19
Citibank, N.A. Macau Branch Disclosure of Financial Information June 30, 2019
Citibank, N.A. Macau Branch
Disclosure of Financial Information
June 30, 2019
Citibank, N.A. Macau Branch
Disclosure of Financial Information
3
Balance sheet as at June 30, 2019
June 30, 2019
Amounts
Reserves,
depreciation
and provision Net amount
MOP ‘000 MOP ‘000 MOP ‘000
Assets
Cash - - -
Deposits at AMCM 238,491 - 238,491
Items-in-transit - - -
Demand deposit with local
banks and other financial
institutions 29,599 - 29,599
Demand deposits with
overseas banks and other
financial institutions 1,026,239 - 1,026,239
Other assets - - -
Loans and advances to
customers 1,200,889 - 1,200,889
Available-for-sales securities
issued by AMCM 400,000 - 400,000
Call and fixed deposits with
overseas banks and
financial institutions 227,617 - 227,617
Debtors 2,260 - 2,260
Equipment 173 127 46
Installation 1,048 1,048 -
Other fixed assets - - -
Internal and adjustment
accounts 134,625 - 134,625
Total 3,260,941 1,175 3,259,766
Citibank, N.A. Macau Branch
Disclosure of Financial Information
4
Balance sheet as at June 30, 2019 (continued)
June 30, 2019
Total
MOP ‘000 MOP ‘000
Liabilities
Demand deposits 1,188,978
Call deposits -
Fixed deposits 460,617 1,649,595
Foreign currency funding 1,163,565
Cheques and bills payable 13,351
Creditors 94,386
Other liabilities 171 1,271,473
Internal and adjusting accounts 142,577
Other reserves 11,288 153,865
Result from prior period 170,160
Result from current period 14,673 184,833
3,259,766
Memorandum Items
Financial and performance guarantees 81,118
Trade related contingencies 85,707
Forward foreign exchange purchases 660,701
Forward foreign exchange sales 660,010
Citibank, N.A. Macau Branch
Disclosure of Financial Information
5
Profit and loss account
for the period ended June 30, 2019
June 30, 2019
Debit Amount Credit Amount
MOP ‘000 MOP ‘000
Operating Expenses 8,243 Operating income 19,144
Salaries 995
Income from banking
services 6,024
Contribution to defined
contribution plan 3
Income from other
banking services 1,883
Other staff costs 73
Third party supplies -
Third party services 676
Other banking costs 2,867
Depreciation expenses 157
Operating profit 14,037
Total 27,051 Total 27,051
Citibank, N.A. Macau Branch
Disclosure of Financial Information
6
Result for the period ended June 30, 2019
June 30, 2019
Debit Amount Credit Amount
MOP ‘000 MOP ‘000
Operating loss - Operating profit 14,037
Profit tax provision 1,677
Reserve under AMCM
rules (2,313)
Result for current year
under AMCM rules 14,673
Total 14,037 Total 14,037
Citibank, N.A. Macau Branch
Disclosure of Financial Information
7
Cash flow statement
for the period ended June 30, 2019
June 30, 2019
MOP ‘000
Operating activities
Profit before taxation 14,037
Adjustments for:
Depreciation 157
Loss on disposal of fixed asset -
14,194
-----------------
(Increase) / decrease in operating assets:
Loans and advances to customers 263,914
Placements with banks and other financial institutions
with original maturity beyond three months -
Trading financial assets 23,710
Other assets 107,445
395,069
-----------------
(Decrease) / increase in operating liabilities:
Deposits from customers 325,045
Deposits and balances from banks and other financial
institutions (183,075)
Trading financial liabilities (22,807)
Other liabilities 28,587
147,750
-----------------
Cash (used in) / generated from operations 557,013
Macau Complementary Tax paid -
Net cash (used in) / generated from operating activities 557,013
-----------------
Citibank, N.A. Macau Branch
Disclosure of Financial Information
8
Cash flow statement
for the period ended June 30, 2019 (continued)
June 30, 2019
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 557,013
Cash and cash equivalents at January 1, 2019 1,364,197
Cash and cash equivalents at June 30, 2019 1,921,210
Cash flows from operating activities include:
Interest received 22,558
Interest paid (9,868)
Citibank, N.A. Macau Branch
Disclosure of Financial Information
9
ADDITIONAL INFORMATION
1 Derivatives
(a) Notional amounts of derivatives
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 following is the notional amounts of derivatives entered into by the Branch:
June 30, 2019
MOP ‘000
Currency derivatives 1,320,710
(b) Fair values of derivatives
The fair values of the above derivatives of the Branch are as follows:
June 30, 2019
MOP ‘000
Trading financial assets
Currency derivatives 15,210
Trading financial liabilities
Currency derivatives 14,523
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.
(c) Credit Risk Weighted Exposure
The credit risk weighted amounts of exchange rate contracts and interest rate contracts, as
calculated in accordance with Notice 013/93-AMCM, are as follows for the period ended
June 30, 2019 for the Branch:
Weighted
Exposure
MOP’000
Interest Rate Risk -
Exchange Rate Risk 6,940
Total 6,940
Citibank, N.A. Macau Branch
Disclosure of Financial Information
10
2 Material related party transactions
In addition to the transactions and balances disclosed elsewhere in these financial
statements, the Branch entered into the following material related party transactions.
Transactions with group companies
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:
Citibank N.A. subsidiaries and ultimate holding
company
Citibank, N.A. branches and
Head Office June 30, 2019 June 30, 2019
MOP ‘000 MOP ‘000
Interest income - 2,429
Interest expense - (7,452)
Operating income - 3
Operating expenses (2,181) (595)
For the period ended
June 30, 2019 (2,181) (5,615)
Placement of deposits
Opening balance - 68,162
Ending balance - 227,617
Average balance - 147,889
Acceptance of deposits
Opening balance - 1,374,623
Ending balance - 1,163,565
Average balance - 1,269,094
Cash and short-term funds
Opening balance - 636,563
Ending balance - 1,026,239
Average balance - 831,401
Citibank, N.A. Macau Branch
Disclosure of Financial Information
11
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, 2019 June 30, 2019 MOP ‘000 MOP ‘000
Other assets
Opening balance - 63,012
Ending balance - 2,297
Average balance - 32,654
Other liabilities
Opening balance 40 4,464
Ending balance 3 94,614
Average balance 21 49,539
No impairment allowance was made in respect of the above loans to and placements with
related parties.
Citibank, N.A. Macau Branch
Disclosure of Financial Information
12
3 Credit risk
Distribution of loans and advances to customers by location at June 30, 2019.
(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 1,091,356 73,460 - - -
Hong Kong SAR Others 36,050 23 - - -
Total 1,127,406 73,483 - - -
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, 2019, the Branch did not recognise any impairment of assets since there was
no objective evidence of impairment.
(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
MOP ‘000 MOP ‘000 MOP ‘000 MOP ‘000 MOP ‘000
Manufacturing 1,127,406 73,483 - - -
Trade (wholesale and retail) - - - - -
Total 1,127,406 73,483 - - -
The industrial distribution is based on the customer’s main business activities.
Citibank, N.A. Macau Branch
Disclosure of Financial Information
13
3 Credit risk (continued)
(b) Geographical analysis of debt securities and derivatives
Debt investments (including AMCM Monetary Bills) and derivatives by geographical areas
over or equal 10% of total credit exposure.
Location Sector
Debt
investments Derivatives
MOP ‘000 MOP ‘000
Macau SAR Others 399,263 -
Hong Kong SAR Banks - 687
Total 399,263 687
At June 30, 2019, the Branch only had available-for-sale investments in unlisted monetary
bills issued by AMCM.
At June 30, 2019, the Branch entered into back-to-back transactions with related party to
square off the position of all derivative contracts of the Branch. The above amount
represents the net fair value gain.
Citibank, N.A. Macau Branch
Disclosure of Financial Information
14
3 Credit risk (continued)
(c) Maturity analysis on assets and liabilities
The following maturity profile is based on the remaining period at the balance sheet date to the contractual maturity date.
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 financial institutions 1,294,329 1,294,329 - - - - - -
Placements with banks and other financial institutions 227,617 - 227,617 - - - - -
Securities issued by Macao SAR Government and/or AMCM 399,263 - 149,869 249,394 - - - -
Loans and advances to non-bank customers 1,200,889 73,483 769,223 291,611 66,572 - - -
Trading Financial assets 15,210 - 4,275 5,546 5,389 - - -
Fixed assets 46 - - - - - - 46
Others 122,412 2,300 36,693 49,968 33,451 - - -
3,259,766 1,370,112 1,187,677 596,519 105,412 - - 46
Liabilities
Deposits from non-bank customers 1,649,595 1,188,978 424,617 36,000 - - - -
Deposits from holding and associated companies 1,163,565 - 1,129,432 34,133 - - - -
Trading Financial liabilities 14,523 - 4,103 5,270 5,150 - - -
Other liabilities 227,804 108,112 36,585 49,683 33,424 - - -
Current Taxation 6,619 - - 2,321 2,321 1,977 - -
Deferred tax liability 1,539 - - - - - - 1,539
3,063,645 1,297,090 1,594,737 127,407 40,895 1,977 - 1,539
Asset-liability gap 196,121 73,022 (407,060) 469,112 64,517 (1,977) - (1,493)
As the deposits may mature without being withdrawn, the contractual maturity dates do not represent expected dates of future cash flows.
Citibank, N.A. Macau Branch
Disclosure of Financial Information
15
4 Currency risk
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.
Significant foreign exchange exposures, arising from trading, non-trading and structural
positions are shown as follows:
As at June 30, 2019
HK Dollars US Dollars China Yuan Euro Total
MOP ‘000 MOP ‘000 MOP ‘000 MOP ‘000 MOP ‘000
Spot assets 1,326,341 743,495 2,169 515,527 2,587,532
Spot liabilities (1,343,321) (726,794) (2,126) (519,083) (2,591,324)
Forward purchases - 338,682 - 82,375 421,057
Forward sales - (337,990) - (82,375) (420,365)
Net position (16,980) 17,393 43 (3,556) (3,100)
5 Liquidity ratio
The following table indicates the arithmetic mean of liquid assets held and liquidity ratios
for the period ended June 30, 2019 for the Branch:
MOP’000
Minimum weekly amount of cash in hand required to be held 37,958
Average weekly amount of cash in hand 65,071
Specified liquid assets at the end of each month 1,896,383
%
Average ratio of specified liquid asset to total basic liabilities
at the end of each month 102.3
One-month liquidity ratio in the last week of each month 92.1
Three-month liquidity ratio in the last week of each month 99.3
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.
Citibank, N.A. Macau Branch
Disclosure of Financial Information
16
6 Off-balance sheet exposures other than derivatives transactions
The positions are presented under Memorandum Items on Balance Sheet.
7 Other information
Operating lease commitments
At June 30, 2019, the total future minimum lease payments under non-cancellable
operating leases for properties are payable as follows:
Properties, leases expiring: MOP ‘000
- within 1 year 251
- after 1 year but within 5 years 251
Total 502
Citibank, N.A. Macau Branch
Disclosure of Financial Information
17
8 Ultimate parent / Board of directors
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):
Michael Corbat
Chief Executive Officer
Citigroup
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.
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
Gene McQuade
Former Chief Executive Officer,
Citibank, N.A. and Former Vice
Chairman, Citigroup Inc.
Gary M. Reiner
Operating Partner,
General Atlantic LLC
Diana L. Taylor
Former Superintendent of Banks,
State of New York
Alexander Wynaendts
Chief Executive Officer, and
Chairman of the Management and
Executive Boards, Aegon N.V.
James S. Turley
Former Chairman and CEO,
Ernst & Young
Ernesto Zedillo
Director, Center for the Study
of Globalization and Professor
in the Field of International
Economics and Politics,
Yale University
Deborah C. Wright
Former Chairman of Carver
Bancorp, Inc.
Citibank, N.A. Macau Branch
Disclosure of Financial Information
18
9 (a) Citibank, N.A. (Worldwide Consolidation of Citibank, N.A. and its
subsidiaries)
Additional information
(Figures in US$ millions) At June 30, 2019
Capital and capital adequacy
Advanced
Approaches
Standardized
Approach
Tier 1 capital 132,875 132,875
Total capital 145,554 156,304
Tier 1 capital ratio 14.22% 12.76%
Total capital ratio 15.57% 15.01%
Stockholder’s equity 150,289 150,289
Total risk weighted assets 934,661 1,041,349
The capital components and ratios are calculated under the final U.S. Basel III rules,
reflecting full implementation.
Based on the “Collins Amendment” of the Dodd-Frank Act, Citibank N.A., as an Advanced
Approaches banking organisation, is required to publicly report the lower of the capital
ratios calculated under Advance Approaches RWA and Standardised Approach RWA
starting on 1 January, 2015.
Other financial information
At June 30, 2019
Total assets
1,459,623
Total liabilities 1,308,735
Total advances (net of allowances for loan losses) 638,322
Total deposits (including those from banks) 1,069,481
For the 6 months
period ended
June 30, 2019
Pre Tax Profit 10,985
Citibank, N.A. Macau Branch
Disclosure of Financial Information
19
9 (b) Citigroup Inc. (the ultimate holding company of Citibank, N.A.)
Additional information
(Figures in US$ millions) At June 30, 2019
Capital and capital adequacy
Advanced
Approaches
Standardized
Approach
Tier 1 capital 159,447 159,447
Total capital 185,498 197,679
Tier 1 capital ratio 14.07% 13.43%
Total capital ratio 16.36% 16.65%
Stockholder’s equity 197,359 197,359
Total risk weighted assets 1,133,593 1,187,328
The capital components and ratios are calculated under the final U.S. Basel III rules,
reflecting full implementation.
Based on the “Collins Amendment” of the Dodd-Frank Act, Citi, as an Advanced
Approaches banking organisation, is required to publicly report the lower of the capital
ratios calculated under Advance Approaches RWA and Standardised Approach RWA
starting on 1 January, 2015.
Other financial information
At June 30, 2019
Total assets
1,988,226
Total liabilities 1,790,116
Total advances (net of allowances for loan losses) 676,204
Total deposits (including those from banks) 1,045,607
For the 6 months
period ended
June 30, 2019
Pre Tax Profit 12,177
