CITIBANK, N.A. NEW ZEALAND BRANCH AND ASSOCIATED … · External Directorships: Emerson Electric...

Registered office

Citigroup Centre

23 Customs Street East

Auckland 1010

CITIBANK, N.A.

NEW ZEALAND BRANCH

AND ASSOCIATED BANKING GROUP

DISCLOSURE STATEMENT

31st DECEMBER, 2017

Page No.

General disclosures 3

Including conditions of registration, credit ratings and information and financial data of the overseas banking group

Consolidated statement of comprehensive income 9

Consolidated statement of changes in equity 10

Consolidated statement of financial position 11

Consolidated statement of cash flows 12

Notes to the disclosure statements

1 Significant accounting policies 13

2 Financial risk management 18

3 Interest Income 21

4 Other income 21

5 Operating expenses 21

6 Taxation 22

7 Derivative financial instruments 22

8 Available for sale assets 22

9 Other assets 23

10 Past due assets 23

11 Property, plant and equipment 23

12 Provisions 23

13 Other liabilities 24

14 Cash and cash equivalents 24

15 Statement of cash flows reconciliation to profit 24

16 Related party transactions 24

17 Share based payments 26

18 Fiduciary activities 26

19 Contingent liabilities and commitments 26

20 Capital and reserves 27

21 Credit risk rating 28

22 Interest rate risk repricing schedule 29

23 Liquidity risk - maturity profile 30

24 Foreign currency risk 32

25 Fair value 32

26 Concentrations of credit exposure 34

27 Concentrations of funding 34

28 Credit exposures to individual counterparties 35

29 Exposures to market risk 35

30 Capital adequacy 37

31 Imputation credit account 37

32 Total liabilities to third parties - branch 37

33 Subsequent events 37

Directors' statement 38

Independent auditor's report 39

TABLE OF CONTENTS

CITIBANK, N.A. NEW ZEALAND BRANCH AND ASSOCIATED BANKING GROUP

Name and address for service of the Banking Group

Citibank, N.A.

Citigroup Centre


Auckland 1010

Name and address for service of the Overseas Bank (Citibank, N.A.) outside New Zealand

Citibank, N.A. (CBNA)

701 East 60th Street North

Sioux Falls

South Dakota 57104

United States of America

Name and address for service of the Ultimate Holding Company (Citigroup Inc.) of the Overseas Bank (Citibank, N.A.)

Citigroup Inc.

388 Greenwich Street

New York, NY 10013


Registered bank: Directorate and auditors

Responsible person of Citibank, N.A. in New Zealand

Address for service

Citibank, N.A.

Citibank Centre


Auckland 1010

Name Technical or Professional Qualifications

Derek Syme Lincoln University, B.Com. in Finance and Economics, 1987

Citi Country Officer University of Otago, Post Graduate Diploma in Finance, 1989

Citibank, N.A. New Zealand Branch

External Directorships:

American Chamber of Commerce in New Zealand (President)

Responsible person of Citibank, N.A. signing as agent for all Citibank, N.A. Directors

Timothy Sedgwick Bachelor of Commerce majoring in Accounting,

Chief Financial Officer University of New South Wales, 1990

Citi Australia / New Zealand Membership of the Institute of Chartered Accountants in Australia, 1994

External Directorships: None

Australia

Citibank, N.A. was originally organized on 16 June 1812, and formed a national banking association organized on 17 July 1865 under The National Bank Act

of 1864 (United States of America).

Country of Residence

New Zealand


GENERAL DISCLOSURES

The financial statements are the aggregated financial statements for the "Banking Group" which consists of Citibank, N.A. New Zealand Branch (CBNA New

Zealand Branch) and the Associated Banking Group (Citicorp Services Limited and Citibank Nominees (New Zealand) Limited).

Directors of Citibank, N.A.

Address for Service of the Directors

Citibank, N.A.

388 Greenwich Street

New York, NY 10013


Name Technical or Professional Qualifications

Anthony M. Santomero USA Brown University, Ph.D. in Economics, 1971

Chairman, Citibank, N.A.

Former President, Federal Reserve Bank of Philadelphia.

External Directorships: Columbia Funds;

Penn Mutual Life Insurance Company;

RenaissanceRe Holdings, Ltd.

Ellen M. Costello USA St. Francis Xavier University, B.B.A., 1976

Former President, Chief Executive Officer, Dalhousie University, M.B.A., 1983

BMO Financial Corporation and Former U.S. Country Head,

BMO Financial Group.


Barbara J. Desoer USA Mount Holyoke College, B.A., 1974

Chief Executive Officer University of California, Berkeley

Citibank, N.A. - Haas School of Business, M.B.A., 1977

External Directorships: Davita Healthcare Partners Inc.

Duncan P. Hennes USA University of Pennsylvania, B.S., 1978

Co-Founder/Partner, Atrevida Partners, LLC. Wharton School, M.B.A., 1979

External Directorships: Freeman & Co. LLC;

RenaissanceRe Holdings.

Eugene M. McQuade USA St. Bonaventure University, B.A., 1971

Retired, Chief Executive Officer, Citibank, N.A.

External Directorships: XL Group - Chairman;

Promontory Financial Group -Vice Chairman.

Susan Leslie Ireland USA Franklin and Marshall College, B.A., 1981

Former Assistant Secretary for Intelligence and Analysis, Georgetown University, M.A., 1983

U.S. Department of Treasury


James S. Turley USA Rice University, B.A., 1977; Masters in Accounting, 1978

Former Chairman and CEO of Ernst & Young.

External Directorships: Emerson Electric Co;

Intrexon Corporation; Kohler Company (privately held);

Northrop Grumman Corporation,

Sita Capital (Investors Advisory Board).

The Citibank, N.A. board has established an Audit Committee for Citibank, N.A. comprising of three independent Directors.

On 25th April, 2017, Joan E. Spero has retired from the Board of Directors of Citibank, N.A. Susan Leslie Ireland has been appointed as a Director of

Citibank, N.A, effective from 2nd of October, 2017. There have been no other changes to CBNA's board of directors since the last disclosure statement dated

31 December, 2016.

Country of Residence

Auditors of Citigroup Inc. and Citibank, N.A. New Zealand Branch and Associated Banking Group

Name and address for Service of any auditor whose report is referred to in the Disclosure Statement

Citigroup Inc. KPMG LLP

Independent Registered Public Accountant Firm

345 Park Avenue

New York, New York 10154

KPMG

Level 38, Tower Three

International Towers Sydney

300 Barangaroo Avenue

Sydney NSW 2000 Australia

Transactions between Directors, New Zealand Chief Executive Officer and affiliates

Director policy on conflict of interest

Guarantee arrangements

CBNA New Zealand Branch does not have any guarantees over any material obligations as at 26th March, 2018.

Conditions of registration

2. That the Banking Group's insurance business is not greater than 1% of its total consolidated assets.

In determining the total amount of the Banking Group’s insurance business -

Citibank, N.A. New Zealand Branch and

Associated Banking Group

These Conditions of Registration apply on or after 1 January, 2018.

1. That the Banking Group does not conduct any non-financial activities that in aggregate are material relative to its total activities.

(b) if products or assets of which an insurance business is comprised also contain a non-insurance component, the whole of such products or assets must be

considered part of the insurance business.

For the purposes of this Condition of Registration, -

“insurance business” means the undertaking or assumption of liability as an insurer under a contract of insurance.

(a) if the business of an entity predominantly consists of insurance business and the entity is not a subsidiary of another entity in the Banking Group whose

business predominantly consists of insurance business, the amount of the insurance business to sum is the total consolidated assets of the group headed by the

entity; and

Conditions of registration for CBNA in New Zealand.

For the purposes of this Condition of Registration, the Banking Group’s insurance business is the sum of the following amounts for entities in the banking

group:

Directors must avoid circumstances in which their personal, professional or business interests conflict, or appear to conflict, with the interests of CBNA or its

customers.

Certain transactions involving loans, deposits and sales of commercial paper, certificates of deposit and other money market instruments and certain other

banking transactions occur between Citigroup Inc. and CBNA on the one hand and certain directors or executive officers of Citigroup Inc., CBNA and CBNA

New Zealand Branch, members of their immediate families or associates of the directors, the executive officers or their family members on the other. All such

transactions were made in the ordinary course of business on substantially the same terms, including interest rates and collateral, that prevailed at the time for

comparable transactions with other persons and did not involve more than the normal risk of collectability or present other unfavourable features.

The registration of CBNA in New Zealand is subject to the following conditions:

(a) all amounts must relate to on balance sheet items only, and must comply with generally accepted accounting practice; and

(b) if the entity conducts insurance business and its business does not predominantly consist of insurance business and the entity is not a subsidiary of another

entity in the Banking Group whose business predominantly consists of insurance business, the amount of the insurance business to sum is the total liabilities

relating to the entity’s insurance business plus the equity retained by the entity to meet the solvency or financial soundness needs of its insurance business.

In this Condition of Registration, the meaning of 'material' is based on generally accepted accounting practice.

“insurer” and “contract of insurance” have the same meaning as provided in sections 6 and 7 of the Insurance (Prudential Supervision) Act 2010.

3. That the business of the registered bank in New Zealand does not constitute a predominant proportion of the total business of the registered bank.

4. That no appointment to the position of the New Zealand chief executive officer of the registered bank shall be made unless:

(i) the Reserve Bank has been supplied with a copy of the curriculum vitae of the proposed appointee; and

(ii) the Reserve Bank has advised that it has no objections to that appointment.

5. That CBNA complies with the requirements imposed on it by the Office of the Comptroller of the Currency.

For the purposes of this Condition of Registration, the capital adequacy ratios -

(a) must be calculated as a percentage of the registered bank’s risk weighted assets; and

(b) are otherwise as administered by the Office of the Comptroller of the Currency.

In Conditions of Registration 9 to 11-

On and after 1 January

2015

Capital Adequacy Ratio

Tier 1 Capital

Total Capital

The Conditions of Registration were amended on 1 January, 2018. Conditions 9 to 11 were revised by the Reserve Bank, imposing restrictions on the share of

high loan-to-value ratio residential mortgage lending undertaken by registered banks, to help maintain financial stability.

7. That liabilities of the registered bank in New Zealand, net of amounts due to related parties (including amounts due to a subsidiary or affiliate of the

registered bank), do not exceed NZ$15 billion.

8. That retail deposits of the registered bank in New Zealand do not exceed NZ$200 million. For the purposes of this Condition of Registration, retail deposits

are defined as deposits by natural persons, excluding deposits with an outstanding balance which exceeds NZ$250,000.

6. That, with reference to the following table, each capital adequacy ratio of CBNA must be equal to or greater than the applicable minimum requirement.

Common Equity Tier 1 Capital

“banking group” means the New Zealand business of the registered bank and its subsidiaries as required to be reported in group financial statements for the

group’s New Zealand business under section 461B (2) of the Financial Markets Conduct Act 2013.

“generally accepted accounting practice” has the same meaning as in section 8 of the Financial Reporting Act 2013.

11. That the business of the registered bank in New Zealand must not make a residential mortgage loan unless the terms and conditions of the loan contract or

the terms and conditions for an associated mortgage require that a borrower obtain the registered bank’s agreement before the borrower can grant to another

person a charge over the residential property used as security for the loan.

10. That, for a loan-to-valuation measurement period, the total of the business of the registered bank in New Zealand’s qualifying new mortgage lending

amount in respect of non property-investment residential mortgage loans with a loan-to-valuation ratio of more than 80%, must not exceed 15% of the total of

the qualifying new mortgage lending amount in respect of non property-investment residential mortgage loans arising in the loan-to-valuation measurement

period.

“business of the registered bank in New Zealand” means the New Zealand business of the registered bank as defined in the requirement for financial

statements for New Zealand business in section 461B (1) of the Financial Markets Conduct Act 2013.

“loan-to-valuation ratio”, “non property-investment residential mortgage loans”, property-investment residential mortgage loans”, “qualifying new mortgage

lending amount in respect of property-investment residential mortgage loans”, “qualifying new mortgage lending amount in respect of non property-investment

residential mortgage loans”, and “residential mortgage loan” have the same meaning as in the Reserve Bank of New Zealand document entitled “Framework

for Restrictions on High-LVR Residential Mortgage Lending” (BS19) dated October 2016, and where the version of the Reserve Bank of New Zealand

document “Capital Adequacy Framework (Standardised Approach)” (BS2A) referred to in BS19 for the purpose of defining these terms is that dated

November, 2015.

"loan-to-valuation measurement period" means a period of six calendar months ending on the last day of the sixth calendar month, the first of which ends on

the last day of June, 2018.

“liabilities of the registered bank in New Zealand” means the liabilities that the registered bank would be required to report in financial statements for its New

Zealand business if section 461B(1) of the Financial Markets Conduct Act 2013 applied.

Minimum Requirement

4.5 percent

6 percent

8 percent

9. That, for a loan-to-valuation measurement period, the total of the business of the registered bank in New Zealand’s qualifying new mortgage lending amount

in respect of property-investment residential mortgage loans with a loan-to-valuation ratio of more than 65%, must not exceed 5% of the total of the qualifying

new mortgage lending amount in respect of property-investment residential mortgage loans arising in the loan-to-valuation measurement period.

In these Conditions of Registration -

Historical summary of Financial Statements


(Thousands of NZ Dollars) Year ended December 31,

2017 2016 2015 2014 2013

Interest Income 53,807 60,909 74,156 84,457 67,510

Interest Expense 25,548 27,243 41,089 44,524 32,883

Net Interest income 28,259 33,666 33,067 39,933 34,627

Net trading income 2,119 (722) 781 (8,753) (5,320)

Net fees income 14,747 12,274 13,308 13,541 13,757

Other operating income 665 1,963 (6) (16) (24)

Operating Expenses 20,664 20,134 19,290 15,710 23,138

Net Profit or (Loss) before taxation 25,126 27,047 27,860 28,995 19,902

Taxation 7,139 7,570 7,891 7,878 6,152

Net Profit after taxation 17,987 19,477 19,969 21,117 13,750

Dividend/Remittance to Head Office 19,400 19,900 20,663 13,691 3,632

Net Profit or (Loss) Retained (1,413) (423) (694) 7,426 10,118

Assets 2,044,918 2,065,376 1,974,218 1,980,111 2,190,662

Total Individually Impaired Assets - - - - -

Liabilities 1,851,645 1,870,819 1,779,064 1,784,580 2,003,043

Equity/Head Office Account 193,273 194,557 195,154 195,531 187,619

Claims of unsecured creditors of the Registered Bank on the assets of the Overseas Bank

The above legislation may affect all New Zealand liabilities.

Credit ratings

Rating Agency

Moody’s

Standard & Poor’s

Fitch


Rating scales are:

AAA/Aaa Superior. Extremely strong capacity to pay interest and repay principal in a timely manner.

AA/Aa Excellent. Very strong capacity to pay interest and repay principal in a timely manner.

A Good. Strong capacity to pay interest and repay principal in a timely manner.

BBB/Baa Adequate capacity to pay interest and repay principal in a timely manner.

BB/Ba May be adequate but judged to have speculative elements.

B Vulnerable. Assurance of interest and principal payments over any long period of time may be small.

CCC/Caa Extremely vulnerable. Speculative to a high degree.

No material qualifications attach to the obligations and the ratings have not been withdrawn.

A+ (stable)

The laws of the United States of America require that in the liquidation or other resolution of a failed U.S. insured depository institution, deposits in U.S.

offices and certain claims for administrative expenses and employee compensation are afforded a priority over other general unsecured claims, including

deposits in offices outside the U.S., non-deposit claims in all offices, and claims of a parent. Such priority creditors would include the Federal Deposit

Insurance Corporation (FDIC), which succeeds to the position of insured depositors. Subject to the application of New Zealand law, the local regulator may

seize assets of the New Zealand branch of CBNA and that action could impede the ability of the receiver to satisfy the preference to pay U.S. deposits.

The following historical summary data for CBNA New Zealand Branch and Associated Banking Group has been derived from audited financial statements

prepared on the basis of accounting principles generally accepted in New Zealand.

Standard & Poor's and Fitch may modify their ratings by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating

categories.

Note: Moody's applies numerical modifiers 1, 2, and 3 in each generic rating classification from Aa through B. 1 indicates that the obligation ranks in the

higher end of its generic rating category; 2 indicates a mid-range ranking; and 3 indicates a ranking in the lower end of that generic rating category.

Under the law of the United States of America, a bank which is a member of the Federal Reserve System, including CBNA, is not required to repay a deposit at

a branch outside the United States if the branch cannot repay the deposit due to an act of war, civil strife, or action taken by the government in the host country,

unless the bank has expressly agreed to do so in writing.

CBNA has the following long-term debt ratings which are applicable to the New Zealand Branch’s long-term senior unsecured obligations which are payable

in New Zealand in New Zealand dollars.

(if changed in the previous two years)

Friday, 16 December, 2016

Approval Date

A (watch positive)

A1 (stable)

Previous Rating

A+ (stable)

Current Rating

Not changed

Not changed

Standard & Poor’s, Moody's and Fitch have an implied rating equal to CBNA as CBNA New Zealand Branch is part of the same legal entity.

Insurance business and non-financial activities

CBNA does not conduct any insurance business or non-financial activities in New Zealand that are outside its Banking Group.

Financial statements

Profitability and size of Citibank, N.A.

2017 2016

Profitability

Net profit/(loss) after tax for the year ended 757,000 12,799,000

Net profit/(loss) after tax over the previous twelve months as a percentage of average total assets 0.05% 0.95%

Size (refer note 1)

Total assets 1,384,707,000 1,349,581,000

2.60% 3.83%

Asset quality (refer note 1 and 2)

Total impaired assets 7,945,000 10,476,000

0.57% 0.78%

Total individual credit impaired allowance - -

0.00% 0.00%

Total collective credit impairment allowance - -

0.00% 0.00%

Total individually impaired assets for CBNA are not included because such figures are not publicly available.

Percentage Change in total assets over the previous twelve months

CBNA New Zealand Branch and the Banking Group does not conduct any insurance business in New Zealand.

Any person, upon request and without charge, may obtain a copy of CBNA New Zealand Branch and the Banking Group's most recent Disclosure Statement,

which contains a copy of the most recent publicly available consolidated financial statements of CBNA (Citibank Call Report for the fiscal year ended

December 31, 2017 ("Citibank Call Report") and the CBNA audited financial statements for the fiscal year ended December 31, 2017 (“Citibank 2017

Financials”)), and the Citigroup Inc. Annual Report on Form 10-K for the fiscal year ended December 31, 2017 ("Citigroup Form 10-K”), immediately by

requesting a copy from CBNA’s New Zealand office in Auckland. The Citibank Call Report and the Citigroup Form 10-K are also available on the Bank's

website 'www.citi.co.nz'.

CBNA is an indirect wholly owned subsidiary of Citigroup Inc. The information relating to CBNA contained in the Bank’s General Disclosure Statement is

derived from, and is qualified in its entirety by reference to, the detailed information and consolidated financial statements included in the Citibank Call Report

and the Citibank 2017 Financials.

(Thousands of US Dollars)

Total individual credit impaired allowance as a percentage of total impaired assets

The Citibank Call Report is prepared in accordance with the regulatory instructions issued by the Federal Financial Institutions Examination Council

(“FFIEC”), as compared to the Citibank 2017 Financials and Citigroup Form 10-K which are prepared in accordance with U.S. GAAP and, with respect to the

Citigroup Form 10-K and Quarterly Reports on Form 10-Q, the requirements of the U.S. Securities and Exchange Commission. In 1997, the FFIEC adopted

U.S. GAAP as the reporting basis for the consolidated balance sheet, income statement and related schedules included in the Call Report. Despite the

adoption of U.S. GAAP as the reporting basis for the Citibank Call Report, the presentation of financial statements in the Citibank Call Report differs

significantly from the presentation of financial statements included in the Citibank 2017 Financials and Citigroup’s Form 10-K and Quarterly Reports on

Form 10-Q filed with the U.S. Securities and Exchange Commission, including without limitation the Citibank Call Report generally contains less disclosure

than audited financial statements prepared in accordance with U.S. GAAP.

Total collective credit impairment allowance as a percentage of total impaired assets

Impaired assets for CBNA consist of non-accrual loans, restructured loans, other non-accrual assets and other real estate owned. CBNA maintains an

allowance that is available to absorb all probable credit losses inherent in its portfolio. The allowance for loan and lease losses at 31 December, 2017 is

US$10,750 million (31 December, 2016: US$10,465 million).

Total impaired assets as a percentage of total assets

Note 2017 2016

$(000's) $(000's)

Interest income 3 53,807 60,909

Interest expense 3 25,548 27,243

Net interest income 28,259 33,666

Net trading income / (loss) 4 2,119 (722)

Net fees income 4 14,747 12,274

Other operating income 4 665 1,963

Total revenue 45,790 47,181

Operating expenses 5 20,664 20,134

Profit before income tax 25,126 27,047

Income tax expense 6 7,139 7,570

Profit for the year 17,987 19,477

Other comprehensive income

Available for sale reserve

Fair value gain / (loss) taken directly to equity (78) 10

Tax on movements and transfers 22 (3)

Other comprehensive income for the year, net of tax, that may be reclassified subsequently to profit (56) 7

Total comprehensive income for the year 17,931 19,484

The Statements of Comprehensive Income should be read in conjunction with the notes to the financial statements on the accompanying pages.


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2017

Banking Group

Note 2017 2016

$(000's) $(000's)

Capital

Citicorp Services Limited

Authorized, issued and paid-up capital

28,595 28,595

20 28,595 28,595

Head office account

CBNA New Zealand Branch

At the beginning of the year 33,484 33,665

Movement in share based payment reserve 185 (181)

At the end of the year 20 33,669 33,484

Available for sale reserve

At the beginning of the year 68 61

Other comprehensive income (56) 7

At the end of the year 20 12 68

Retained earnings

At the beginning of the year 132,410 132,833

Profit after tax 17,987 19,477

Profit remittance to head office (19,400) (19,900)

At the end of the year 20 130,997 132,410

Equity at the end of the year 20 193,273 194,557

Represented by:

Equity at the beginning of the year 194,557 195,154

Transactions with owners, recorded directly in equity

Profit remittance to head office (19,400) (19,900)

Movement in share based payment reserve 185 (181)

Total transactions with owners (19,215) (20,081)

Total comprehensive income for the year

Profit for the year 17,987 19,477

Other comprehensive income

Net change in fair value of available for sale assets to profit or loss on disposal (78) 10

Income tax on other comprehensive income 22 (3)

Total other comprehensive income (56) 7

Total comprehensive income for the year 17,931 19,484

Equity at the end of the year 193,273 194,557

The Statements of Changes in Equity should be read in conjunction with the notes to the financial statements on the accompanying pages.


25,000,000 (2016: 25,000,000) Ordinary Shares, fully paid

Banking Group


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Note 2017 2016

$(000's) $(000's)

Assets

Cash and cash equivalents 413,317 549,153

Due from related parties 16 (c) 199,524 171,824

Derivative financial assets 7 4,815 20,310

Current tax assets - 2,559

Available for sale assets 8 523,051 504,453

Loans and advances 895,622 810,805

Other assets 9 7,629 5,054

Deferred tax assets 6 453 474

Property plant and equipment 11 507 744

Total assets 2,044,918 2,065,376

Liabilities

Deposits from other banks 1,404 4,340

Due to related parties 16 (c) 910,368 1,014,815

Other deposits 918,704 839,617

Derivative financial liabilities 7 12,817 5,624

Current tax liabilities 555 -

Provisions 12 184 176

Other liabilities 13 7,613 6,247

Total liabilities 1,851,645 1,870,819

Equity

Issued and paid-up capital 20 28,595 28,595

Head office account 20 33,669 33,484

Available for sale reserve 20 12 68

Retained earnings 20 130,997 132,410

Total equity 193,273 194,557

Total liabilities and equity 2,044,918 2,065,376

Total interest earning and discount bearing assets 2,031,514 2,036,235

Total interest and discount bearing liabilities 1,824,584 1,853,337

The Statements of Financial Position should be read in conjunction with the notes to the financial statements on the accompanying pages.


CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Banking Group

AS AT 31 DECEMBER 2017

Note 2017 2016

$(000's) $(000's)

Cash flows from operating activities

Interest received 52,298 62,649

Interest paid (24,231) (27,905)

Net trading income / (loss) 24,885 (26,782)

Other income 14,080 13,250

Net increase in placements due from related companies (27,700) (90,857)

Net (increase) / decrease available for sale assets (18,753) 63,046

Net increase in loans and advances (84,817) (55,926)

Net (decrease) / increase in due to related parties (107,492) 347,792

Net increase / (decrease) in customer deposits 76,151 (243,466)

Income tax paid (4,069) (7,183)

Other operating expenses paid (20,101) (20,057)

Net cash from operating activities 15 (119,749) 14,561

Cash flows from investing activities

Payments to acquire property, plant and equipment (2) (5)

Net cash from investing activities (2) (5)

Cash flows from financing activities

Receipt of dividends 271 (192)

Payment of dividends (19,400) (19,900)

Net cash from financing activities (19,129) (20,092)

Net decrease in cash and cash equivalents (138,880) (5,536)

Cash and cash equivalents at the beginning of the year 546,929 552,465

Cash and cash equivalents at the end of the year 14 408,049 546,929

The Statements of Cash Flows should be read in conjunction with the notes to the financial statements on the accompanying pages.

CONSOLIDATED STATEMENT OF CASH FLOWS


Banking Group


1. SIGNIFICANT ACCOUNTING POLICIES

a) Statement of compliance

b) Basis of preparation

The amounts in the financial statements have been rounded to the nearest thousand dollars, unless otherwise stated.

c) Principles of aggregation and consolidation

d) Revenue recognition

i) Interest income and expense

ii) Fee and commission income

iii) Net trading income

iv) Other income

e) Operating lease payments and receipts

Income recognition policies for financial assets at fair value through profit and loss, available for sale assets and derivative financial instruments are described

in notes 1(k), 1(m), and 1(u) respectively.

The Branch has entered into operating leases for its premises. The total payments made under operating leases net of incentives received, if any, are

recognised in the Consolidated Statement of Comprehensive Income on a straight-line basis over the period of the lease. When an operating lease is terminated

before the lease period has expired, any payment required to be made to the lessor by way of penalty is recognised as an expense in the period in which

termination takes place. The current lease has a right of renewal at the termination of the lease.

The aggregated financial statements of the Banking Group include the financial statements of the Branch and Associated Banking Group which have been

accounted for using the aggregation of interest method as the Branch does not own the Associated Banking Group and therefore is not a legal group. All

significant transactions between the Branch and Associated Banking Group have been eliminated. Within the Banking Group, consolidation has been done

using the purchase method of consolidation. Control exists when the primary entity within the Banking Group is exposed, or has rights, to variable returns

from its involvement with the investee and has the ability to affect those returns through its power over the investee.

Net trading income comprises unrealised and realised gains and losses relating to derivative financial instruments.

Fees and commissions are generally recognised on an accrual basis when the service has been provided. Loan commitment fees for loans that are likely to be

drawn down are deferred (together with related direct costs) and recognised as an adjustment to the effective yield rate on the loan. Other service fees are

recognised based on the applicable service contracts, usually on a time-apportionate basis.

Interest income and expense are recognised in the Consolidated Statement of Comprehensive Income for all instruments measured at amortised cost using the

effective yield method. The effective yield method is a method of calculating the amortised cost of a financial asset and of allocating the interest income over

the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the

financial instrument or, when appropriate, a shorter period, to the net carrying amount of the financial asset or financial liability. When calculating the effective

yield rate, the Banking Group estimates cash flows considering all contractual terms of the financial instrument (for example, prepayment options) but does not

consider future credit losses. The calculation includes all fees between parties to the contract that are an integral part of the effective interest rate, transaction

costs and all other premiums or discounts.

The financial statements of controlled entities are included in the consolidated financial statements from the date that control commences until the date that

control ceases. Investments in subsidiaries are carried at their cost of acquisition in the Banking Group’s financial statements. Unrealised gains and losses and

inter-entity balances resulting from transactions with or between controlled entities are eliminated in full on consolidation.

The accounting policies set out below have been applied consistently to all periods presented in the consolidated financial statements. The accounting policies

have been applied consistently by each entity in the Banking Group.

The financial statements are presented in New Zealand dollars, which is the functional currency of the Banking Group.


NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION


These financial statements were authorised for issue by CBNA under power of attorney and by the board of Directors of Citicorp Services Limited and its

subsidiaries on this 26th day of March, 2018.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the

estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future

periods.

The preparation of a financial statements in conformity with New Zealand Accounting Standards requires management to make judgements, estimates and

assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Actual results may differ from these

estimates. Management believes that the critical accounting policies where management judgement is necessarily applied are those in relation to a) loans and

receivables (refer to the discussion on credit risk in note 2), b) impairment of financial assets (refer note 1 (n) and note 10), c) provisions and contingencies

(refer note 12 and note 19) and d) measurement of share based payments (refer note 1 (f) and note 17).

The financial statements are those of Citibank NA New Zealand Branch (the "Branch"), and those of the aggregated financial statements for the New Zealand

Branch and the Associated Banking Group (the "Banking Group").

The financial statements are prepared on the historical cost basis except that the following assets and liabilities are stated at their fair value: derivative financial

instruments and available for sale assets.

The ultimate holding company of the Banking Group is Citigroup Inc. ("Citigroup"), which is a global diversified financial services holding company whose

businesses provide a broad range of financial services to consumer and corporate customers.

The Banking Group’s financial statements have been prepared in accordance with the requirements of the Registered Bank Disclosure Statements (Overseas

Incorporated Registered Banks) Order 2014 (as amended), the Financial Markets Conduct Act 2013 ("FMCA 2013"), the Companies Act 1993, the Financial

Reporting Act 2013, and with New Zealand Generally Accepted Accounting Practice (“NZGAAP”). They comply with the New Zealand equivalents to

International Financial Reporting Standards (“NZ IFRS”) and other applicable Financial Reporting Standards, as appropriate for tier 1 for-profit entities. The

financial statements also comply with International Financial Reporting Standards ("IFRS").

1. SIGNIFICANT ACCOUNTING POLICIES (continued)

f) Citigroup equity-based compensation

g) Foreign currency transactions

h) Taxation

i) Due from other financial institutions

j) Financial assets

The Banking Group classifies its financial assets in the following categories:

- Loans and advances;

- Available for sale assets; and

- Derivative financial assets

Management determines the classification of financial assets at initial recognition.

k) Financial assets at fair value through profit or loss

l) Loans and advances

m) Available for sale assets

n) Impairment of financial assets

The fair values of quoted investments in active markets are based on current bid prices. If the market for a financial asset is not active (and for unlisted

securities), the Banking Group establishes fair value by using valuation techniques. These include the use of recent arm’s length transactions, discounted cash

flow analysis, or other valuation techniques commonly used by market participants.

Impaired assets consist of restructured assets, assets acquired through the enforcement of security and other impaired assets.

Certain employees of the Banking Group participate in equity-based compensation plans of Citigroup, the ultimate parent entity of the Banking Group. Under

these plans, Citigroup shares or the cash equivalent of shares are issued to employees as remuneration for past services and to retain employees.

Foreign currency transactions are translated into the functional currency at the rates of exchange ruling at the dates of the transactions. Amounts receivable

and payable in foreign currencies at balance date are translated at the rates of exchange ruling on that date. Exchange differences relating to amounts payable

and receivable in foreign currencies are brought to account as exchange gains or losses in the Consolidated Statement of Comprehensive Income in the

financial year in which the exchange rates change.

Income tax expense for the year consists of current and deferred tax. Income tax is recognised in profit or loss except to the extent that it relates to items

recognised directly in equity, in which case it is recognised in other comprehensive income.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially enacted at the reporting date, and any

adjustment to tax payable in respect of previous years.

Deferred tax is provided for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used

for taxation purposes. The following temporary differences are not provided for: the initial recognition of assets or liabilities that affect neither accounting nor

taxable profit, and differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. The amount of

deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or

substantively enacted at the reporting date.

The Banking Group assesses at each financial year end whether there is objective evidence that a financial asset or group of financial assets are impaired as a

result of one or more events that occurred after the initial recognition of the asset (a ‘loss event’) and that loss event (or events) has an impact on the estimated

future cash flows of the financial asset or group of financial assets that can be reliably estimated. The Banking Group first assesses whether objective evidence

of impairment exists individually for financial assets that are individually significant, and individually or collectively for financial assets that are not

individually significant. If the Banking Group determines that no objective evidence of impairment exists it includes the asset in a group of financial assets

with similar credit risk characteristics and collectively assesses them for impairment. Assets that are individually assessed for impairment and for which an

impairment loss is or continues to be recognised are not included in a collective assessment of impairment.

A past due asset is any credit exposure where a counterparty has failed to make a payment which is contractually due, and which is not an impaired asset. A 90

days past due asset is a past due asset which has not been operated by the counterparty within its key terms within the past 90 days.

Amounts due from other financial institutions are stated at the gross value of the outstanding balance. They are measured at amortised cost less impairment

losses.

Deferred tax relating to change in fair value of available for sale assets and cash flow hedges taken to other comprehensive income is also recognised in other

comprehensive income.

Available for sale assets are those intended to be held for an indefinite period of time, and may be sold in response to needs for liquidity or changes in interest

rates, exchange rates or equity prices. Purchases and sales of available for sale assets are recognised as at the trade-date – the date on which the Banking Group

commits to purchase or sell the asset. These financial assets are carried at fair value. Gains and losses arising from changes in the fair value of available for

sale assets are recognised directly in other comprehensive income, until the financial asset is derecognised or impaired at which time the cumulative gain or

loss previously recognised in other comprehensive income is recognised in profit or loss. Dividends on available for sale assets are recognised in profit or loss

when the Banking Group’s right to receive payment is declared.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised.

Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

A financial instrument is classified in this category if acquired principally for the purpose of trading, managing risk, or selling in the short term. Assets held in

this category represent bank securities, promissory notes and treasury notes purchased for sale in the day-to-day trading operations of the banking business.

They are carried at fair value based on quoted bid prices or broker/dealer quotations and are recorded as at the trade-date. All changes in fair value are

recognised within the Consolidated Statements of Comprehensive Income. Interest received from trading securities is included within interest income in the

Consolidated Statements of Comprehensive Income.

Loans and advances include loans and advances originated by the Banking Group, which are not intended to be sold in the short term and have not been

classified either as held for trading or designated at fair value. Loans and advances are recognised when cash is advanced to borrowers. They are measured at

amortised cost using the effective interest method, less impairment losses.





i) Assets carried at amortised cost

ii) Available for sale assets

o) Property, plant and equipment

i) Recognition and measurement

Items of property, plant and equipment are initially recorded at cost and depreciated as outlined below.

ii) Subsequent additional costs

iii) Disposal of assets

iv) Depreciation and amortisation

Installations 10 years

Furniture and fixtures 5-10 years

Computer technology 2-5 years

p) Deposits and amounts due to other financial institutions

q) Provisions

r) Employee entitlements provision

s) Superannuation

t) Payables

u) Derivative financial instruments

Costs incurred on property, plant and equipment subsequent to initial acquisition are capitalised when it is probable that future economic benefits, in excess of

the originally assessed performance of the asset, will flow to the Banking Group in future years. Where these costs represent separate components they are

accounted for as separate assets and are separately depreciated over their useful lives. Costs that do not meet the criteria for capitalisation are expensed as

incurred through the Consolidated Statements of Comprehensive Income.

A provision, other than in relation to impairment of financial assets, is recognised when there is a legal or constructive obligation as a result of a past event and

it is probable that a future sacrifice of economic benefits will be required to settle the obligation, the timing or amount of which is uncertain.

The recoverable amount of any equity instrument designated as available for sale is its fair value including direct and incremental transaction costs. The

recoverable amount of debt instruments and purchased loans remeasured to fair value is calculated as the present value of expected future cash flows

discounted at the current market rate of interest. Gains and losses arising from changes in fair value are included as a separate component of other

comprehensive income, within the available-for-sale reserve, until the sale of the financial assets occurs, at which time the cumulative gain or loss is

transferred to the Consolidated Statements of Comprehensive Income. Interest income is determined using the effective interest method. In the event of the

financial asset being impaired the cumulative gain or loss previously recognised in equity is recognised in the Consolidated Statements of Comprehensive

Income.

If there is objective evidence that an impairment loss on loans and advances carried at amortised cost has been incurred, the amount of the loss is measured as

the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been

incurred) discounted at the financial asset’s original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account

and the amount of the loss is recognised in profit or loss. If a loan has a variable interest rate, the discount rate for measuring any impairment loss is the current

effective interest rate determined under the contract.

The gain or loss on disposal of assets is calculated as the difference between the carrying amount of the asset at the time of disposal and the proceeds on

disposal, and is included within the Consolidated Statements of Comprehensive Income in the year of disposal.

The Branch contributes to a defined contribution plan called Citibank SuperLife provided by SuperLife Master Trust, where CBNA employees form a separate

group within the master trust. SuperLife is governed by trust deeds and is managed separate to the Banking Group. The assets and liabilities of this plan are

legally held in a separate trustee-administered fund and are calculated by assessing the fair value of plan assets and deducting the amount of future benefit that

employees have earned in return for their service in current and prior periods discounted to present value. However, the Banking Group in New Zealand has

no ongoing obligation in respect of liabilities arising under the scheme except for net contributions.

The Banking Group recognises contributions due in respect of the accounting period in the Consolidated Statements of Comprehensive Income. Any

contributions unpaid at the financial year end are included as a liability.

Payables include accrued expenses and interest payable which are brought to account at the gross value of the outstanding balance, which is expected to

approximate cost.

Assets are depreciated using the straight line method over their estimated useful lives. Assets are depreciated or amortised from the date of acquisition. The

useful lives of assets are as follows:




The provisions for employee entitlements to wages, salaries, bonuses, annual leave and sick leave represent present obligations resulting from employees’

services provided up to the reporting date, calculated at undiscounted amounts based on current wage and salary rates that the Banking Group expects to pay as

at reporting date including related on-costs.

Deposits and amounts due to other financial institutions are recognised initially at fair value plus transaction costs and subsequently at amortised cost using the

effective interest rate method.

The Banking Group is exposed to changes in interest rates and foreign exchange rates from its activities. The Banking Group offers futures, forwards, options

and swaps to enable customers to transfer, modify, or reduce their interest rate, foreign exchange and other market risks. The Banking Group also trades these

products on its own account and it enters into derivative and foreign exchange contracts, among other instruments, as an end-user in connection with its own

risk management activities of certain assets and liabilities such as loans and deposits. All derivatives that do not meet the hedging criteria under NZ IAS 39 are

classified as derivatives held for trading. Derivative financial instruments used for trading purposes are carried at fair value using bid/offer rates, broker/dealer

quotations, discounted cash flows or estimated fair values generated by option pricing models. Revaluation gains and losses on derivative and foreign

exchange contracts are reported gross as due to and from financial institutions, except when qualifying netting agreements are in place with the counterparties.

Interest payments and receipts under interest rate and cross currency swap contracts and realised gains and losses on forward rate agreements are recognised on

an effective yield basis in profit or loss.


v) Commitments to extend credit and letters of credit

w) Offsetting financial assets and financial liabilities

x) Statements of cash flows

y) Determination of fair value

z) New standards and interpretations not yet adopted

Classification and Measurement

Impairment of financial assets

Financial assets and financial liabilities are offset and the net amount reported in the Consolidated Statement of Financial Position when there is a legally

enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or realise the asset and settle the liability simultaneously.

• There will be no significant impact on the classification and measurement from failures of the business model or SPPI tests and the transitional adjustments

in relation to classification and measurement are therefore not expected to be significant.

• Available-for-sale debt instruments measured at FVOCI consist of government and corporate bonds that are held for an indefinite period of time as they may

be sold in response to needs for liquidity or changes in interest rates or exchange rates. These debt securities will be classified and measured as FVOCI.

Previous NZ IFRS 139 measurement categories will be replaced by: fair value through profit or loss (FVTPL), fair value through other comprehensive income

(FVOCI), and amortised cost. NZ IFRS 9 also allows irrevocable designation of financial instruments that qualify for amortised cost or FVOCI as FVTPL, if it

eliminates or significantly reduces an accounting mismatch.

The treatment of financial liabilities is largely the same as NZ IFRS 139, except for gains or losses arising from the Banking Group’s own credit risk on

liabilities designated at FVTPL, which would be presented in the Other Comprehensive Income (OCI) with no subsequent reclassification to the Statement of

Other Comprehensive Income. The Banking Group currently has no liabilities designated at FVTPL.

The expected impact of changes to classification and measurement from adoption of NZ IFRS 9 as at 1 January, 2018 is as follows:

• Held-for-trading financial assets will be classified and measured as FVTPL.

• Financial assets designated at fair value will continue to be classified as measured at FVTPL due to the business model assessment.

• Loans and advances currently classified and measured at amortised cost will continue to be measured and classified at amortised cost.

The new model will operate in three-stages:

• Stage 1 – From initial recognition until a significant increase in credit risk relative to initial recognition, a loss allowance is recognized equal to the credit

losses expected to result from defaults expected over the next 12 months. Interest is calculated based on the gross carrying amount of the asset.

• Stage 2 – Following a significant increase in credit risk relative to initial recognition, a loss allowance is recognized equal to the credit losses expected over

the remaining lifetime of the asset. Interest is calculated based on the gross carrying amount of the asset.

The Consolidated Statements of Cash Flows have been prepared on the basis of net cash flows of this Banking Group. The reason for this presentation is that

the business of banking produces cash receipts and payments for items in which their turnover is quick, the amounts are large and the maturities are short. The

reporting of gross turnover of these items would not assist in the understanding of the financial statements.

The following new standards and interpretations which may have an impact on the Consolidated Banking Group have been issued, but are not yet effective and

have not been early adopted by the Banking Group.

• Available-for-sale equity securities measured at FVOCI will be classified as FVTPL. The Banking Group has made an accounting policy choice not to

irrevocably to elect to classify and measure non-trading equity instruments at FVOCI as all amounts recognised in OCI can never be reclassified to profit or

loss. The fair value of these financial assets as at 1 January is $0.02 million, which is the same as the carrying value as at 31 December, 2017.

• NZ IFRS 9 largely retains the pre-existing requirements for classification and measurement of financial liabilities previously included in NZ IFRS 139.

Under NZ IFRS 9, a consistent impairment model will be applied to all financial assets measured at amortised cost, debt securities classified as FVOCI, and

off balance sheet loan commitments and financial guarantees which were previously provided for under NZ IFRS 137 Provisions, Contingent Liabilities and

Contingent Assets.

NZ IFRS 9 introduces an expected credit loss (ECL) impairment model that differs significantly from the incurred loss model under NZ IFRS 139 and is

expected to result in the earlier recognition of credit losses going forward.

ECL credit loss allowances will be measured in three-stage expected credit loss impairment model:

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the

measurement date in the principal or, in its absence, the most advantageous market to which the Banking Group has access at that date. The fair value of a

liability reflects its non-performance risk.

For fair value instruments and available for sale financial assets that are quoted in active markets, fair values are determined at the current quoted bid/offer

price. Where independent prices are not available, fair values may be determined using valuation techniques with reference to observable market data. These

include comparison to similar instruments where market observable prices exist, discounted cash flow analysis, option pricing models and other valuation

techniques commonly used by market participants.

These financial instruments attract credit risk, generate fees and generally do not involve cash payments other than in the event of default. They are recorded as

commitments at their face value. Fee income relating to commitments are deferred and amortised over the expected life of the facility as part of the effective

yield method.




• NZ IFRS 9 Financial Instruments: NZ IFRS 9 is effective from 1 January, 2018. It introduces a new model for classification and measurement of financial

assets and liabilities, a new forward-looking “expected loss” impairment model for debt instruments and a new approach to hedge accounting. It replaces the

existing guidance in NZ IFRS 139 – Financial Instruments: Recognition and Measurement.

The most significant change is to allowances for credit losses, which are expected to increase by $0.3 million, driven by the longer time horizon involved in

estimating expected loses compared to the NZ IFRS 139 “incurred loss” approach. This would decrease retained earnings, as at 1 January, 2018, by

approximately $0.2 million, on an after tax basis.

NZ IFRS 9 requires all financial assets other than equity instruments and derivatives to be assessed based on the Banking Group’s business model for

managing the assets and the contractual cash flow characteristics of the instruments (i.e. whether solely payments of principal and interest (SPPI)).


z) New standards and interpretations not yet adopted (continued)

Other financial assets will be subject to a simplified measurement approach.

Transition

The Banking Group has assessed the impact of this new standard to be not significant.

• Stage 3 – For financial assets considered credit-impaired, an allowance equal to the full lifetime expected credit losses is recognized. Interest revenue is

calculated based on the carrying amount of the asset, net of the loss allowance, rather than on the gross carrying amount.




The impairment and classification and measurement requirements of NZ IFRS 9 will be applied retrospectively by adjusting the Banking Group’s

Consolidated Statement of Financial Position at 1 January, 2018, with the difference from previous carrying amounts recognised in retained earnings. There is

no requirement to restate comparative periods.

• NZ IFRS 15 Revenue from Contracts with Customers establishes a comprehensive framework for determining whether, how much and when revenue is

recognised. It replaces existing revenue recognition guidance, including NZ IAS 18 Revenue and NZ IFRIC 13 Customer Loyalty Programmes . This new

standard is applicable to annual reporting periods beginning on or after 1 January, 2018.

The Banking Group will recognise revenue when it satisfies a performance obligation by transferring a promised good or service to a customer. A good or

service is transferred when (or as) the customer obtains control of that good or service.

Consistent with NZ IFRS 39, loans are written off when there is no realistic probability of recovery. Accordingly, the Banking Group’s policy on when

financial assets are written off will not change significantly.

Hedge accounting

The new hedge accounting requirements introduced in NZ IFRS 9 are intended to simplify hedge accounting by aligning the accounting with The Banking

Group’s risk management strategy, and to permit hedge accounting for a greater variety of hedging instruments and risks. The Banking Group does not

currently apply hedge accounting under NZ IFRS 139.

• NZ IFRS 16 Leases introduces a new, single, lessee accounting model that requires lessees to recognise assets and liabilities for all leases with terms over

12 months, unless the asset is of “low value”. A lessee must recognise a “right-of-use asset”, representing its right to use the underlying leased asset, and a

“lease liability”, representing its obligations for future lease payments. It will replace the existing standard NZ IAS 17 Leases . NZ IFRS 16 is effective from

annual reporting periods beginning on or after 1 January, 2019. This standard is not expected to have a material impact.

Stage 1 and Stage 2 credit loss allowances will effectively replace the NZ IFRS 139 collectively-assessed allowance for incurred but not identified losses,

while Stage 3 credit loss allowances will effectively replace the individually assessed allowances for impaired loans.

Recognition and measurement of impairment will be more forward looking than under NZ IFRS 139, and will include information about past events, current

conditions, reasonable and supportable forecasts of future events and economic conditions at the reporting date, and consider the time value of money.

Measurement of ECL will primarily be determined by a financial asset’s probability of default (PD), loss given default (LGD) and exposure at default (EAD)

where the cash shortfalls are discounted to reporting date. For financial assets in Stage 1, the Banking Group will utilise a 12-month PD whereas financial

assets in Stage 2 will utilise a lifetime PD. Credit impaired financial assets in Stage 3 will continue to leverage existing processes.

Corporate loan impairment allowances for will be determined at an individual loan level. Impairment allowances will be estimated utilising both Banking

Group level and portfolio level factors (where relevant).

ECL will be measured considering the maximum contractual period of exposure to credit risk, including possible drawdowns, and expected maturity, including

revolving credit facilities with no fixed maturity.

2. FINANCIAL RISK MANAGEMENT

The Group has exposure to the following material risks from the use of financial instruments:

• Credit risk

• Market risk

• Liquidity risk

• Operational risk

• Reputational risk

• Strategic risk

• Compliance risk

• Legal risk.

Risk Management Framework

• Risk management is integrated within the business plan and strategy;

• Risks and resulting returns are owned and managed by an accountable business unit;

• Risks are managed within a limit framework with risk limits endorsed by business management and approved by independent risk management;

• Risk management policies are clearly and formally documented;

• Risks are measured using defined methodologies, including stress testing and approved portfolio benchmarks; and

• Risks are comprehensively reported across the organisation.

Credit Risk

Market risk

Management of market risk

Traded market risk (Trading Book)

Credit risk is the risk of financial loss to the Banking Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations. For

risk management reporting purposes the Banking Group considers and consolidates all elements of credit risk exposure.




Credit exposure can be broker into direct, contingent and pre-settlement exposure. Credit exposure is also generated through settlement risk and clearing risk.

All exposures are monitored against approved credit limits or approved thresholds.

Pre-settlement exposure is measured based on the current market values, plus an allowance for the likely movement in market rates over the remaining term of

the contract. Counterparty limits or approved thresholds cover all trading activity.

The Banking Group has developed comprehensive credit policies and procedures with respect to recording, clearance and monitoring control processes, to

ensure that all customer transactions are promptly accounted for, accurate and that credit quality is closely monitored.

The Banking Group did not have traded market risk positions during 2017. Residual foreign currency balances within the entity are, however, considered as

traded market risk for regulatory capital purposes.

This note presents information about the Banking Group's exposure to each of these risks and the objectives, policies and processes for measuring and

managing risk. The management of capital is discussed in note 20.

The CBNA New Zealand Branch and the Banking Group’s Risk Management framework is consolidated within Citi’s Risk Management framework. The Citi

Risk Management Framework is grounded on the following principles which apply universally across all businesses and all risk types:

Market risks of the Banking Group are managed through Citigroup-wide standards and business policies and procedures. The policies define market risk limits

and triggers, risk limits approval processes, limits exceptions and breaches. The policies also define market risk limit monitoring and escalation of limits

excesses.

The level of price risk assumed by a business is based on its objectives and earnings, its capacity to manage risk and by the sophistication of the local market.

Limits are established for each major category of risk.

Market Risk Management (“MRM”) for New Zealand have implemented a market risk limit and trigger framework. In addition to adhering to market risk

limits and triggers, risk taking units are required to trade only within their permitted products list, approved by MRM. Market risk exposures against limits and

triggers are monitored daily and limits are reviewed at least annually by MRM. Any limit excess is escalated and actioned as specified per the Citigroup Mark-

to-Market Risk Policy. MRM and the applicable business management are responsible for agreeing on appropriate corrective actions, including a resolution

date. The methodologies used to measure market risk exposures are approved by Citigroup Risk Analytics.

Market risk is the risk to earnings or capital due to changes in market variables such as interest rates or foreign exchange rates.

All credit risk exposures are monitored daily against approved credit limits. The credit risk is managed and monitored within the Institutional Clients Group's

credit risk limit / approval framework.

The Citi Risk Management Framework establishes standards for the measurement, approval, reporting and limiting of risk; managing, evaluating, and

compensating the senior independent risk managers at the business level; approving business-level risk management policies; approving business risk-taking

authority through the allocation of limits and capital; and reviewing, on an ongoing basis continually, major risk exposures and concentrations across the

organisation. Risks are regularly reviewed with independent business-level risk managers and Citigroup senior business managers.

There is credit risk associated with the institutional activities in the Banking Group and its consolidated subsidiaries. Examples include secured financing

transactions, cash trades, placements in the interbank market, as well as holding of investment securities. Credit risk exposure is also generated through

daylight overdrafts and settlement risk.

2. FINANCIAL RISK MANAGEMENT (continued)

Management of market risk (continued)

Non-traded market risk (Banking Book)

Liquidity risk

Operational risk

Framework

The Banking Group’s approach to operational risk is defined in the Citi's Risk and Operational Risk Management Policy (“the Policy”).

the overall control environment; and

Reputational risk

• Create a framework for discussing operational risks and controls;

• Renew focus on the design and execution of operational controls;

A “Manager’s Control Assessment” (MCA) is used as the formal governance and reporting structure consistent with the requirements of the most recent

release of the COSO (Committee of Sponsoring Organizations of the Treadway Commission) 2013 Internal Control – Integrated Framework providing the

necessary support for overall internal control over financial reporting (ICFR). An Operational Risk Profile is prepared and utilised by the firm to monitor

material operational risks. MCA aims to:

The MCA standards for risk assessment and controls monitoring are applicable to all businesses and staff functions and establish a process whereby important

risks inherent in the activities of a business are identified and the effectiveness of the key controls over those risks are evaluated and monitored.

Reputational risk is the risk to current or anticipated earnings, capital or franchise or enterprise value arising from negative public opinion.




• Increase the capabilities for managers to obtain and consider multiple sources of control-related information in order to determine the adequacy of

• Help managers gain early line of sight into control issues and vulnerabilities, and emerging risks.

Reputational risk is managed centrally across all the legal entities operating under the Citi brand, hence, reputational risk is shared across the group. Being a

global bank, the local entities are also subject to contagion risk as the local operations may be impacted by Citi’s action offshore.

The objective of the Policy is to establish a consistent value-added framework for assessing and communicating operational risk and overall effectiveness of

the internal control environment across the Banking Group. Each major business segment must implement an operational risk process consistent with the

requirements of this Policy.

Activities excluded from the trading book as per the market risk policies are included within the banking book. This includes funding and liquidity

management positions which are marked-to-market or accrual positions.

Treasury manage non-traded interest rate risk for the local business units, by requiring all businesses to transfer price the interest rate risk in their accrual

portfolios to the Treasury unit.

For risk management purposes, fixed-rate items are repriced according to their residual terms. Floating rate items are repriced according to the residual term to

the next repricing date. Repricing assumptions are made for items that do not have a contractually defined repricing date. Those assumptions are reviewed and

approved on an annual basis by various functions, including the business, the management's Asset and Liablilty Committee ("ALCO") and the Market Risk

Manager for New Zealand.

Operational risk is the risk of loss resulting from inadequate or failed internal processes, people or systems, or from external events. It includes the reputation

and franchise risks associated with business practices or market conduct that the Banking Group may undertake with respect to activities in a fiduciary role, as

principal, as well as agent, or through a special-purpose entity.

Operational risk is inherent in the Banking Group’s global business activities and, as with other risk types, is managed through the Citi Operational Risk

Management Framework with a defined Three lines of defence model.

The Banking Group maintains a liquidity risk management framework designed with the objective of funding its obligations under a range of market

conditions, including stress scenarios.

MCA processes facilitate the Banking Group’s adherence to internal control over financial reporting, regulatory requirements, and other corporate initiatives,

including operational risk management and alignment of capital assessments with risk management objectives.

The operational risk standards facilitate the effective communication of operational risk within and across businesses. Information about the businesses’

operational risk, historical losses and the control environment is reported by each major business segment and functional area and summarised for senior

management and the Board.

Liquidity risk is the risk that the Banking Group will not be able to efficiently meet both expected and unexpected current and future cash flows.

• Second line is an oversight model consisting of Independent control functions and operational risk management; and

The entire process is monitored and periodically validated by in-country independent Compliance & Operational Risk Management teams and is subject to

audit by the Internal Audit. The results of MCA are included in periodic management reporting, including reporting to senior management and the Audit and

Risk Committees.

• The third line is Internal Audit which recommends enhancements continually and provides independent assessment and evaluation.

• The first line is recognised ownership and management of the risk by the businesses;

2. FINANCIAL RISK MANAGEMENT (continued)

Reputational risk (continued)

Strategic risk

Compliance risk

Legal risk

The Banking Group senior management is responsible for the development and execution of the strategy. At the business level, business heads are accountable

for the interpretation and execution of the firm-wide business plan, as it applies to their area, including decisions on new product entries.

Compliance risk is the risk to current or anticipated earnings or capital arising from violations of, or non-conformance with, applicable laws, rules, regulations,

prescribed practices, Citi's internal policies and procedures, or other relevant standards of conduct.

Strategic risk is risk to current or anticipated earnings, capital, or franchise or enterprise value arising from adverse business decisions, poor implementation of

business decisions, or lack of responsiveness to changes in the banking industry and operating environment.




The management of compliance risk adheres to Citi’s Compliance Risk Management Policy.

Legal risk includes the risk from uncertainty due to legal or regulatory actions, proceedings or investigations, or uncertainty in the applicability or interpretation

of contracts, laws or regulations.

In order to mitigate legal risk, the legal function provides or procures legal advice and counsel to facilitate adherence with laws and regulations and facilitate

Citigroup’s business activities. In addition, the legal function seeks to protect Citigroup’s interests by resolving, or vigorously defending Citigroup against

litigation and enforcement actions. This is led by the general counsel, who is supported by legal counsel for all Citigroup New Zealand products. Country

management, and regional general counsel are kept informed of significant developments in those matters through both formal channels and also through

informal interactions.

The management of the strategic risk rests upon foundational elements such as clear articulation of the firms strategy; defined financial and operating targets;

regular updates to senior management and the Board on performance including financial and operating targets, current and potential macro-economic events,

the strength of capital and liquidity positions, staffing levels, stress testing results, market growth rates and peer analysis; and management scorecards.

Citigroup has a multi-dimensional approach to the management of reputational risk, which is proactive, preventative and reactive based on Citi’s three lines of

defence model.

2017 2016

3. INTEREST $(000's) $(000's)

Interest income from:

Cash and demand deposits with central banks 9,841 12,316

Loans and advances to customers 26,089 26,399

Available for sale securities 11,255 17,091

Loans and advances - head office (including other branches) 5,832 3,908

Loans and advances - other related parties 790 1,195

53,807 60,909

Interest Expense from:

Deposits from other banks 542 1,058


Head office (including other branches) 13,534 7,704

Other related parties 1,410 1,763

25,548 27,243

Net interest income 28,259 33,666

4. OTHER INCOME

2017 2016

Net trading income / (loss) $(000's) $(000's)

Related parties

Interest rate derivatives (15,099) (19,178)

Third parties

Net foreign exchange 17,214 18,450

Securities 4 6

2,119 (722)

Fees

Lending and credit facility related 4,262 4,106

Fiduciary activities 3,259 2,748

Other fee income 7,226 5,420

Net fee income 14,747 12,274

Other operating income 665 1,963

17,531 13,515

5. OPERATING EXPENSES

2017 2016

Auditor's remuneration $(000's) $(000's)

Audit services 169 162

Other assurance services 15 12

184 174

Staff Costs

Salaries and other staff expenses 6,617 6,400

Defined contribution superannuation expenses 487 494

Share based payments 144 162

Other fees paid 262 175

7,510 7,231

Depreciation

Installations 163 163

Furniture and equipment 46 40

Computer technology 30 32

239 235

Other

Operating lease - premises rent expense 427 364

Management fees paid - head office (including other branches) 2,881 3,542

Management fees paid - other related parties 5,025 4,582

Other 4,398 4,006

12,731 12,494

Total operating expenses 20,664 20,134

Banking Group

Banking Group

Banking Group




6. TAXATION 2017 2016

$(000's) $(000's)

(i) Income tax expense

Current year tax expense

Current year 7,131 7,476

Prior year adjustment 51 (46)

Deferred tax expense

Origination / reversal of deferred tax (43) 140

7,139 7,570

(ii) Reconciliation between tax expense and pre tax profit

Profit before tax 25,126 27,047

Tax at 28% 7,035 7,573

Increase in income tax expense due to

Non-deductible expenses 51 42

Change in fair value of share based payments 2 1

Under / (over) provision in prior year 51 (46)

Income tax expense 7,139 7,570

(iii) Income tax recognised directly in equity

Available for sale reserve 5 27

Share based payments 86 87

91 114

(iv) Tax assets and tax liabilities

Details of recognised deferred tax assets

Property plant and equipment 56 45

Share based payments (16) 5

Provisions 361 375

Other 52 49

453 474

(v) Movement in deferred tax

Opening balance as at 1st January 474 606

Recognised in income 2 (132)

Recognised in equity (23) -

Closing balance 453 474

7. DERIVATIVE FINANCIAL INSTRUMENTS

2017 2016

Derivative assets $(000's) $(000's)

Related parties

Interest rate

Trading derivatives 3,081 5,408

Foreign exchange


4,815 20,310

Derivative liabilities

Related parties

Interest rate


Foreign exchange

Trading derivatives 10,260 703

12,817 5,624

8. AVAILABLE FOR SALE ASSETS

Government bonds 103,772 140,216

Certificates of deposit 419,279 364,237

523,051 504,453

Banking Group

Banking Group

Refer to note 31 for the imputation credits available to the shareholders of CBNA New Zealand Branch and the Banking Group through Citicorp Services

Limited and Citibank Nominees (New Zealand) Limited.




2017 2016

$(000's) $(000's)

9. OTHER ASSETS

Accrued interest - head office (including other branches) 271 252

Accrued interest - other related parties 14 11

Accrued interest - third parties 3,926 2,435

Other receivables - head office (including other branches) 2,160 1,761

Other receivables - other related parties 1,201 321

Other receivables - third parties 57 274

7,629 5,054

10. PAST DUE ASSETS

11. PROPERTY PLANT AND EQUIPMENT 2017 2016

$(000's) $(000's)

Installations

Cost

At beginning of period 1,373 1,371

Additions 1 2

Disposals - -

At end of period 1,374 1,373

Accumulated depreciation

At beginning of period 856 693

Depreciation expense 163 163

Reversal on disposal - -

At end of period 1,019 856

355 517

Furniture / equipment

Cost


Additions 1 3

Disposals - (24)

At end of period 410 409



Depreciation 46 40

Reversal on disposal - (24)


111 156

Computer hardware

Cost


Additions - -

Disposals (376) (427)




Depreciation 30 32

Reversal on disposal (376) (427)


41 71

Closing net book value 507 744

12. PROVISIONS

2017 2016

Restoration obligation - operating lease (note 19) $(000's) $(000's)

Carrying amount at the beginning of the year 176 176

Movement during the year 8 -

Carrying amount at the end of the year 184 176

Banking Group



CBNA New Zealand Branch and the Banking Group have no past due assets, impaired assets, restructured assets, assets (including real estate) acquired

through the enforcement of security or other assets under administration and therefore there are no specific provisions as at 31 December, 2017 (31 December,

2016: Nil).

Banking Group

Banking Group


2017 2016

13. OTHER LIABILITIES $(000's) $(000's)

Accrued interest - head office (including other branches) 1,706 522

Accrued interest - other related parties 114 84

Accrued Interest - third parties 763 660

Fees received in advance - third parties 348 319

Employee entitlements 1,426 1,690

Other payables - head office (including other branches) 221 363

Other payables - other related parties 57 995

Other payables - third parties 2,978 1,614

7,613 6,247

14. CASH AND CASH EQUIVALENTS

2017 2016

$(000's) $(000's)

Cash and demand deposits with central banks 401,436 531,004

Loans and advances to financial institutions at call 344 42

Due from related parties 11,537 18,107

Deposits from other banks - (2,224)

Due to related parties* (5,268) -

Cash and cash equivalents in the Consolidated Statement of Cash Flows 408,049 546,929

2017 2016

15. STATEMENT OF CASH FLOWS RECONCILIATION TO PROFIT $(000's) $(000's)

Reconciliation of net profit after tax to net cash flows from operating activities:

Net profit after tax 17,987 19,477

Adjustments for:

Depreciation 239 235

Movements in operating assets less liabilities (162,611) 20,589

Increase / (decrease) in accrual of interest expenses 1,317 (662)

Decrease in accrual of other expenses/income (1,045) (882)

Revaluations of financial assets and liabilities 22,766 (26,060)

Movement in tax provision 3,070 387

Movement in accrual provision 8 -

(Increase) / decrease in accrual of interest income (1,509) 1,740

Decrease / (increase) in accrual of fees and commissions 29 (263)

Net cash flows from operating activities (119,749) 14,561

16. RELATED PARTY TRANSACTIONS

(a) Ultimate holding company

Members of Citibank, N.A. New Zealand Branch and Associated Banking Group

CBNA New Zealand Branch Branch of CBNA

Citicorp Services Limited Locally incorporated wholly-owned subsidiary of Citibank Overseas Investment Corporation

Citibank Nominees (New Zealand) Limited Locally incorporated wholly-owned subsidiary of Citicorp Services Limited

Banking Group

Banking Group

Banking Group

Cash and cash equivalents include cash on hand, deposits held overnight or on call with financial institutions, nostro accounts and other short term highly

liquid assets which are subject to insignificant risk of change in their fair value and are used by the Banking Group in the management of its short term

commitments.

* This represents bank overdrafts repayable on demand to other banks. It is presented on the Statement of Financial Position within "Due to related parties".

The ultimate parent of CBNA New Zealand Branch and the Banking Group is Citigroup. These financial statements reflect only the operations of the Banking

Group. The financial statements of Citigroup should be read in conjunction with these financial statements.




16. RELATED PARTY TRANSACTIONS (continued)

(b) Transactions

Interest received and paid to related parties is disclosed in note 3.

Management fees are disclosed in note 5.

(c) Balances

2017 2016

Assets $(000's) $(000's)

Cash balances - head office (including other branches) 11,491 16,062

Cash balances - other related parties 46 2,045

Current accounts - head office (including other branches) 49,010 2,955

Current accounts - other related parties 514 5,869

Placements - head office (including other branches) 150,000 163,000

Due from related parties 211,061 189,931

Derivative financial assets - on balance sheet 4,815 20,310

Other assets - head office (including other branches) 2,431 2,013

Other assets - other related parties 1,215 332

Other related parties assets 8,461 22,655

Liabilities

Current accounts - head office (including other branches) 40,594 72,011

Current accounts - other related parties 86,691 65,607

Deposits - head office (including other branches) 783,083 877,197

Due to related parties 910,368 1,014,815

Derivative financial liabilities - on balance sheet 12,817 5,624

Other liabilities - head office (including other branches) 1,927 885

Other liabilities - other related parties 171 1,079

Other related parties liabilities 14,915 7,588

Derivative notional amounts

Interest rate awaps

- Head office (including other branches) 80,000 180,000

Foreign exchange forwards

- Head office (including other branches) 721,144 718,147

(d) Compensation of key management personnel of the New Zealand Banking Group

2017 2016

$(000's) $(000's)

Short term employee benefits 2,423 2,438

Post employment benefits 207 195

Equity compensation benefits 44 112

2,674 2,745

(e) Loans to key management personnel of the New Zealand Banking Group

There are no outstanding loans to key management personnel at 31 December, 2017 (2016: Nil).

Banking Group

All Citigroup entities within New Zealand are grouped for tax reporting purposes. This group includes the Branch and the Associated Banking Group. There

were no outstanding balances at balance date.

Banking Group

All transactions with related parties are at commercial arms length terms and rates. These are conducted predominantly with other CBNA branches and in the

case of the Branch, the Banking Group as well. Outstanding related party balances are not secured.

Management fees are paid to Singapore, Penang, Manila and Sydney for computer system usage and processing charges for back office and middle office

functions.




Cash balances due to / from related parties are disclosed in note 14.

Key management personnel compensation represents compensation paid or payable to the Directors and specified employees of the New Zealand Banking

Group for their services to the Banking Group.

Total income payable or otherwise made available to all key

management personnel of the NZ Banking Group

17. SHARE BASED PAYMENTS

Stock award programme

Information with respect to current year stock awards is as follows: 2017 2016

Shares awarded - 1,706.93

58.83 37.05

$(000's) $(000's)

Expense arising from share plans booked in the Consolidated Statement of Comprehensive Income 411 70

Balance of liability account 358 580

18. FIDUCIARY ACTIVITIES

19. CONTINGENT LIABILITIES AND COMMITMENTS

Specific commitments and contingent liabilities existing at period end are: 2017 2016

$(000's) $(000's)

Operating lease commitments:

Due within 1 year 357 293

Due between 1 and 5 years 687 -

1,044 293

Guarantees, letters of credit and undrawn loans 551,264 477,725

Foreign exchange forwards (notional amounts) 721,144 718,147

Interest rate swaps (notional amounts) 80,000 180,000

Banking Group

Banking Group

Weighted average fair market value per share (US $)

The Banking Group participates in CAP and awards shares of Citigroup common stock in the form of restricted or deferred cash stock units to participating

employees. CAP awards generally vest in equal annual instalments over four years.

The Branch provides nominee and custodial services on behalf of customers. At balance date, the Branch had securities registered in its name of $12,220

million which were held under nominee arrangements on behalf of its customers (December 2016: $9,280 million). The provision of such services do not

adversely affect the Banking Group.




Normal business activity incurs a variety of outstanding commitments and contingent liabilities such as commitments to extend credit, forward foreign

exchange contracts, and futures contracts. The Directors do not anticipate any material loss occurring as a result of these transactions and consequently no

provisions are included in the financial statements in respect of these matters. For operating lease, the balance of restoration obligation provision is disclosed

in note 12.

20. CAPITAL AND RESERVES

The process for managing capital:

2017 2016

$(000's) $(000's)

Paid-up capital 28,595 28,595

Head office account 33,669 33,484

Available for sale reserve 12 68

Retained earnings 130,997 132,410

193,273 194,557

Banking Group

- To ensure that capital is maintained at a level that meets thin capitalisation rules and to support the case for any capital surplus repatriation back to new york;

and

- To ensure sufficient liquidity, limits and ratios are in place to support any asset growth.

CBNA New Zealand Branch - the capital contribution from head office is unsecured and interest free and is repayable at the discretion of the branch and

subordinate to all other debts. The head office account balances have changed due to the recognition of amounts in relation to share based payments/share

options under NZ IFRS 2 Share Based Payments.

Citicorp Services Limited - There was no movement in the issued and paid up capital during the period. Shares have no par value and carry equal voting rights

and share equally in any surplus on the winding up of the Banking Group.

A two year forward capital plan is produced on an annual basis by corporate treasury. Through this process a historical and forecast trend analysis of the

statement of financial position including capital is performed. The ALCO approves the annual capital plan. There are no local minimum regulatory capital

requirements for CBNA New Zealand Branch as a result of its branch status. Capital levels are only monitored for thin capitalisation adequacy which is

calculated on a consolidated basis for all Citi entities in New Zealand. Actual capital levels versus risk weighted assets for thin capitalisation purposes are

monitored on a quarterly basis (and more frequently depending on the situation) throughout the year by financial control, risk management, tax and corporate

treasury and any issues are reported to ALCO. If additional capital is required, a formal request to new york corporate treasury is made after ALCO and

requisite local and regional management approvals are obtained. If there is capital excess to requirements, a capital repatriation must first be approved by local

ALCO prior to the repatriation occurring. Local corporate treasury manage the settlement process for capital injections and repatriations.

The objectives of this capital management plan are:



The major business is conducted in CBNA with no significant activity carried out in the Banking Group. The capital management plan is therefore prepared on

a consolidated level covering both the Branch and Banking Group.


CBNA New Zealand Branch, as a full branch of CBNA has a banking license but is not subject to any minimum capital requirements in New Zealand due to

its branch status, other than the requirement to comply with thin capitalisation rules. The compliance with the minimum capital adequacy requirements is

administered at the US parent entity level.

The equity comprises banking group share capital, branch equity in the form of the head office account, available for sale reserves and retained earnings.

- To ensure that the Banking Group maintains an appropriate level of capital commensurate to its risks and to support new business initiatives and growth;

The key risks to the businesses in the Banking Group which are continuously monitored are liquidity risk and thin capitalisation risk. liquidity risk and the

process of its management has been explained in note 2 of these financial statements.Thin capitalisation risk is the risk that interest deductions could be denied

for tax purposes.

The thin capitalisation rules effectively require the Banking Group to hold a combination of share capital and branch equity in the form of the head office

account and retained earnings amounting to not less than 6% of the amount of risk weighted exposures of the Banking Group calculated pursuant to the capital

adequacy framework prescribed by the Reserve Bank of New Zealand. Risk weighted exposures comprises the sum of a) risk-weighted on-balance sheet credit

exposures b) risk-weighted off-balance sheet credit exposures c) credit equivalent amounts for derivatives d) 12.5 × total capital requirement for operational

risk and e) 12.5 × total capital charge for market risk exposure.

21. CREDIT RISK RATING

Description

Superior. Extremely strong capacity to pay interest and repay principal in a timely manner. 1

2+

Excellent. Very strong capacity to pay interest and repay principal in a timely manner. 2

2-

3+

Good. Strong capacity to pay interest and repay principal in a timely manner. 3

3-

4+

Adequate capacity to pay interest and repay principal in a timely manner. 4

4-

5+

May be adequate but judged to have speculative elements. 5

5-

6+

6

6-

7+

7

Extremely vulnerable. Speculative to a high degree. 7-

8

9

10

Distribution of risk ratings:

1 2+ to 2- 3+ to 3- 4+ to 4- 5+ to 5- 6+ to 10 Total

$(000's) $(000's) $(000's) $(000's) $(000's) $(000's) $(000's)

As at 31 December, 2017

Cash and cash equivalents 401,437 11,537 122 221 - - 413,317

Due from related parties - 199,484 37 - 3 - 199,524

Derivative financial assets - 4,815 - - - - 4,815

Available for sale assets - 103,772 419,279 - - - 523,051

Loans and advances - 105,026 608,824 135,662 45,908 202 895,622

Other financial assets 58 1,861 1,634 345 312 1 4,211

401,495 426,495 1,029,896 136,228 46,223 203 2,040,540

1 2+ to 2- 3+ to 3- 4+ to 4- 5+ to 5- 6+ to 10 Total

$(000's) $(000's) $(000's) $(000's) $(000's) $(000's) $(000's)


Cash and cash equivalents 531,003 17,701 26 394 29 - 549,153

Due from related parties - 165,906 5,891 27 - - 171,824

Derivative financial assets - 20,310 - - - - 20,310

Available for sale assets - 140,216 364,237 - - - 504,453

Loans and advances - 95,821 528,202 136,961 49,779 42 810,805

Other financial assets 51 681 1,530 168 268 - 2,698

531,054 440,635 899,886 137,550 50,076 42 2,059,243

Risk Ratings enable the Banking Group to describe and compare all Citigroup credit exposures regardless of the nature, type or location of the credit facility.

Risk ratings are assigned on a scale of 1 to 10, with 1 being the highest quality risk and 10 being the lowest. A sub-grade is used to indicate a finer degree of

potential risk.

Risk Rating

Risk Rating

Vulnerable. Assurance of interest and principal payments over any long period of time may be

small.



Citigroup Risk Rating

A risk rating is the numerical proxy for the 12 month risk of default on long term (over 1 year) senior unsecured debt in local currency.


22. INTEREST RATE RISK REPRICING SCHEDULE

The contractual repricing or maturity periods of financial instruments are as follows:

More than Not Interest

0-3 mths 3-6 mths 6-12 mths 1-2 years 2 years Bearing Total

As at 31 December, 2017 $(000's) $(000's) $(000's) $(000's) $(000's) $(000's) $(000's)

Cash and cash equivalents 413,317 - - - - - 413,317

Due from related parties 199,524 - - - - - 199,524

Available for sale assets 523,051 - - - - - 523,051

Loans and advances 888,623 6,999 - - - - 895,622

2,024,515 6,999 - - - - 2,031,514

Deposits from other banks 1,390 - - - - 14 1,404

Due to related parties 910,365 - - - - 3 910,368

Other deposits 912,828 - - - - 5,876 918,704

1,824,583 - - - - 5,893 1,830,476

Foreign exchange contracts - receive 719,115 - - - - - 719,115

Foreign exchange contracts - (pay) (721,144) - - - - - (721,144)

Interest rate swaps - receive 40,000 - - 40,000 - - 80,000

Interest rate swaps - (pay) (40,000) - - (40,000) - - (80,000)

Off balance sheet (2,029) - - - - - (2,029)

More than Not Interest

0-3 mths 3-6 mths 6-12 mths 1-2 years 2 years Bearing Total


Cash and cash equivalents 549,153 - - - - - 549,153

Due from related parties 171,824 - - - - - 171,824

Available for sale assets 364,237 140,216 - - - - 504,453

Loans and advances 428,305 382,500 - - - - 810,805

1,513,519 522,716 - - - - 2,036,235

Deposits from other banks 4,340 - - - - - 4,340

Due to related parties 1,004,179 - 10,000 - - 636 1,014,815

Other deposits 834,818 - - - - 4,799 839,617

1,843,337 - 10,000 - - 5,435 1,858,772

Foreign exchange contracts - receive 716,596 - - - - - 716,596

Foreign exchange contracts - (pay) (718,147) - - - - - (718,147)

Interest rate swaps - receive 90,000 50,000 - - 40,000 - 180,000

Interest rate swaps - (pay) (90,000) (40,000) (10,000) - (40,000) - (180,000)

Off balance sheet (1,551) 10,000 (10,000) - - - (1,551)




23. LIQUIDITY RISK - MATURITY PROFILE

Gross

a) The contractual maturity periods of financial instruments are as follows: nominal

More than inflow/ Carrying

On Demand 0-12 mths 1-2 years 2-5 years 5 years (outflow) Amount


Assets

Cash and cash equivalents 413,317 - - - - 413,317 413,317

Due from related parties 199,524 - - - - 199,524 199,524

Available for sale assets - 419,255 103,796 - - 523,051 523,051

Loans and advances 6,500 531,319 46,652 313,504 - 897,975 895,622

Other financial assets 196 4,015 - - - 4,211 4,211

619,537 954,589 150,448 313,504 - 2,038,078 2,035,725

Liabilities

Deposits from other banks 1,404 - - - - 1,404 1,404

Due to related parties 127,285 474,727 199,897 121,450 - 923,359 910,368

Other deposits 817,904 100,811 - - - 918,715 918,704

Other financial liabilities - 2,931 - - - 2,931 2,931

946,593 578,469 199,897 121,450 - 1,846,409 1,833,407

Gross

nominal

More than inflow/ Carrying

As at 31 December, 2016 On Demand 0-12 mths 1-2 years 2-5 years 5 years (outflow) Amount

$(000's) $(000's) $(000's) $(000's) $(000's) $(000's) $(000's)

Assets

Cash and cash equivalents 549,153 - - - - 549,153 549,153

Due from related parties 171,824 - - - - 171,824 171,824

Available for sale assets - 504,453 - - - 504,453 504,453

Loans and advances 21,950 158,754 387,534 182,152 66,975 817,365 810,805

Other financial assets 147 2,551 - - - 2,698 2,698

743,074 665,758 387,534 182,152 66,975 2,045,493 2,038,933

Liabilities

Deposits from other banks 4,340 - - - - 4,340 4,340

Due to related parties 262,664 561,645 - 198,161 - 1,022,470 1,014,815

Other deposits 830,017 9,608 - - - 839,625 839,617

Other financial liabilities - 1,585 - - - 1,585 1,585

1,097,021 572,838 - 198,161 - 1,868,020 1,860,357




23. LIQUIDITY RISK - MATURITY PROFILE (continued)

b) Liquidity risk management

The expected maturity periods of financial instruments are as follows:

More than

On Demand 0-12 mths 1-2 years 2 years Total

$(000's) $(000's) $(000's) $(000's) $(000's)


Assets

Cash and cash equivalents 412,973 - - 344 413,317

Due from related parties 199,524 - - - 199,524

Available for sale assets - - - 523,051 523,051

Loans and advances - - - 895,622 895,622

Other financial assets 285 - - 3,926 4,211

612,782 - - 1,422,943 2,035,725

Liabilities

Deposits from other banks 33 376 - 995 1,404

Due to related parties 127,285 468,069 194,253 120,761 910,368

Other deposits 21,367 246,104 - 651,233 918,704

Other financial liabilities 26 2,118 - 787 2,931

148,711 716,667 194,253 773,776 1,833,407

More than

On Demand 0-12 mths 1-2 years 2 years Total

$(000's) $(000's) $(000's) $(000's) $(000's)


Assets

Cash and cash equivalents 549,111 - - 42 549,153

Due from related parties 171,824 - - - 171,824

Available for sale assets - - - 504,453 504,453

Loans and advances - - - 810,805 810,805

Other financial assets 263 - - 2,435 2,698

721,198 - - 1,317,735 2,038,933

Liabilities

Deposits from other banks 223 889 - 3,228 4,340

Due to related parties 262,664 553,990 - 198,161 1,014,815

Other deposits 43,186 171,994 - 624,437 839,617

Other financial liabilities 50 807 - 728 1,585

306,123 727,680 - 826,554 1,860,357

Liquidity risk is managed on the basis of expected maturity dates for certain products (see below) and is based on a business-as-usual view of the Banking

Group's funding requirements.

The expected maturity periods of financial instruments are based on the carrying value in the Consolidated Statement of Financial Position.

b) Corporate and other deposits. Non-volatile balances are reported in the >2 years bucket and volatile balances in the up to three months bucket. The

methodology for calculating the volatile and non-volatile balances is based on an analysis of 2.36 standard deviations of the previous twelve months' balances

and the resulting percentages are applied to the Consolidated Statement of Financial Position.

a) Long-term debt which is managed on a contractual maturity basis; and

It is assumed that third party assets will roll over as management is not expecting any reduction in the Consolidated Financial Position and are therefore shown

in the > 2 years category. The only exception is cash with central banks which is treated on a contractual maturity basis.

Third party liabilities are split into two main categories:




All related party assets and liabilities are managed on a contractual maturity basis.

24. FOREIGN CURRENCY RISK 2017 2016

$(000's) $(000's)

The receivable / (payable) net open position in each currency is

AUD 795 (145)

CAD 203 103

CHF 64 125

EUR 10 291

GBP 150 103

HKD 43 30

JPY 39 11

SEK 14 13

SGD 7 9

USD (231) 429

1,094 969

25. FAIR VALUE

Carrying Fair Carrying Fair

Fair value of financial instruments Value Value Value Value

$(000's) $(000's) $(000's) $(000's)

Assets

Cash and cash equivalents 413,317 413,317 549,153 549,153

Due from related parties 199,524 199,524 171,824 171,824

Derivative financial assets 4,815 4,815 20,310 20,310

Available for sale assets 523,051 523,051 504,453 504,453

Loans and advances 895,622 895,622 810,805 810,805

Other financial assets 4,211 4,211 2,698 2,698

Total assets 2,040,540 2,040,540 2,059,243 2,059,243

Liabilities

Deposits from other banks 1,404 1,404 4,340 4,340

Due to related parties 910,368 905,469 1,014,815 1,006,414

Other deposits 918,704 918,704 839,617 839,617

Derivative financial liabilities 12,817 12,817 5,624 5,624

Other financial liabilities 2,931 2,931 1,585 1,585

Total liabilities 1,846,224 1,841,325 1,865,981 1,857,580

For financial instruments not carried at fair value in the balance sheet, fair value is estimated as follows:

Cash or receivables short term in nature - the carrying value is a reasonable estimate of the fair value.

Fair value hierarchy:

Level 2. Fair values measured using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly

(i.e. as prices) or indirectly (i.e. derived from prices).

Level 1 Level 2 Level 3 Total

As at 31 December, 2017 $(000's) $(000's) $(000's) $(000's)

Assets

Derivative financial assets - 4,815 - 4,815

Available for sale assets 103,772 419,279 - 523,051

103,772 424,094 - 527,866

Liabilities

Derivative financial liabilities 12,817 12,817

Level 1 Level 2 Level 3 Total

As at 31 December, 2016 $(000's) $(000's) $(000's) $(000's)

Assets

Derivative financial assets - 20,310 - 20,310

Available for sale assets 140,216 364,237 - 504,453

140,216 384,547 - 524,763

Liabilities

Derivative financial liabilities 5,624 5,624

Banking Group

Level 3. Fair values measured using inputs for the asset or liability that are not substantially based on observable market data (i.e. unobservable inputs).

Fair value hierarchy of financial instruments:

2017

Level 1. Fair values measured using quoted prices (unadjusted) in active markets for identical assets or liabilities.

2016


Loans and advances and financial liabilities carried at amortised cost with a maturity greater than six months - fair value is estimated using a discounted cash

flow model by reference to published price quotations.



25. FAIR VALUE (continued)

Financial assets and liabilities by class Designated Trading Loans and Available Other Total

at receivables for sale amortised

fair value cost

$(000's) $(000's) $(000's) $(000's) $(000's) $(000's)


Cash and cash equivalents - - 413,317 - - 413,317

Due from related parties - - 199,524 - - 199,524

Derivative financial assets - 4,815 - - - 4,815

Available for sale assets - - - 523,051 - 523,051

Loans and advances - - 895,622 - - 895,622

Other financial assets - - 4,211 - - 4,211

Total carrying value - 4,815 1,512,674 523,051 - 2,040,540

Total fair value - 4,815 1,512,674 523,051 - 2,040,540

Deposits from other banks - - - - 1,404 1,404

Due to related parties - - - - 910,368 910,368

Other deposits - - - - 918,704 918,704

Derivative financial liabilities - 12,817 - - - 12,817

Other financial liabilities - - - - 2,931 2,931

Total carrying value - 12,817 - - 1,833,407 1,846,224

Total fair value - 12,817 - - 1,828,508 1,841,325

Designated Trading Loans and Available Other Total

at receivables for sale amortised

fair value cost

$(000's) $(000's) $(000's) $(000's) $(000's) $(000's)


Cash and cash equivalents - - 549,153 - - 549,153

Due from related parties - - 171,824 - - 171,824

Derivative financial assets - 20,310 - - - 20,310

Available for sale assets - - - 504,453 - 504,453

Loans and advances - - 810,805 - - 810,805

Other financial assets - - 2,698 - - 2,698

Total carrying value - 20,310 1,534,480 504,453 - 2,059,243

Total fair value - 20,310 1,534,480 504,453 - 2,059,243

Deposits from other banks - - - - 4,340 4,340

Due to related parties - - - - 1,014,815 1,014,815

Other deposits - - - - 839,617 839,617

Derivative financial liabilities - 5,624 - - - 5,624

Other financial liabilities - - - - 1,585 1,585

Total carrying value - 5,624 - - 1,860,357 1,865,981

Total fair value - 5,624 - - 1,851,956 1,857,580




26. CONCENTRATIONS OF CREDIT EXPOSURE 2017 2016

$(000's) $(000's)

(a) Industry sectors

Finance 1,115,198 1,194,172

Accommodation and restaurants 20,031 20,033

Communication 21,283 10

Food manufacturing 187,608 80,298

Government 181,875 150,733

Insurance 104,871 95,262

Property and business services 570,266 555,808

Retail trade 409 97

Transport 754 475

Wholesale trade 30,091 26,083

Other 90,924 49,101

2,323,310 2,172,072

Other assets 4,378 6,133

2,327,688 2,178,205

(b) Geographical areas

Exposures within New Zealand 2,090,379 1,956,439

Exposures to other countries (in NZD) - Great Britain 2,864 48,793

Singapore 18,260 209

USA 10,003 16,235

Other 201,804 150,397

2,323,310 2,172,073

Other Assets 4,378 6,133

2,327,688 2,178,206

2017 2016

27. CONCENTRATIONS OF FUNDING $(000's) $(000's)

(a) Product

Transaction call accounts 947,902 1,097,911

Deposits 885,505 762,446

Certificates of deposits - -

Derivative financial instruments 12,817 5,624

Other - -

1,846,224 1,865,981

Provisions and other liabilities 5,422 4,838

1,851,646 1,870,819

2017 2016

$(000's) $(000's)

(b) Industry sectors

Finance 1,067,350 1,166,038

Communication 22,121 28,393

Food manufacturing 18,250 19,431

Insurance 141,436 68,822

Other manufacturing 226,711 248,230

Property and business services 169,925 136,044

Transport 46,163 37,763

Wholesale trade 104,212 111,625

Other 50,056 49,635

1,846,224 1,865,981


1,851,646 1,870,819

ANZSIC codes have been used as the basis for disclosing industry sectors.

Banking Group

Banking Group

Banking Group




The concentration of credit exposure includes both on and off balance sheet items. The Australian and New Zealand Standard Industrial Classification

(ANZSIC) codes have been used as the basis for disclosing industry sectors.

27. CONCENTRATIONS OF FUNDING (continued)

2017 2016

$(000's) $(000's)

(c) Geographical areas

Exposures within New Zealand 656,180 567,770

Exposures to other countries (in NZD) - Australia 391,262 395,862

Great Britain 87,554 55,056

Singapore 66,847 174,127

United States 487,076 486,908

Other 157,305 186,258

1,846,224 1,865,981


1,851,646 1,870,819

28. CREDIT EXPOSURES TO INDIVIDUAL COUNTERPARTIES

29. EXPOSURES TO MARKET RISK

Unaudited*

$(000's) $(000's)

Interest rate risk as at 31 December, 2017 3,088 247

Peak end-of-date interest rate risk (01 July, 2017 to 31 December, 2017) 2,200 176

Foreign currency risk as at 31 December, 2017 1,325 106

Peak end-of-date foreign currency risk (01 July, 2017 to 31 December, 2017) 5,213 417

Equity risk as at 31 December, 2017 - -

Peak end-of-date equity risk (01 July, 2017 to 31 December, 2017) - -

Interest rate risk as at 31 December, 2016 3,500 280

Peak end-of-date interest rate risk (01 July, 2016 to 31 December, 2016) 3,413 273

Foreign currency risk as at 31 December, 2016 963 77

Peak end-of-date foreign currency risk (01 July, 2016 to 31 December, 2016) 3,138 251

Equity risk as at 31 December, 2016 - -

Peak end-of-date equity risk (01 July, 2016 to 31 December, 2016) - -

Peak exposure has been derived using the Overseas Banking Group's equity as at the end of the quarter.

Traded market risk

Non-traded market risk

Banking Group

Notional

capital charge

For the New Zealand operations market risk oversight is achieved through factor sensitivity guidelines covering the traded market risk, non-traded market risk

and accrual portfolios. These guidelines ensure that the portfolios are managed within the Global factor sensitivity limits of Citigroup.

Based on actual credit exposures, no credit exposure to any individual counterparty of CBNA New Zealand Branch and the Banking Group equaled or

exceeded 10% of CBNA's equity during 2017 (2016: $Nil). This did not include exposures to counterparties if they were booked outside of New Zealand.

The Branch segregates its exposure to market risk between trading, non-trading and accrual portfolios.

Implied risk

weighted

exposure

The Banking Group did not have traded market risk positions during 2017. Residual foreign currency balances within the entity are, however, considered as

Traded market risk for regulatory capital purposes.


The entire Branch portfolio is used for liquidity management activities. It contains money market instruments, securities and interest rate hedges (some of

them are mark-to-market).

* Note 29 Exposures to market risk is subject to review procedures which do not constitute an audit. Refer to the Independent Auditor's Report for further

information.



Market risk notional capital charges are derived in accordance with the Capital Adequacy Framework (Standardised Approach) (BS2A) per the Registered

Bank Disclosure Statements (Overseas Incorporated Registered Banks) Order 2014 (as amended).

29. EXPOSURES TO MARKET RISK (continued)

Mark-to-market portfolio

Balance Average Maximum Minimum

for the year for the year for the year

$(000's) $(000's) $(000's) $(000's)

Year ended 31 December, 2017 38 26 277 21

Year ended 31 December, 2016 58 29 185 11

Accrual Portfolio

Summary of VaC position of the non-trading portfolio: $(000's)

Year ended 31 December, 2017 - loss to earnings 66

Year ended 31 December, 2016 - loss to earnings 284

In the current portfolio interest rate risk outright and interest rate spreads contribute around 85-90% of the total VaR, with FX Spot contributing to the

remaining balance of 10-15%.

The market factors are modeled as either normal or lognormal stochastic diffusion processes. Volatility parameters are calculated using the most recent

historical time series data available, typically of three years in length. Under these assumptions the market factor returns are multivariate normal. The one-day

period covariance matrix characterizing the multivariate normal distribution of these market factor changes is estimated from the historical times series data of

market rates/prices. Limitations of the model relate to the assumptions of the distribution of the market factor changes over the holding period.

Market risk is managed and controlled using value at risk (VaR) along with factor sensitivities which are the standard measures used in the banking industry.

VaR is an estimate of the potential losses resulting from shifts in interest rate spreads, and currency exchange rates. VaR is calculated with internally

developed models designed to capture the market risk of each specific product in the corporate portfolio. The one-day 99% VaR is obtained from the sample

1% quantile of the distribution of portfolio P&Ls obtained as a result of the 5,000 Monte-Carlo simulated scenarios of one-day changes in the market risk

factors underlying the portfolio. The ten-day 99% USD VaR needed for regulatory risk capital is estimated similarly to the one-day 99% USD VaR by using a

ten-day period covariance matrix to characterize the multivariate normal distribution of market factor changes over a ten-day horizon. The ten-day covariance

matrix is obtained from the one-day covariance matrix by scaling the latter by a factor (squared) of 10.




The Banking Group employs value at close (VaC) as the principal measure to handle the non traded market risk. VaC measures the impact to earnings if the

current balance sheet gaps were closed at the market yield curve. The gaps are closed successively from the farthest tenor. Long positions are closed at the bid

rate and short positions at the offer rate. Since the methodology is a simple mark to market of the accrual book at the current market interest rates there are no

assumptions or parameters involved in this process.

Summary of VaR positions of the trading portfolio:

30. CAPITAL ADEQUACY

Unaudited*

Advanced Standardised Advanced Standardised

Approaches Approach Approaches Approach

Common Equity Tier 1 Capital ratio (1) 13.07% 12.30% 12.96% 12.61%

Tier 1 Capital ratio (1) 13.23% 12.45% 12.99% 12.63%

Total Capital ratio (1) 14.60% 14.82% 14.25% 15.01%

Tier 1 Leverage ratio 9.01% 9.49%

Supplementary Leverage ratio 6.64% 6.80%

31. IMPUTATION CREDIT ACCOUNT 2017 2016

$(000's) $(000's)

Balance at the beginning of the year 384 303

Imputational credits from dividends - -

Imputational credits from tax payable 60 81

Balance at the end of the year 444 384

2017 2016

32. TOTAL LIABILITIES TO THIRD PARTIES - BRANCH $(000's) $(000's)

Deposits from other banks 1,404 4,340


Current tax liabilities 555 -

Other liabilities 5,515 4,283

926,178 848,240

Branch information is provided as per the Registered Bank Disclosure Statement (Overseas Incorporated Registered Banks) Order 2014 (as amended).

33. SUBSEQUENT EVENTS

Banking Group

2017

Capital ratios of Citibank, N.A.

There has not arisen in the interval between the end of the financial year and the date of this report any other item, transaction or event of a material and

unusual nature likely, in the opinion of the Directors of the Branch, to affect significantly the operations of the Banking Group, the results of those operations,

or the state of affairs of the Banking Group in future financial years.

Banking Group


For information on the Basel III capital adequacy framework in relation to Citigroup see "Capital Resources and Liquidity - Capital Resources" in Citigroup's

Annual Report on Form 10-K for the year ended 31 December 2017. It is available on the Bank's website 'www.citi.co.nz' as part of the disclosure statement

dated 31 December, 2017.

The imputation credits are available to the shareholders of CBNA New Zealand Branch and the Banking Group through Citicorp Services Limited and

Citibank Nominees (New Zealand) Limited.

* Note 30 Capital Adequacy is subject to review procedures which do not constitute an audit. Refer to the Independent Auditor's Report for further

information.

2017 2016


2016

¹ As of December 31, 2017 and December 31, 2016, CBNA’s reportable common equity tier 1 capital and tier 1 capital ratios were the lower derived under

the Basel III standardized approach. As of December 31, 2017 and December 31, 2016, CBNA’s reportable total capital ratio was the lower derived under the

Basel III advanced approaches framework.

CBNA New Zealand Branch is a branch of, and each member of the Banking Group is a wholly-owned subsidiary of, CBNA, which is an indirect wholly-

owned subsidiary of Citigroup.

During 2017, CBNA is subject to effective minimum common equity tier 1 capital, tier 1 capital and total capital ratios, inclusive of the 50% phase-in of the

2.5% capital conservation buffer, of 5.75%, 7.25% and 9.25%, respectively. CBNA’s effective minimum common equity tier 1 capital, tier 1 capital and total

capital ratios during 2016, inclusive of the 25% phase-in of the 2.5% capital conservation buffer, were 5.125%, 6.625% and 8.625%,

respectively. CBNA is required to maintain stated minimum common equity tier 1 capital, tier 1 capital and total capital ratios of 4.5%, 6.0% and 8.0%,

respectively.


The Directors' and the New Zealand Chief Executive Officer’s Statement

Signed by Timothy Sedgwick Derek Symeas agent for all the Directors Citi Country Officer


Dated this 26th day of March, 2018 Dated this 26th day of March, 2018in Sydney in AucklandAustralia New Zealand

However, changes in the financial condition of Citibank, N.A., Citibank, N.A. New Zealand Branch and Associated Banking Group, and/or

Citigroup Inc. may have occurred after 31 December, 2017, the mostrecent date of any of the financial statements included in this disclosure

statement, although such changes, if any, and except as set forth in the disclosure statement, are not believed to be material in the context

of such affected entity's overall financial condition.

The undersigned officers of Citibank, N.A., being the Citigroup Country Officer of Citibank, N.A. New Zealand Branch (the “CCO”),

signing this statement on his own behalf in such capacity, and Timothy Sedgwick, the duly authorised agent in writing of each and every

Director of Citibank, N.A., signing this statement on behalf of each such Director, who, after due enquiry by the CCO and such Directors,

believe that -

It is confirmed that the said powers of attorney appointing Timothy Sedgwick as agent are still in force and have not been revoked.

As at the date hereof, the disclosure statement is not false or misleading.

However, no system of internal control can facilitate the perfect management of banking risks.

As at the date hereof, the disclosure statement contains all the information required by the Registered Bank Disclosure Statements (Overseas

Incorporated Registered Banks) Order 2014 (as amended).

During the twelve months ended 31 December, 2017, Citibank, N.A., New Zealand Branch complied with the conditions of registration

imposed on it by the Reserve Bank of New Zealand pursuant to section 74 of the Reserve Bank of New Zealand Act 1989.

During the twelve months ended 31 December, 2017, Citibank, N.A., New Zealand Branch had systems in place to monitor and control

adequately the material risks of its Banking Group, including credit risk, concentration of credit risk, interest rate risk, currency risk, equity

risk, liquidity risk, and other business risks, and those systems were being properly applied.

CITIBANK, N.A. NEW ZEALAND BRANCH AND ASSOCIATED … · External Directorships: Emerson Electric...

Documents

Transcript of CITIBANK, N.A. NEW ZEALAND BRANCH AND ASSOCIATED … · External Directorships: Emerson Electric...