

(a) Notional amounts of derivatives

June 30, 2020

MOP’000

Currency derivatives -

(b) Fair values of derivatives

The fair values of the above derivatives of the Branch are as follows:

June 30, 2020

MOP’000

Trading financial assets


Trading financial liabilities


(c) Credit Risk Weighted Exposure

Weighted

Exposure

MOP’000

Interest Rate Risk -

Exchange Rate Risk -

Total -



Derivatives refer to financial contracts whose value depends on the value of one or

more underlying assets or indices. The notional amounts of these instruments indicate

the volume of transactions outstanding and do not represent amounts at risk.

The Branch did not enter into any bilateral netting arrangements on derivative

transactions during the period and accordingly these amounts are shown on a gross

basis.

The credit risk weighted amounts of exchange rate contracts and interest rate contracts,

as calculated in accordance with Notice 011/2015-AMCM, are as follows for the

period ended June 30, 2020 for the Branch:

The following is the notional amounts of derivatives entered into by the Branch:

9

2 Material related party transactions

Transactions with group companies

Citibank, N.A.

subsidiaries

and ultimate

holding

company

Citibank, N.A.

branches and

Head Office

June 30, 2020 June 30, 2020

MOP’000 MOP’000

Interest income 10 3,867

Interest expense (41) (4,733)

Operating income - 2

Operating expenses (1,608) (1,340)

For the period ended June 30, 2020 (1,639) (2,204)

Placement of deposits

Opening balance - 406,643

Ending balance - -

Average balance - 203,322

Acceptance of deposits


Ending balance - 267,727


Cash and short-term funds

Opening balance - 1,123,139

Ending balance - 1,751,186

Average balance - 1,437,163



In addition to the transactions and balances disclosed elsewhere in these financial statements,

the Branch entered into the following material related party transactions.

During the period, the Branch entered into transactions with related parties in the normal

course of its banking business including lending, acceptance and placement of inter-bank

deposits, correspondent banking transactions and off-balance sheet transactions. The

transactions were priced at the relevant market rates at the time of each transaction.

The amount of related-party transactions during the period and outstanding balances at the end

of the period are set out below:

10

2 Material related party transactions (continued)

Transactions with group companies (continued)

Citibank, N.A.

subsidiaries

and ultimate

holding

company

Citibank, N.A.

branches and

Head Office

June 30, 2020 June 30, 2020

MOP’000 MOP’000

Other assets


Ending balance - 616


Other liabilities

Opening balance 3 926

Ending balance - 43,553

Average balance 2 22,240



No impairment allowance was made in respect of the above loans to and placements with

related parties.

11

3 Credit risk

(a)(i) Geographical analysis of loans and advances to customers

Location Sector

Gross loans

and

advances to

customers

not past due

or impaired

Past due

loans and

advances to

customers

Impaired

loans and

advances to

customers

Individually

assessed

impairment

allowance

Collectively

assessed

impairment

allowance

MOP’000 MOP’000 MOP’000 MOP’000 MOP’000

Macau SAR Others 243,454 - - - -

Hong Kong SAR Others - 3,865 - - -

Total 243,454 3,865 - - -

(a)(ii) Industrial distribution of loans and advances to customers

Industry

Gross loans

and

advances to

customers

not past due

or impaired

Past due

loans and

advances to

customers

Impaired

loans and

advances to

customers

Individually

assessed

impairment

allowance

Collectively

assessed

impairment

allowance


Manufacturing 243,454 - - - -

Trade (wholesale and retail) - 3,865 - - -

Total 243,454 3,865 - - -

The industrial distribution is based on the customer’s main business activities.



Distribution of loans and advances to customers by location at June 30, 2020.

The geographical analysis is classified based on the countries where the counterparties were incorporated,

without taking into account the transfer of risk. In general, risk transfer applies when the exposure is

guaranteed by a party situated in an area different from the counterparty.

At June 30, 2020, the Branch did not recognise any impairment of assets since there was no objective

evidence of impairment.

12

3 Credit risk (continued)

(b) Geographical analysis of debt securities and derivatives

Location Sector Debt investments Derivatives

MOP’000 MOP’000

Macau SAR Others 449,518 -

Hong Kong SAR Banks - -

Total 449,518 -



Debt investments (including AMCM Monetary Bills) and derivatives by geographical areas

over or equal 10% of total credit exposure.

At June 30, 2020, the Branch only had available-for-sale investments in unlisted monetary

bills issued by AMCM.

13

3 Credit risk (continued)

(c) Maturity analysis on assets and liabilities

Total On demand

1 month

or less

Over 1 month

to 3 months

Over 3

months

to 1 year

Over 1 year

to 3 years

Over

3 years Undated

MOP’000 MOP’000 MOP’000 MOP’000 MOP’000 MOP’000 MOP’000 MOP’000

Assets

Cash and balances with banks and other financial institutions 2,306,608 2,306,608 - - - - - -

Placements with banks and other financial institutions - - - - - - - -

Securities issued by Macao SAR Government and/or AMCM 449,518 - 199,840 249,678 - - - -

Loans and advances to non-bank customers 247,319 3,865 232,065 11,389 - - - -

Trading Financial assets - - - - - - - -

Fixed assets 13 - - - - - - 13

Others 178,760 713 42,557 91,873 43,617 - - -

3,182,218 2,311,186 474,462 352,940 43,617 - - 13

Liabilities

Deposits from non-bank customers 2,463,378 2,347,378 116,000 - - - - -

Deposits from holding and associated companies 267,727 48,234 219,493 - - - - -

Trading Financial liabilities - - - - - - - -

Other liabilities 232,511 54,449 42,551 91,894 43,617 - - -

Current Taxation 5,333 - - 1,899 1,898 1,536 - -

Deferred tax liability 819 - - - - - - 819

2,969,768 2,450,061 378,044 93,793 45,515 1,536 - 819

Asset-liability gap 212,450 (138,875) 96,418 259,147 (1,898) (1,536) - (806)



The following maturity profile is based on the remaining period at the balance sheet date to the contractual maturity date.

As the deposits may mature without being withdrawn, the contractual maturity dates do not represent expected dates of future cash flows.

14

4 Currency risk

As at June 30, 2020

HK Dollar US Dollars China Yuan Euro Total


Spot assets 749,556 1,433,323 1,452 1,213 2,185,544

Spot liabilities (788,978) (1,417,310) (1,452) (1,213) (2,208,953)

Forward purchases - - - - -

Forward sales - - - - -

Net position (39,422) 16,013 - - (23,409)

5 Liquidity ratio

MOP’000

Minimum weekly amount of cash in hand required to be held 51,703

Average weekly amount of cash in hand 520,131

Specified liquid assets at the end of each month 2,092,197

%

Average ratio of specified liquid asset to total basic liabilities

at the end of each month 106.0

One-month liquidity ratio in the last week of each month 110.0

Three-month liquidity ratio in the last week of each month 110.6



The Branch’s foreign currency positions mainly arise from foreign exchange dealing and other banking

related operations. All foreign currency positions are managed by the Treasury Department within

limits approved by the Regional Market Risk Management.

The liquid assets held and average liquidity ratio for the period are determined and calculated in

accordance with the rules on cash in hand and minimum liquidity requirements as set out and defined in

the AMCM Guideline Notice no. 006/93-AMCM.

Significant foreign exchange exposures, arising from trading, non-trading and structural positions are

shown as follows:

The following table indicates the arithmetic mean of liquid assets held and liquidity ratios for the period

ended June 30, 2020 for the Branch:

15

6 Off-balance sheet exposures other than derivatives transactions

7 Other information

Operating lease commitments

Properties, leases expiring: MOP’000

- within 1 year 251

- after 1 year but within 5 years -

Total 251



The positions are presented under Memorandum Items on Balance Sheet.

At June 30, 2020, the total future minimum lease payments under non-cancellable

operating leases for properties are payable as follows:

16

8 Ultimate parent / Board of directors

Michael Corbat

Chief Executive Officer

Citi

Ellen M. Costello

Former President, Chief

Executive Officer,

BMO Financial Corporation,

and Former U.S. Country

Head,

BMO Financial Group

Grace E. Dailey

Former Senior Deputy

Comptroller for Bank

Supervision Policy and Chief

National Bank Examiner, OCC

Barbara Desoer

Former Chief Executive

Officer,

Citibank, N.A.

John C. Dugan

Chair

Citigroup Inc.

Jane Fraser

President of Citi

Chief Executive Officer

Global Consumer Banking

Duncan P. Hennes

Co-Founder and Partner of

Atrevida Partners,

LLC

Peter Blair Henry

Former Dean

New York University

Stern School of Business

S. Leslie Ireland

Former Assistant Secretary for

Intelligence and Analysis,

U.S. Department of the

Treasury

Jay Jacobs

Former President and

Managing Director, Pacific

Investment Management

Company LLC (PIMCO)

Renée J. James

Chairman and CEO,

Ampere Computing, and

Operating Executive,

The Carlyle Group

Gary M. Reiner

Operating Partner,

General Atlantic LLC

Diana L. Taylor

Former Superintendent of

Banks,

State of New York

James S. Turley

Former Chairman and CEO,

Ernst & Young

Deborah C. Wright

Former Chairman of Carver

Bancorp, Inc.

Alexander Wynaendts

Former Chief Executive Officer

and Former Chairman of the

Management and Executive

Boards, Aegon N.V.

Ernesto Zedillo

Director, Center for the Study

of Globalization and Professor

in the Field of International

Economics and Politics,

Yale University



The Branch is part of Citibank, N.A., which is incorporated and domiciled in the United States of

America. Its ultimate holding company is considered to be Citigroup Inc., which is incorporated in the

United States of America.

Citigroup Board of Directors (up to the date of this Disclosure of Financial Information report):

17

9(a) Citibank, N.A. (Worldwide Consolidation of Citibank, N.A. and its subsidiaries)

Additional information

(Figures in US$ millions)

Capital and capital adequacy

Advanced

Approaches

Standardized

Approach

Common Equity Tier (CET1) Capital 137,476 137,476

Tier 1 capital 139,560 139,560

Total capital 155,799 163,574

CET1 Ratio 13.97% 13.77%

Tier 1 capital ratio 14.19% 13.98%

Total capital ratio 15.84% 16.38%

Stockholder’s equity 153,311 153,311

Total risk weighted assets 983,824 998,456

Other financial information

June 30, 2020

Total assets 1,633,678

Total liabilities 1,479,751

Total advances (net of allowances for loan losses) 626,351

Total deposits (including those from banks) 1,244,403

For the 6 months

period ended

June 30, 2020

Income from continuing operations before income taxes 2,739



Based on the “Collins Amendment” of the Dodd-Frank Act, Citibank N.A., as an Advanced

Approaches banking organization, is required to publicly report the lower of the capital ratios

calculated under Advance Approaches RWA and Standardised Approach RWA. For the period

presented, Citibank's reportable CET1 Capital and Tier 1 Capital ratios were the lower derived

under the U.S. Basel III Standardized Approach, whereas Citibank's Total Capital ratio was the

lower derived under the U.S. Basel III Advanced Approaches framework.

June 30, 2020

18

9 (b) Citigroup Inc. (the ultimate holding company of Citibank, N.A.)

Additional information

(Figures in US$ millions)

Capital and capital adequacy

Advanced

Approaches

Standardized

Approach

Common Equity Tier (CET1) Capital 139,643 139,643

Tier 1 capital 157,631 157,631

Total capital 187,553 196,452

CET1 Ratio 11.59% 11.76%

Tier 1 capital ratio 13.08% 13.28%

Total capital ratio 15.56% 16.55%

Stockholder’s equity 191,622 191,622

Total risk weighted assets 1,205,123 1,187,331

Other financial information

June 30, 2020

Total assets 2,232,715

Total liabilities 2,040,413

Total advances (net of allowances for loan losses) 658,872

Total deposits (including those from banks) 1,233,660

For the 6 months

period ended

June 30, 2020

Income from continuing operations before income taxes 4,558



June 30, 2020

Based on the “Collins Amendment” of the Dodd-Frank Act, Citi, as an Advanced Approaches

banking organization, is required to publicly report the lower of the capital ratios calculated

under Advance Approaches RWA and Standardised Approach RWA. For the period presented,

Citigroup's reportable CET1 Capital, Tier 1 Capital and Total Capital ratios were the lower

derived under the U.S. Basel III Advanced Approaches framework.

19

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