citibank, n.a. macau branch disclosure of financial ......citibank, n.a. subsidiaries and ultimate...
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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
Citibank, N.A. Macau Branch
Disclosure of Financial Information
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
Citibank, N.A. Macau Branch
Disclosure of Financial Information
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
Citibank, N.A. Macau Branch
Disclosure of Financial Information
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
Citibank, N.A. Macau Branch
Disclosure of Financial Information
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
Citibank, N.A. Macau Branch
Disclosure of Financial Information
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)
Citibank, N.A. Macau Branch
Disclosure of Financial Information
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
Currency derivatives -
Trading financial liabilities
Currency derivatives -
(c) Credit Risk Weighted Exposure
Weighted
Exposure
MOP’000
Interest Rate Risk -
Exchange Rate Risk -
Total -
Citibank, N.A. Macau Branch
Disclosure of Financial Information
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
Opening balance - 579,551
Ending balance - 267,727
Average balance - 423,639
Cash and short-term funds
Opening balance - 1,123,139
Ending balance - 1,751,186
Average balance - 1,437,163
Citibank, N.A. Macau Branch
Disclosure of Financial Information
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
Opening balance - 411,221
Ending balance - 616
Average balance - 205,919
Other liabilities
Opening balance 3 926
Ending balance - 43,553
Average balance 2 22,240
Citibank, N.A. Macau Branch
Disclosure of Financial Information
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
MOP’000 MOP’000 MOP’000 MOP’000 MOP’000
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.
Citibank, N.A. Macau Branch
Disclosure of Financial Information
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 -
Citibank, N.A. Macau Branch
Disclosure of Financial Information
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)
Citibank, N.A. Macau Branch
Disclosure of Financial Information
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
MOP’000 MOP’000 MOP’000 MOP’000 MOP’000
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
Citibank, N.A. Macau Branch
Disclosure of Financial Information
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
Citibank, N.A. Macau Branch
Disclosure of Financial Information
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
Citibank, N.A. Macau Branch
Disclosure of Financial Information
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
Citibank, N.A. Macau Branch
Disclosure of Financial Information
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
Citibank, N.A. Macau Branch
Disclosure of Financial Information
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