Citigroup Inc.

“Citi’s corporate clients are typically corporations that value the depth and breadth of Citi’s global network.”

“commercial warehouse lending in Spread Products.”

“clients whose needs encompass multiple products, including cash management and trade services, foreign exchange, lending, capital markets and M&A advisory.”

“provides financial and advisory services to a range of client segments consisting of ultra-high net worth, high net worth and affluent clients”

“Citi’s involvement in digital assets, including custody, asset tokenization and facilitation of clients’ digital assets activities, exposes Citi to increased operational risks”

“Banking maintains an international presence leveraging a global network of bankers supporting over 90 countries.”

“North America58 %57 %56 % International42 43 44”

“luding the Russia-related notable item, revenues were $86.4 billion.”

“Client investment assets(5) $670 $587 $496 14 %18 %”

“Investment Banking revenues increased 22%, driven by a 20% increase in investment banking fees across Advisory, DCM and ECM with a larger overall market wallet and overall wallet share gains.”

“All Other increased 13%, driven by growth in Mexico Consumer/SBMM (including the impact of Mexican peso appreciation), partially offset by the continued wind-downs in Asia Consumer within Legacy Franchises”

“USPB increased 5%, driven by growth in Retail Banking, largely due to transfers of certain relationships and associated mortgage loans to USPB from Wealth, as well as growth in Branded Cards.”

“Wealth increased 1%, with growth in margin lending primarily offset by the transfers of certain relationships and associated mortgage loans to USPB from Wealth.”

“Banking decreased 6%, due to lower aggregate customer demand for funded loans.”

“Citi’s combined top 25 exposures by country together with the U.S. represent 93% of Citi’s exposure to all countries as of December 31, 2025.”

“driven by growth in Mexico Consumer/SBMM (including the impact of Mexican peso appreciation)”

“Citi relies on third parties to support certain of its product and service offerings, which may put Citi at a disadvantage to competitors who may directly offer a broader array of products and services.”

“On February 18, 2026, Citi signed and closed the sale of AO Citibank, Citi’s former Russian subsidiary, to RenCap.”

“As of December 31, 2025, over 80% of Citi’s transformation programs were at or nearly at the Company’s target state.”

“Citi’s “Sustainability Report” provides information on its $1 Trillion Sustainable Finance Goal, including sustainable finance products and services that Citi provides to its clients to support their sustainability objectives.”

“the continued wind-downs in Asia Consumer within Legacy Franchises (including the impact of moving HFS loans to Other assets).”

“Citi performs a quarterly Risk Assessment of the Plan (RAOP) and continuously monitors risks associated with its execution of strategy.”

“Total exposure$292 $447 $78 $817 $292 $439 $77 $808 $264 $396 $63 $723”

“the Russia–Ukraine war could have further negative impacts on macroeconomic conditions, financial markets and commodities prices, adversely impacting Citi and its customers, clients or employees.”

“Such risks and uncertainties could adversely impact Citi’s clients, customers, businesses, funding costs, provisions and overall results of operations and financial condition during 2026.”

“Effective as of the first quarter of 2026, Citi transferred its Retail Banking business from USPB to Wealth, and the remaining USPB businesses, including Branded Cards and Retail Services, were integrated into a new U.S. Consumer Cards (USCC) segment.”

“Citi is working to address the FRB and OCC Consent Orders, which include improvements to Citi’s CRM Framework and its enterprise-wide application”

“Citi is also continually required to interpret and implement extensive and frequently changing regulatory and legislative requirements within the U.S. and in other jurisdictions in which it does business, which may overlap or conflict across jurisdictions, resulting in substantial compliance, regulatory and other risks and costs.”

“These threats can arise from external parties, including cyber criminals, cyber terrorists, hacktivists and nation-state actors, as well as insiders who knowingly or unknowingly engage in or enable malicious cyber activities.”

“Citi has experienced and could experience further losses associated with manual transaction processing errors, including erroneous payments to lenders or manual errors by Citi traders that cause system and market disruptions and losses for Citi and its clients.”

“Compliance risk exposes Citi to fines, civil money penalties, payment of damages and the voiding of contracts.”

“Citi expects to more broadly integrate Generative AI tools within its systems, businesses and functions, including advanced AI capabilities, such as autonomous agents and sophisticated user interactions, which if improperly managed, could result in increased risks and costs.”

“Material strategic risks that Citi is monitoring include the impacts of adverse changes in inflation and interest rates in the U.S., as well as macroeconomic uncertainties driven by weak global growth, tariffs, geopolitical issues and changing regulatory requirements.”

“Citi operates in several countries that have strict capital controls, currency controls and/or sanctions that limit its ability to convert local currency into U.S. dollars and/or transfer funds outside of those countries.”

“passing legislation such as the GENIUS Act and pursuing a more favorable regulatory approach, although the legal and regulatory landscape remains highly uncertain.”

“Citi’s ESRM Policy describes sector approaches to certain high-carbon sectors, including thermal coal mining and power.”

“This contemporaneous reporting on significant cyber events includes information and discussion around incident response, legal obligations (including disclosure), and outreach and notification to regulators and customers when needed.”

“Country risk is the risk of loss from economic, financial, political, legal or social conditions in the various countries and jurisdictions that Citi is exposed to.”

“heightened focus on delivering the transformation of its risk and control environment pursuant to the 2020 FRB and OCC Consent Orders.”

“Climate change presents both immediate and long-term risks to Citi, with the risks expected to increase over time.”

“The Group Reputation Risk Committee and Management Forums, which are composed of Citi’s senior executives, govern the process by which material reputation risks are identified, measured, monitored, controlled, escalated and reported.”

“Citi has developed and embedded climate risk assessments in its credit underwriting process for certain sectors that have been identified as higher climate risk.”

“instant and 24/7 payments products could be accompanied by challenges to forecasting and managing liquidity, as well as increased operational and compliance risks.”

“Internal ratings that generally correspond to BBB and above are considered investment grade, while those below are considered non-investment grade.”