Citi Group

Figures as at 30/9/08

Capital Structure: Debt / Equity of 7x ------ High Risk

Solvency: Cash / Short term debt of 0.4x ----- Weak

Operating Profit: Improvements

3Q08 – $16.7b >>> 2Q08 – ($2.5b) >>> 1Q08 - $7.4b

Net Loss: Weak, bulk of losses might appear in 4Q08

3Q08 – ($2.8b) >>> 2Q08 – ($2.5b) >>> 1Q08 – ($5.1b)

Operating cash flow: still recording net inflow

3Q08 – $45b >>> 2Q08 – $52b >>> 1Q08 – $1.6b

Cash reserves: Weak and falling

3Q08 – $141b >>> 2Q08 – $618b >>> 1Q08 – $682b

Valuations: Price to book of 0.2x --- fairly cheap

Despite cheap valuations for a reputable financial company, risk of share dilution through capital injection is high. Depleting cash reserves and firm likely "taking a bath" in 4Q08 might pose as a potential damper for this counter.

High risk turnaround play.