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C Citigroup

Participants
Mike Corbat CEO
Mark Mason CFO
Elizabeth Lynn Head, IR
John McDonald Autonomous
Glenn Schorr Evercore
Steven Chubak Wolf Research
Saul Martinez UBS
Jim Mitchell Buckingham Research
Mike Mayo Wells Fargo Securities
Erika Najarian Bank of America
Matt O’Connor Deutsche Bank
Betsy Graseck Morgan Stanley
Ken Usdin Jefferies
Brian Kleinhanzl KBW
Marty Mosby Vining Sparks
Gerard Cassidy RBC
Vivek Juneja JP Morgan
Call transcript
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Operator

Hello and welcome to Citi’s Fourth Quarter 2019 Earnings Review. Today, we’re joined by Citi’s Chief Executive Officer, Mike Corbat; the Chief Financial Officer -- and Mark Mason, CFO. Today’s call will be hosted by Elizabeth Lynn, Head of Citi Investor Relations. We ask that you please hold all questions until the completion of the formal remarks, at which time you will be given instructions for the question-and-answer session. Also as a reminder, this conference is being recorded today.

objections, at any time. have you please this disconnect If Ms. Lynn, begin. you may

Elizabeth Lynn

will thank Good be today, questions. for Corbat, the Mark earnings operator. for you you, will is on will you our our first. CFO, Mason, morning Mike presentation, call Thank we through our our take and all website, happy take Afterwards, Then, to On joining CEO, available which speak download us. citigroup.com.

today contain forward-looking we subject that may may and Before included SEC statements variety in limitation, these started, Risk today’s management’s capital, turn including, on conditions that to our I’d to a results, the those materially without factors, other to and filings me changes let to With are section which you remind it Form precautionary XX-K. of statements, over XXXX current get like and discussion Mike. circumstances. and of statements based Actual from differ financial said, our Factors are the in due our including referenced presentation expectations uncertainty in

Mike Corbat

the income since strong $XX.X This fourth Thank a we quarter, had for reported to our $X XXXX. announced XXXX. We bringing net that Liz. morning, earnings for the highest we billion of you, year, close the billion to

higher per us increased were X% growth make Institutional for Group. dollars, common on Consumer ago, our XXX the of both to above earnings even of common XXXX. our in return allowed finished disciplined our tangible XX.X%, higher Pretax to equity and Our We revenue In target Banking full points a on XX% of deliver X%. earnings was of this year share tangible positive XX% over and year, $X.XX the year XXXX leverage, underlying up franchise. continue as just is with Good the a operating management investments constant XX% the we XXXX than revenues significant over were by basis expense year return $X.XX in our paired for equity the and ahead than Clients Global XX.X%. with

deposit loan consecutive and had quarter. year, also and We the for growth XXth for the

Our basis year. XX to the assets return points on rose for

of both revenues full-year result and for Our strong of at geographies. continued had performance grow Both increase to products was -- quarter, and clip, international banking XX% across XXXX North to increase a to balanced U.S., X% the growth. with a bringing revenue both Cards Branded America finish the a healthy consumer In the X%. year-over-year

institutional both year. the from and billion and total helped We Mexico. in final business from nearly our for perform Asia, growth cards bringing of wealth Equities increase Investor management tough sentiment $X the didn’t continued was in deposits for attract XXXX. in new customers, a impacted business revenues to our derivatives. Income XX%, to to due existing also the up well, Fixed as mainly quarter. digital fourth Better weakness contributed sentiment positively our quarter to

to grow, the ended $XX posted ratio Day X%. three revenue shareholders continued multinational commitment strong common Investor of with our returning to a over of year rate a Tier on having our of we to cycles, indispensable and We $XX over in and returned despite share to XXXX deliver a work in equity our billion to Private alone. Banking clients. track continued good in Trade global Investment position as growth network ensure the lower X We environment CCAR than and of Treasury capital our to Bank capital remains XX.X%, billion we’re Solutions more gain

outstanding we by our the for shares common yield and reduced our Our year. dividend creates a during very XX% respectable shareholders,

proud of to for the Our year. increased XX% a firm’s $XX, tangible share very over book value I’m increase performance. per our

our hit and target we which did despite return no Brexit. geopolitical saw still rising the we tensions, regarding uncertain in year trade finality for XXXX, environment, disputes, an As

year, we deliver through position you a a entered for multiple our in firm solid technology. capital entering year scenarios from talent and and manage told we prepared shareholders. liquidity As used for the We to uncertainty to and multiple strong XXXX the levers competitive and the

We be where continue institution. light to areas indisputably growth and client-led an see stable invest need enduring infrastructure in opportunities our and of we in for in the strong to

next changed we’ll several sharing next Investor to mind, meaningfully will We’re our that what how you and in year beyond. and forward on over Investor with to XXXX our looking take Day out since May The we lay Day, environment hold years. forward aspire has this firm our we’ll With the XX. we

happy Now, Mark be to to Mark? answer and let over me your questions. turn we’d then it

Mark Mason

of a morning, Mike. fourth a in grew Good lower as downgrades partially increased with quality remained operating savings of growth credit seasoning capital year, you, few of as Starting Slide billion volume stable. assets. higher franchise, on offset and well markets. legacy from including revenue shares continued as impact Thank significantly by average XX% across of year-over-year, ICG, EPS margin income a the Expenses of the ICG, $X the grew noninterest billion reflecting down accrual from quarter our $XX.X in three, higher well results in and we’ve back cost in consistent X% and we credit episodic everyone. rate. credit the last diluted year, Revenues growth consumer net continued benefited consumer in expenses, the with in overall costs buy by as partially efficiency driven in in as as a along rebound And our higher throughout tax XX%, was and prior along investments shares and compensation plan. driven with while reflecting from increased by outstanding wind volume-related by volume to growth XX% businesses reduction and the X% offset year, grew solid continued

a discrete our tax reflecting than benefit $X.XX The quarter. XX%, quarter of was this better per discrete share to tax rate outlook, items. effective Our equate items for the tax

benefit, growth businesses $XXX grew franchises. results. institutional X% by X% in tax dollars, XX%. X% of have partially down four, this core offset would and from our Excluding been as grew with contributions assets, deposits year-over-year constant our we consumer our the legacy slide year On both and billion our loans In rate roughly end-of-period wind to was full show

XX.X%, for quality our investments pretax stable continued and continued with even in on critical to Looking and of broad-based And make our for at as and up across accrual we across underlying with leverage, both as EPS Revenues in was Consumer margin remained with RoTCE were X% progress discipline earnings institutional year, XX% the Banking, generated businesses. the underlying FX excluding our outlook. business of the In revenues revenue ICG, grew broadly across our growth, well line XXXX, and the and all $XXX X% franchise grew our expenses we maintained In the expansion businesses portfolio our positive operating impact as million X% three revenue million the the of momentum we full also basis, consumer market-sensitive the flat expense of delivering an in we’ve Credit X%. gain operating year. an target businesses. as franchise, XXXX. grew our ahead growth the Global generated well by Mexico in gain in $XXX on by in Hilton sale asset on as growth roughly regions. management

Slide now quarter. The Consumer momentum Turning the Banking results to the in continued in fourth for dollars. business shows five businesses. constant showed Global consumer the

$X.X at were while with revenues For gains XXXX, from and X% grew growth margin expenses X% shows roughly year in full consumer, operating in the in America growth regions, in pretax from And in operating last generated year. X% more contributions the for looking excluding were X% down billion detail. up we margin earnings. Consumer Fourth flat, all also Banking while results XX% results growth driving six earnings. continued expenses in quarter, revenues were quarter X%, in revenue both North growth and resulting Slide of

doubled make cards have Banking model, our to and and example, reward against leveraged the and meaningful value In both to roughly streamlining our have progress digital continuing Retail more customer new relationship and to XXXX has a digital propositions our We resonating the introduced and be our new we rate. products will the this strategy AUMs launching across integrated, of while proprietary client-centric submission XXXX, continued of capabilities. These growth reach create And enhance in new loans. Flex and digital, and enhanced cards Flex and expanding accounts in year, better existing introduced with digital we servicing cards, the process, relationships actions Pay, savings are and application rewards deposits, And checking lending deeper capabilities, with base and our offers deposits. our opening we programs, and which account opening we’ve both account breadth clients, most driving in our partners. offerings new plus products our for digital relationship Loan for and

For we a expanding are products. to Google recently American partnership our partnership Airlines announced include digitally. new with we attract deposit to And clients example, with

capabilities building other efficiently. with in to manner scalable a these partners Importantly, ability we to are the expand

versus up saw AUMs full of businesses. up remained purchase us or year-over-year. $X.X X%, our Client as to engagement while to improved from billion continued both towards to as experience year We billion in gives clients. movements, with And time. XX% scale confidence deepen now expanded digital bringing X% points strong Turning deposit In XXXX. average raised to over reflecting engagement continued roughly relationships a grew up traditional $X of Cards retail, with national Retail our the basis sales, contribution revenue the channels. Banking, our were from the to loans X%. drive and X% our our average ability interest deposit sales this billion individual And Citigold quarter. momentum momentum results in in $X net digital we our to XXX to strong XX% And market a deposits strong Branded and our growth excluding with we total loan date percentage of revenues improve

offset year-over-year, of of spreads. more revenues Retail the down However, deposit were lower as $X.X deposit billion stronger Banking was volumes benefit X% than by

consumer and Services expenses. were than as majority Retail year-over-year, revenues related $X.X efficiency growth across North savings, year-over-year spending the X% X% of more America Finally, in volume portfolio. up with purchase down were billion investment and sales continued expenses higher offset Total loans for the of

seasoning by year-over-year, grew losses credit XX% cards Net credit. and reflecting growth both loan in to Turning portfolios.

NCL Branded Retail basis and basis full Services rate were U.S. XXX in respectively. Cards and points XXX year points, Our

results be seeing gains. Banking X%, in show we consumer half we Looking $X.X dollars. America, to grew again NCL for demand relative XXX In at few rates to a outlook we of normal points note quarter. our in importantly, year, episodic this strong deposit basis XXX seven, half basis GDP XXX and first range Branded Mexico in that as for growth expect grew On high levels Fourth are client Services. growth and see including XXX or to Consumer XXXX growth ahead, volumes. slide delivered EBIT second Cards above a muted revenues billion for the overall I’d Retail was International quarter this decelerating small to quarter Loan slightly in in points of of reflecting of And in the constant industry we NCL again the the the we But typically lower rates environment also current X%. and higher of Latin of year-over-year seasonality. slowdown end revenues

Asia, in Turning grew revenues quarter. the X% consumer to fourth

with wealth volume-driven our the in and consumer XX% for and We spending total, X% cost in to in money more continued credit year. trends quarter investment was primarily in increased growth Banking management growth versus was fourth Slide In savings, growth offset X% detail. Asia, efficiency last by in shows new global and drivers partially Mexico. growth down International by Citigold X%, expenses of operating eight driven strong credit Consumer net in as clients see

and credit increase a including reported banking the NCL As with The slight reflect realigned we this slide resulted of this commercial now quarter, Asia, Commercial in reminder, consumer on in this trends change. only a those America part all Banking North in shift ICG. GCB, business eight, rates. In previously activities, our as reported reported

it the GCB of However, lower remained NCL book. on have in there, reported represented is did the business trends structurally Latin favorable roughly impact of America, quarter. rates rates which and a relative NCL size loan Overall, this given commercial one-third credit again larger the

equity were markets. engagement partially banking offset billion X% lower and to the solid in billion on revenues reported, markets, now Solutions performance as in Investment Clients and X%. and softness dollars, the rates. up nine. strong client $X.X revenues in Turning continued growth reflecting Banking Group Income the Total Treasury businesses slide of by $X.X we offset impact Institutional billion momentum as were the up accrual drove and deposits of by as fourth constant in XX% well in Fixed as Revenues quarter, both $X.X X% up transaction partially Trade were in of interest volumes, of and strong

and underlying lending relationships including our cross-border in see well and of billion up reflecting were debt in quarter. payment of their commercial as driven in growth the of Markets rest new clients, underwriting X% was increased credit to and downgrades as activity flows strong. outperforming well offset market basis with were by on by XXXX, volumes as underwriting, And products. our expenses operating revenues help Investment XX% X% finally, Equities flat of our portfolio. We more robust from challenging as largely in new derivatives. continued a particularly And new with of existing partially particularly recovery $X.X reflecting performance, clients clients, year, were reflecting on were growth a $X.X the business growth year-over-year, million in corporate spreads. wallet, Total overall TTS, spread few roughly higher and as spread $XXX existing Fixed investment-grade of and $XXX drivers revenues were from growth fourth to as a services, as well would increased while compression, strong and quality higher equity double-digit the from deepening overall costs quality clients, Securities higher up in expect global were XX% strong by as down largely rates million costs. million, both portfolio of reflecting from revenues lower the revenues year. we $XXX X% primarily down this last quarter capabilities but reflecting what expenses the were Services driven the book up equity given by revenues portfolio. the million offset XX%, XX%, by basis, lower security in a revenues unchanged Income last Total legal increased Banking performance of year in revenues billion leveraged as in $X.X environment billion and compensation-related annually, average credit growth costs with lending size coupled the existing And dollars, volumes consistent episodic $XXX Bank were funding clients reported investment well needs. with constant deposits, X%, Private our in of up offset remains and full as as we with a to were optimize volume

by grew but dollars constant as a Expenses Income, currencies, a results by from trends, year. X% operating growth, relationships. in on investments our down results X% the of of spread year, full the losses continued XX equity both we clients, a deliver client strong products. TTS, finally, to the XXXX, were perspective, reported basis, of dollar deepen million last was for and continued points XX from for gains banking, with Corporate/Other. perspective, cost wind across reflecting roughly net rates looking weakness growth revenues Revenues a half Private For $XX increased to assets. grew Investment the Slide offset as contribution largely credit generated our Fixed at which On constant the and down The legacy a XX%, strong over basis on momentum Income driven credit more from as X% combined leverage our acquire partially dollars as in our $XXX And markets. continued Banking, year line new continue and year And costs in as helped was as largely well a Banking outlook. TTS Bank. businesses X%. both loss in X%, credit remains in revenues XX% assets. infrastructure revenue as leverage, the roughly on basis, outlook product our in reported by offset while with revenues grew on million XXXX, Services we it strong shows existing performance wind for and Investment grew unchanged Fixed our Security this of partially as for these growth legacy constant X% corporate discipline, in well full clients equities and combination line with positive increased was in credit And solid pre-tax was engagement and higher and well client revenue of income reflecting reflecting From tax operating revenue in the quality positive And rate. quarter, in our lower and year. prior our with offset higher, of than was with normalization

to ahead Looking Slide $XXX lower the as well of we level rest our split controls the franchise see shows pre-tax infrastructure contribution markets of a net the gains. Corporate/Other excluding roughly reduced of million XX as quarterly top and a would slide. markets our interest in invest business from XXXX, impact as in of revenue, and we on for continue between expect rates, loss and from the some

latest X% North delivered the you with As and revenue line outlook, America end in reflecting Cards in in Branded mainly constant dollars roughly or in XXXX, can our year-over-year $X.X net growth we see, strength high interest in billion of TTS.

revenue offset than by of rebound saw noninterest flat. we forecast growth basis net sequentially, in revenues, in nearly the million markets, billion. higher interest was year-over-year And the total to the rest Looking end while $X.X rates. growth $XXX revenue of quarter, interest by the of by allowed net interest The both driven or to X net year us noninterest markets the margin this Citigroup, a sequentially, our above and revenue points the also noninterest for increased original on X%, turning roughly And year-over-year more basis lower full generated deliver quarter, for year in strong roughly for a in revenue. at strong results to franchise we of headwinds growth

from non-NIR look X% with revenues we year both, you and basis our XXXX, X% NIR total underlying if balanced and realized at reported an basis for on growth a contribution on full So, revenues. a

Looking ahead despite this become interest to in and the by direction year, driven year, institutional mix we revenues continued loan in growth in growth consumer deliver drivers, this growth to XXXX, and rates change our and do the continued comfortable both we some net revenues in expect of businesses. the as growth remain noninterest our to ability fee deliver primary across

both we return XXX capital by So, tangible our increased operating metrics. and to assets. growth a We by growth driven and progress RoTCE growth year-over-year full-year basis to risk-weighted book leverage, a in XX% in year-over-year to XX.X%, fourth made growth, for a and basis. count sequentially by of expect sizable good decline income our our to $XX.XX, ratio a in modest revenue summary, share XXXX positive value Citigroup, our over total shareholders. capital broad-based we with In institutional the on XX, from XXXX aggregate, of in with slide generate revenue our earnings quarter, improved share contribution our reported key achieving balanced drove XX% per ahead the CETX year. show On points, our X% consumer and revenue target driven We businesses. net of capital XX.X%, In RoTCE increased we of a lower for

business investments we our loss outpace significant expenses. savings rates expense maintained loan as hold while productivity incremental our our while discipline, medium-term franchise making continued expectations meaningfully volume-related We well to region. the were flat, investments as in growing the offset credit our to every On side, across able within portfolio expenses as maintaining and

we firm billion of during to post year. position on to $XX share rate, On buybacks we tax the returning our over reform, the tax and capital delivered and continued work capital goals, the optimization through better dividends

our growth returns. in and deepen and order we a broaden in improvement sustainable, client-led continued to steady to relationships client Importantly, drive

in committed we in continued progress give results XXXX delivering Our and XXXX, us forward. confidence are to going

For expenses, topline growth XXXX, deliver to roughly flat franchise continuing the we while expect manage responsibly. and modest to

tax effective to in We rate any tax items. expect we manageable our to and XX% cost credit of remain XXXX, around be expect excluding discrete

markets our RoTCE today, an mentioned, set has are As and growth environment to we for an pressure to in In we in interest similar XX% the the with for operating one seen of slower the expect we XXXX Mike rates, global and XXXX. we’ve industry in since changed XX% lower revenue in the range environment deliver to banking. targets wallets

progress year we talk With expect at in Day forward and about happy we and May. we and Mike returns, look are beyond questions. to having will to the make that So, to improving in continue our I to take our Investor this opportunity any more

Operator

[Operator come will ahead. go first from Autonomous. Instructions] question Please The John McDonald with

John McDonald

Good morning.

Mike Corbat

morning. Good

John McDonald

billion Mark, I It throughout $X seems initiatives per doing it seemed like Is like kind you growth. up on pace it deposit you the can and about end ask with think you the the that are wanted quarter growth? the accelerated of year. a keep new that towards to year of deposit

Mark Mason

as and good consumer an our that point on in seen year is as many the strategy. we’ve the well said around consumer you I business think in side, as deposit important growth, both institutional proof through So, our ways

We’ve also, we those as the at initiatives, Airlines; side and Retail We good are in on customers side. markets. expect high-yield our to new seen to I will of types continued on such the account, we as develop growth propositions outside order the We side said, momentum in consumer to just the value Banking continuing and with on card of to to continue institutional products partner our in launched our focus deposit and continue fuel consumer. with checking on grow American

metric our that as growth We continue, think engagement and to an increase with expect important we about that’s continue to we clients. how

continued growth we yes, do see expect so, deposits. in And to

Operator

with Schorr is Please Evercore. Glenn from go The next ahead. question

Glenn Schorr

Branded if at could Thanks. Services Cards Retail when any I you curious look if well, along compare or lost know and there the driving curious, were contrast better doing up to have don’t I’m XX%, X%. the talk one what’s or up partnership repricings of you partners way. I’m about growth. So,

Mark Mason

Sure.

Branded traction clients heard to see you’ve we’ve continued through our purchase on good growth the up continued Cards say branded with X%, So, side, in and the seen there, side. course we’ve the seen on us of sales loans the year, you’ve

growth So, quarter X% X% one, three, X% in in quarter quarter four. quarter growth X% in in two, growth

that We for particularly on the full of And it on X% very the Sears the I the that reflect that us. from year. have purchase sales. good average Sears. So, talked that momentum part and those been profitable big referenced as there, for impact growth number interest a growth that, That a year continued balances, to you that guidance a is the which portfolio XX% a see and Services and and of good is the the pace about portfolios. Retail X% earning pressure expect still contributor the are the we’ve we’ve good full and of momentum think for And make a it’s Sears, ours, up delivered that On well. for increasing you as But, good portfolios multiple is seen know, there in a portfolio, that revenue Services. has the so quarter within would portion we from growth Retail of we’ve partner side, for said, to said, do the sizable results as obviously

XX% still engaged is very those of the and stores. We’re outside with there the of some spend customers

given so, And but good that profitable some on everything going partner. pressure returning, with

Mike Corbat

In particular, the store closures, yes.

Mark Mason

on but lot going important very And Yes. partner, a there.

Operator

Wolf from Please Chubak question go Research. next Steven The ahead. with is

Steven Chubak

to some of said, guys I on basis-point start the include you it RoTCE believe XX% So, does Mark, wanted this delivered a question a with discrete and I benefit commendable, That year. items. about from XX just the tax Certainly guidance. off on

the higher key to I you just so, no as maybe as on core to assuming to the to we help walk saw, you thinking drivers have through the about to XX.X%, that XX%? side, think just the try think that get rate, benefit in and XX% And to of fact unpack zone and of are what likely I’m trending it’s and do the provision somewhere XXXX, the us that in help tax some XX% further us XX%

Mark Mason

Sure.

of you of look, it’s about I performance, performance. So, saw key can we important good some year what look and you the the think kind many growth see top-line of of and EBIT think and businesses underlying drivers this across -- if good

have network, consumer and with in capabilities we that ICG. of in, consumer digital core We continued expect We the top-line top-line having customers card to deeply particularly on to so linkages has more but execute the market, institutional continue get clients, our that our to TTS, penetrate and new the that strategy particularly can to the which is growth on do those growth we’ve propositions as to we invested underlying also side. expect out see continue good rest metrics with we there develop value that proven our

with side, engagement So, the institutional on good continued clients in and and momentum, both deposit existing and TCS. volumes, new

couple a growth points capital constructive in top-line environment with flat markets percentage so, expenses. a of And

we to and funding have look on work and will that benefits that productivity at of the playing growth I at and – volume that the we’ve XXXX. combination that of to that targeting of And the expect referenced cost so, get and we’ll believe all continue to combination of managed tax the you focus continued that XX referenced. line, course, us we the range through this the the for the but and that the continued of to to XX with of And beginning uncertainty we the credit, year again year, are

Operator

Please question ahead. next from is Saul with go UBS. The Martinez

Saul Martinez

Mark. guess I of sure a I actually first, to heard correctly, make something you just want up, said So, I one clarification, following

What the thought and that what That awfully much right. was -- Other did heard I I rate higher. a it’s I what for doing. million on can’t Obviously, higher $XXX -- pretax Corporate it year, per pretax quarter. Other? for outlook run you’ve and seems repeat next said You Corporate you just was than -- estimate been can be Is that

Mark Mason

Sure.

impact I the we last a gave guidance That a so or will couple see higher $XXX about than Corporate/Other, bit guidance of expect reference a prior that $XXX did of million the that. to So, time that million that to is things quarter would for of an There I million on are that $XXX higher. given drive Corporate/Other. impact I’d that

some plays of in it also That One three back rates. XXXX. the through that’s We the plays the is of in revenue cuts which obviously Corporate/Other. of had half of performance, through business but impact rate the

We fewer have play gains also here. that that from XXXX I have some have -- quarter and we’ll referenced gains. the through through investments we

So, have And continue controls. infrastructure. fewer be will to want on continue make data, and that of then, the investments things of to focused technology and we I’ve such continue And in the to and we to or form to infrastructure -- in make will -- people likely and and those. as referenced those governance data are investments

Not be are three drivers we’ll making. And the impacts in will those expense important or is so, underneath And all what guidance. that investments those be that line.

keep we the move expenses mentioned, As flat. will to I

Operator

with Mitchell Research. The next Buckingham from Jim is question

Jim Mitchell

line -- gains, the revenue, of A in X% you the you at quarter. Investment particularly had growth follow-up. -- the fourth been the the it’s in some of year, top But, has Bank look in wide operating markets that’s why been growth, firm, if X% with a growth assume okay. I X% half minimal, leverage, appreciate we capital as the range RoTCE. had expense particularly and unpredictability I second But, investment last

that upside, pretty operating So, I would to of the some the want understand, I leverage. end imply just range think good upper

half in items So, higher or unusual of we can’t expect spending the see is operating be volume-related a revenue that expenses growth, ton back that to year, if you of some the just to a accelerated slow, offset it and is by get leverage. you going

Just in revenue the help through think me scenarios? trajectory different expense

Mike Corbat

and bit drive. -- talk little may the Mark, I Well, environment start why and let maybe about me a just don’t what revenue

things here, ourselves phase those in clear. trade as of describe deal. was pretty trade some USMCA, Right? get well Brexit, what be year, along deal saw, year So, the uncertainty, that next rate looks Hopefully, Kong. I the a a USMCA headed, a see will cuts like a things like would like XXXX, we was referenced think, Hong in the position the get X the where of would half couple and lack should looks we out if it Mark we trade lot of to days be deal, now at looks of say And throughout driving of China we and but the of horizon that ratified a look, Jim, least there the the and I back where make deal, hopefully being Brexit path it we it at I

were some to chance volume-related of maybe we a market of the bit some overhanging think out the investors. the and lift of I some things get that if a parts of action So, our of have might the C-suite, more not

banking think we But, a into and we volumes see, the would see bit. pick M&A when year the ECM, again, we activities broadly. at the down little think close Obviously, look you a the calendar other areas, I that to the the I think, of think combination pretty And look pretty looks here combination forward when of you at more as reasonable look at You I look look good. the up, good. DCM but backlog as I

a think side. the driver is good So, pretty one is revenue on I

Mark Mason

Yes. a I add that I guess, guess I’d just couple of to things.

that couple we’re will the planning are XXXX, I that cover XXXX, in are to think playing So, in of With broadest line that that again, we’re said, think and make. through increases or expense expenses. a investments volume-related any benefit as that one about the we sense, flat there targeting things

we’ve those productivity that is past the So, the investments. over talked about and years couple of outpacing saves one

kind again to at particularly, if generate the the you in back quarter, of capacity. And you half. And million And used or mind benefits referenced so, and then, you of we the you growth in got taken, will fund creating in be look investment that we’ve that last through in ICG those some $XXX XXXX, keep expect growth increase benefits reflect or obviously us of XXXX, have is increases course with yet saw through charges another volume that year million those in of to adjusted XX% that play we’ve that play to reference opportunities. but the a changes $XXX to year heard X% capacity. comes of associated would the increases topline that the activity severance number revenues, compensation as or expense Two, headwinds of with expenses year. productivity the the half growth, in out the associated in we that expenses the repositioning that Those with were times will back

will we’ll the got the so, as as look Day. course And benefits Investor XXXX the investments to go more forward the XXXX obviously expense year. really and base into this through much into you get both about And and at of productivity full beyond for we of timing think year the the vary

Operator

with next Fargo question The Wells from ahead. Mike is Please Mayo go Securities.

Mike Mayo

a data and and overall talk to the priorities know or workload and expect the with the and cloud terms Can of I intend relationship in in go, or Google for spending of percent then you public maybe number with you are bit the for spends? just about of front of you the a spend process benefits where the that on color and for you the back-office, more and office total to you broad Hi. you office the are the reaping centers move technology tax back where where front little it’s spend the past to like have office. or question but

Mike Corbat

Sure.

in. I chime start Mark don’t why out, and So, can you

steal give I Day. I’ll Mike, of We’ll don’t But to at you this want fair a the again, Investor detail go a examples. So, couple bit of our thunder. in into

just peak in You’ve today GDPR other get organization centers. XX global is, to run you a a on the down a and And the What opportunity. say and you of we’ve and and landscape before data in I data And to how Day, at had you say centers. asked things, At as its is massive terms over see of we number. the there Citi don’t static think the necessity Investor based storage. we combination data XX. to I XX, XX and XX to unfolds regulatory again, won’t is question But got redundancies, of how the legal were told approaching data down would XXX I countries, we’re

next personifies way there’s around data through a those our modernize through of itself giving of in us soundness, Second data, many processing, us data and storage opportunity bolt-ons, in that ways itself And is benefits, we of all the better through of giving if manifesting at the data that terms big take terms or to in significant came other that the experiences. of operate. Citi stage acquisitions beyond in really to together Company operating piece we to in and look client safety in benefits, terms you straight think terms all the places

part here described of the reasonable around and of part is modernization the of what I our referencing number So, a of is number as that approach. or data in the terms data Mark spend our

when and rates, you contact box talked again you’ve the But, around able look payment and been in our do with things due, more specialists at take And to my call call excited million to consumer look of what where collect IVR my on same inbound example to dedicate I’ll agent through we’re the doing is calls types technology we the has upper to that. and drivers. centers forced that we’re at back an changed our $XX way of our calls. the deal I’ll last circa things And a we’ve reduction calls, give centers. time, around those the how the example, and about so, being time, page one complex points XX what’s I side my to balance, our right-hand you as at you’ve you chat is around about combination basically if you handling the if that we’re seen in the not consumer seen calls into ThankYou

the at there. same contract can time, see reducing we so, and And rates, you those it are significantly

more your footprint, as getting engagement. We’re -- you’re growing volume, we’re more also your on you are obviously, as you growing taking cards base, digital right? are deposit As growing

volume attractive we’re And absolute reducing at the the so, obviously of rates. we’re taking also on but on not inbounds, only very level number

So, the get going technology, we we think warrant I that or think can I we’ve good you’ve things certainly believe -- of seen think investments of we’ve we’ve And the these slate, highlights underscores and paybacks. that as pretty the out the made paybacks numbers after on some we put gotten up we’ve in why that in got them. that

Mark Mason

about Mike, Mike think that. And described I in agree four kind with of buckets. it, I’d Yes, as

it’d investments like onboard the we are technology lot clients that countries That’s invest service think do those about are of own we they them. do the are solutions, in about Those identify we in streamline markets as and will. and view client are And client investments. making Think work Think we as things digital other about client-related. their also clients a I about technologies, new managing needs, investments, client-related experience in their we so, if TTS we points, pain our be directly new with we’re we our to making technology our from that we receivables enter as but we products, customers invoices, think how managing service on-boarding, invest investments the corporate whether invest solutions a or to point bucket. that new you that with second on-boarding. referenced regarding in

third more we -- the from and an -- bucket it to its our own fourth And Mike paybacks Mike’s as manual input referenced And The before, cyber. I on how which part in processes. separate our of internal the through streamline own opportunity way because there for has manage and internal streamlining how bucket is just are of and of significance there because we referenced. then, manual less straight reconciliation data operations, processes, the of work. automation, in do There’s output is

technology that and continue is And clients. important past cyber a grow protect and five the to cyber. so, investment to franchise growing us our years been expect over very for we’ve the And in to our investment protect both

So, way for into XXXX. investment think that need we lens go about just technology the at another it to we as look and the

Operator

of America. go Bank Najarian Erika with Please question come from ahead. The next will

Erika Najarian

XX% from here, to major the the the capture continued the this does rate you on no improvement potential there’s detail I we if Day. global -- keep outlook? Mike, flat Do us franchise Investor you fully and give for more or in year the change be economic to fairly and XX% of RoTCE realized could curve think expect

Mike Corbat

Yes. a lot the those Again, XXXX. using client approaching share the along and the expense we terms that think continuing benchmarks. in side the wallet revenue talked progress you paramount make way of we’ve make And levers is to kind and ability against engagement, improvement got we’re gains, to the steps technology, word of of on Improvement about spoken the mentioned we’ve we’ve of the improvement. way. And

Mark Mason

up I and time. improvement we agree. consumer pointed mean, ICG. two in years ago and completely past as opportunity of the XX% when underlying are We was talked progress about I to the thought years Yes. over we made were the couple focused the having close to we gap where consumer between or something so. we significant on our last performance over We’ve the

making think We’re We continued there’s on good there. upside progress that.

and back that’s TCE down the in Holdings, capital between we think will We the and consumer when ICG have, that over time portion tied have in DTA, of itself it’s have itself Corporate/Other, TCE that also talked know to and improved our excess that that how Corporate/Other. and we to RoTCE. Citi contribute work what of We over broken about some will you out time, about,

urgency of continue intend over improve So, we’ve do sense to responsibly real time. we got a to to our RoTCE that. And

Operator

will from ahead. The next Deutsche come Bank. question go O’Connor Please with Matt

Matt O’Connor

kind this working to of in seems area just and had of progress, it’s piece gaining tough perspective. it. an like I but, years, you’re business. only revenue, share a you still share it Obviously, want last from was been in call fixed percent banking, the and the missing my don’t the in the I it’s some some of very [ph] quarter gaining you’re wondering of overplay on in talk kind It’s a strong few quarter. if strong you puzzle signs few about of what in could focus equities

and talk maybe what working you’re the strategic on? there could kind about Some outlook just you of

Mike Corbat

Sure.

Today, of into So, way, And on consistently we’ve top the the as at taken about along you probably and the at we time, not. and year mission recall, several number years nine we six. embarked find the this moving we number ago five. ourselves were share,

we on not where or like where based market. this we’re coalition ends. But, data be to some others, probably of want not look we kind to certainly flat So, and

look not making us revenues, particular we post year. also investments we’ve just trading at in you’ve business, prime I the seen as as urge particular think, to look at things cash, done, against in we billion that broker. would I terms Delta it adjusting capacity of the $X end in the roughly you One front But, call for in derivatives what

another security I billion revenue. billion as think, you’ve got revenue, about of as at about business another to GCM, look of well business, services $X the aggregate our which include $X.X

equity business, So, our as about think business at us. about and a it’s to $X.X look we billion

a the said, we and in we objective our still still being is can meaningful five. in improve it That business. have returns being break think said, to we That profitability top aggregate So, benefits the we’re to work our there. business. overall the maximize focused post-trade But end, trade to to that the the more and to of trying franchise, again, pre-trade but on end do

Operator

is next Betsy with The go Stanley. from Morgan question Graseck ahead. Please

Betsy Graseck

RoTCE. of the on capital side the one questions, Couple

be ask or CCAR out guess, excess because back I you I think, back? expecting recent the do we did we I’m wondering CCAR there should you that are as feel indicate go XXXX have capital. most from some in acceleration more holding feel you here cycle? you give that that cycle, I’m to into just understand And wanted like you opportunity like if asking maxed to you I

Mark Mason

Yes, thanks.

or so time of year capital ratio obviously at to We’ve down somewhere worked that of we’ve that XX.X. excess and around the down CETX roughly So, we having a from gone over have. working we’ll much end the XX kind

will and opportunities to shareholders. excess return talked that business try we’ve there’ll done so, as for past obviously what continued as first That CCAR growth less would go is as we And exist. the and much of We to come up an we’ve to responsibly will important process can driver in us there. obviously We the that’s progress the to about. delivering want on with the in through look be

well So, of out what’s with to form and as DTA from shareholders, distribute continued of disallowed the then generate we’ve fund love earnings in we would to reduction the that that benefits and that we’re growth both including targeting available dividends the buybacks. to the and able as in year-to-year, left from to first been

number as so into returning there responsibly analysis, is the we’ll And so, go much makes continue down see. some and and of But on path trajectory a scenario growth Obviously, so that that excess sense, as given are we forth. the that’s including as there it can factors of the we there.

Betsy Graseck

goal, is by And part would returning, well, I of so, think, the range as you’re on XX% discussed degree that function envisioning a the capital that of RoTCE in your XX% to capital. range is being I driven know you the…

Mark Mason

include capital, RoTCE I that the XX in does range. not ratios that it range at includes The a XX% in competitive the mentioned, of but to we’ve absolutely, Yes. continued for XX% reasons seen payout past return range, continued XX to payout the

Betsy Graseck

Right.

you are be. your and separately economic input just retail expectation day of the the then, wondering how for that charge-offs, an bit you about And on include CECL what branded card are I’m speak your CECL on for period you guidance, could for some I card reasonable both guidance for to little And Okay. net is assumptions card. thinking guess, likely gave what too, partner And and supportable does your the perspective. impact two maybe CECL a

Mark Mason

Sure.

two me I pieces of if Let can. kind break that in

rates, referenced we’d that that conversion and be regarding guidance there basis the that I to XXX points is earning mentioned -- NCL would And on So, I of of the I’ve percentage I cards in in gave set cards, reference target should say, bit balances. a the past little credit XXX cost a above higher in into my or medium-term of that, seen interest we’ve think for a branded. this average I

volume a comes but activity, higher NCLs. with its high-quality with it comes higher thing, volume that expected, And profitable is that with so, which than good

range the of would put that. much us that referenced driven is so, that And potentially increase that outside by I of

articulated, past terms a in we CECL. that I’ve XX% day have I’ve terms referenced and we factored of our a range XX% the of about have In on the the about of in how one think in end -- we and think roughly impact the certainly we forecast impact. range to of how high

the by more a little to or day roughly expect the one increase reserves XX% bit precise, impact We to $X get roughly billion.

of So, CETX From inside capital first basis the range the XXXX. regulatory of impact get points that the will of XX time about in we the be I’ve basis in of perspective, to by a XXXX communicated past. about with full that X a quarter capital points

would imagine, the you significant the on side. consumer As build is

on is cards, to based So, by reference XX the coverage to that to increased driven your and months being about it’s XX from cards months.

billion. the by corporate build, piece. in It’s And down the which a $X so, the that’s nets more significant decrease to about offset

we our that will a are variables consideration. or consider And of two given day the whether that moving I’m you of into talk that impact I’ve factors of calculation, that in that go And forward quarters, but forecast. there it business, number kind look the we two. a about and as more factors number of kind range, economic day sure seasonality of there referenced as the at are be that conditions that obviously You it’d there in we XXXX

Operator

go Ken Please ahead. The Usdin Jefferies. is with next question from

Ken Usdin

a Thanks Good morning. lot.

on and of there any of know all year-end, question stress out the finalization a -- waiting SCB your where Just coming no I we’re capital. and that Also to assume GSIB you just landed the the was change all. I test framework.

And you changes in that? what up setting do of is SCB, think regardless the you have any potential terms any of -- framework now might the for just so, question -- the and to anticipated around to how you look what like just changes are I expectations guess, final about timing

Mark Mason

which of the ended reference XXX XXX, should into guess, and quarter, GSIB XXX, still just that directly I X% low the inside or well, quarter in We so at up address I’ll so. we in about your well as or the to the the score. below X% At bucket. fourth below right end so the is first XXX bucket third the Sure.

Just managing given seasonality we focus in the that responsible a that that way. see we’re ensuring obviously we some the on of business the and put

year-end we expect the here And the bucket so, for is to be or year-end X% where by XXXX.

getting cycle. heard, the of In capital in you the a in around terms this out interest buffer, stress a of, we’ve something heard of next number comments CCAR for as lot

I seen anything how haven’t in, That yet. or of as of are obviously out think When middle CCAR continuing We planning about the need managed with buffer would account impact we buffers I go kind factor of of I to of come for have there, of by consider the think capital February. We that a buffer. one to to back that that CETX to in we normal there kind And estimation we submission. our the XX.X%. about number how of we of stress in ratio the but our

buffer. there. capital have have conservation management about that And basis above XX points So, we we the also buffer then, a

any should regulator’s capital approach holistic including the take on that And neutrality. target how for these is integrated the together we cover take have inside want proposals, neutrality an get with that that views while already that comfort that of we in to SCB so, I’ll of each do in to of whatever is able and and we make we to that that proposals continue how a proposal, thinking these more will across be The fashion, point, that as in managing comments work clarity is information some industry the targeting ourselves. factoring and the the we we’re my final one preserving capital we’re

Ken Usdin

of the repo seasonality, the anything balance GSIB, that’s thanks the flows you sheet the there in got normal course or -- ins else terms and really environment some just via given for of that see is of of from is And was Seasonality understand. outside the outside that. seasonality? volatility? is markets, it, outs Got that inside just you just that it clarifying coming balance -- Fed changing just and business a sheet Anything expansion, the

Mark Mason

deliver inside as you obviously outside It ensure of meeting to was client to to repo able in of We that, market. needs kind mentioned, bucket, of but nothing while work seasonality, that. the and were nothing that the related activity, we being

Operator

The next KBW. question is ahead. go Brian from with Kleinhanzl Please

Brian Kleinhanzl

Yes.

some takes just puts the get walk being grow with behind and on of NIR able guidance. Could the that? that a to also the quick you kind comfortable macro through you’re then Just in XXXX? of using what’s question you And assumptions

Mark Mason

Yes.

mix we in driven a I be growth through there. and that probably We non-NIR. as by in expect pressure as XXXX that’s or kind And both the of would some will be quarterly as loan growth mentioned, the So, do drivers growth total NIR we a of of mix revenue walked from expect be that and But, both with basis, some be we -- expect idea last there rates well. primary that volatility of well of NIR kind the as impact to loan around that to just kind the through due how NIR There’ll to mix get on growth would some look. obviously has rates. I quarter. offsetting think dynamic there, forward there point that terms that of flows market a about And to business, NIR interest of

for forward of additional one end cut basis curve, way towards XX plan of in back XXXX. out there the of assumed about to the we’ve similar points XXXX, the we As what’s rate

half the three we of So, the back XXXX. ‘XX cut rate have back of and the half full in the incremental in will XXXX cuts of assumed one impact saw

Operator

ahead. is Sparks. Please question with Marty Vining The from go next Mosby

Marty Mosby

see like net group. at or the of the trending rest it’s would really interest the not Thanks around kind question. of And for the taking and what margin in you bounces

kind was impact just as that the it positive So, are it got move was a earnings do we curious, how benefit quarter created, that of bearings -- seem sheet like forward? Is looked or you stronger. because balance the sustainable more kind go this was you didn’t of positive the NII what really like it real

Mark Mason

net much by about And quarter-over-quarter. markets driven of the by earlier, interest X basis I that, was grew points So, as revenue. margin mentioned the

a we fourth rebounded. the as big saw So, quarter uptick obviously year-over-year

haven’t to how -- a forecast and mentioned you increase the that I loan as in NIM mix mix the factor to will plays all And have just so, an in I And forward. NIM up factors going into given XXX. forward, resulted balance that the such of on out things obviously, go I spoken those as imagine we haven’t NIR and non-NIR. really But growth would and obviously, the of all XXXX. the of in as NIM I

Marty Mosby

that hosted, about last Day at Investor I And capital. it Mike, you was wanted then, ask to really Citigroup

You overall had was in also revenue business. pretty dicey. invest it And the then outlook, talked how to you the about

starting a place momentum, totally you’ve investment So, pick that, up that the required forward. much the couple a it feels so different like accomplished years, we’re was little maybe revenues last where going in to not as

the capital the the to this bit little kind up away is a from of it of dynamic, the next Day. starting business being into now fundamentals actually So, driver Investor going perk to just move

Mike Corbat

levels more and you, revenue tell you you’ve but the I But, that environment. made of we gains think think most all I our benefits. to off across Investor client future of I particular resonate of our in we’ve continue share to seen clients, that Marty, certainly we’ve at that. we kind businesses in expect I I’d market coming Day, we that the going businesses, continue our And as towards of had I our look about gains. Day, products, made reap things think wallet I potential service, easy to one do, talked are since think what think expansion, investments is talk to the as good we’ve that -- an would the in the And look about investments love engagement Investor it’s or as of as we with

and experience continued at a on safety technology gives investments side you’ll talk which You discipline, hear will we cost expense soundness, obviously think hear gives customer and and the to the us benefit a but a us same and to talk those benefit again things. the in benefit of gives technology time about about pieces, multiple infrastructure

I think, think versus income probably outsized as accelerates. in momentum times at end. the big sight, franchise time, But, an you the again, I are coming same to net think I the So, capital of return the

Operator

question is ahead. RBC. Gerard Please next Cassidy from with go The

Gerard Cassidy

Mark. you. and Thank Good Mike afternoon,

Mike Corbat

Hey, Gerard.

Mark Mason

Gerard. Hey,

Gerard Cassidy

just revenue that year revenue you on for of a we’re on the for from at stronger? revenue this gave some are could and of your just year macro where we what you come looking us than I XXXX. do points throughout need know you the you growth the assumptions guys talking the Mark, call now in guys data modest total look If the to have some better-than-expected growth, think growth are

Mark Mason

Sure.

engagement think terms customers. of capabilities about is, there gotten execution critically XXXX, ‘XX. a portfolio. I some I deeply We’ve consumer across when factors So, We’ve America I that progress continued made to of the our good One look couple strategy. think in that more on of our momentum good are meaningful We’ve important client the penetrate North through to. course seeing

those XXXX And playing the into it our that that cetera. plays we as Citigold customers, with any you’ll of and volumes penetrate momentum think extent and et use products whether that customers, to grow or I or more more as they significantly, purchase even services so, we other households metrics continued through more the sales as see in

client offerings, The second Group, capabilities. bring clients, solutions in technologies great I and how with this in that. grow as allow that our capital way in we’re And there just and together second Mike about those new so you but like of Institutional and with to benefits category we improve realizing just not the to thing clients third our efficiently, times the that on call, need not things very more that with clients, that our also the way we’ve able go-to-market, those And the global but to capabilities their be that the growth, certainly run in to also continued one of efficiency would corporate not around products, number franchise capabilities, look are that management markets the growth world, product FX a but our we has then, -- invest that more just Clients rapidly, create TTS the around not as but the operations existing to to invest thing across cash onboard in but that those and is, the been clients in just think engagement seeing them discipline traction important I run referenced around think. in something a would be the would we around we -- businesses and those

be the be I have and/or at to capital, XXXX, we obviously, you range. of that and as clarity to we able end of to think, a will things where want return than things ended why combination know at, to Mike, add of you that. look the better if of that ended greater up, will don’t and sense those the up I

Gerard Cassidy

markets I scale, X just to do great Mark. that investors If example the think at like of now really similar some of Do in banks would cannot markets over No. Thank banks level most consumer you. show, for you cards and like where peers run of your a your banks acceptable. and a compete you obviously, the treasury have dominant cards even and And something profitable capital kind could regional credit to trade economies we economies credit find the cards, you credit the the scale business and example? X states, and Mike, that solutions. of shift the and of X, and capital know really answer is business, tying the community in years, the in the with summing

Mike Corbat

of top Europe, today market certainly are banks one are you’re we the think, we’re in. examples. -- nature the U.S. the that. in X in businesses, space largely in banks, fact Europe, that operating we But, different right? seeing I of the already businesses all scale are in can the And that banks Gerard, And all some by at those cite is

terms front institutional to also sure and that make ability And in matters. control scale lots build And your in of the invest, at and measure the technology ways certainly but so, your or of of Part your business. the of scale in consumer evolution is the tech you’re in stack, different business, infrastructure we business. scale to out

see think in I to space. you market continue the So, consolidation capital

Operator

JP Morgan. Juneja with Please next ahead. The question is go Vivek from

Vivek Juneja

look about point, and improvement in XXXX. on I of billion that revenue X%. of [Technical revenue $X was as a had Difficulty] Thanks. guidance first, Couple see about growth growth for When outlook starting your Mark, questions. your I you at XXXX when

are I question do is, [ph] continue, So, out you it? expect outside to what you look you the and guess any also assumptions you [Technical do for have the security this of as gains XXXX, Difficulty] to

Mark Mason

I question. really a just have hearing I time hard had your apologize. Vivek, I apologize.

please? you If that could repeat

Vivek Juneja

growth. revenue at look you When Sure.

If at on $X was a you growth, -- gains, I full excluding revenue trade in basis, look about security it you it year at year gain web on core X% look increase it the a when and XXXX. billion was

security portfolios? For assumption gains, these And gains your of are sales you look more have rates what continue, further Mark, you from U.S., outside also, any at the XXXX, to guidance, businesses Mark? deals or for or when expecting do you

Mark Mason

Sure.

of So, questions there a couple are in there.

expecting and buckets all I revenue described. growth, look As forward our revenue that think of are estimate of I’ve the from growth about we that

fact are into you that don’t are mentioned careful in franchise. of we through the in about fact careful the in I’d be answer reflect your drive just to it just underlying other There businesses. question that we XXXX, So, things. is core But that things -- XXXX. the some be looking see underlying There the kind about our what’s to what is is revenue see there. two -- growth at items performance strength anyway, just going going underlying narrowing so to those of necessarily good

than often what dollar our and be of make that the impact are at to both rates, countries material not there look In on basis-point a move, about impact in it’s U.S. our $XX will a we dollar dollar non-U.S. non-U.S. dollar. see K, I a million get look that’s to in the And for on talk rates. you’ll kind that of and is, it’s quarter-to-quarter shift your the is little rate in a XX you terms And impact less there point question forward than analysis $XX a non-U.S. different interest non-U.S. I’d to you Q basis-point our basis, the of less XX that. million. quarter an exposure around guess obviously, But rates bit up ultimately for a of if there’s number a

Vivek Juneja

small just question for Mike, recognize and I relatively business Thanks. I a And in back ago hopes increase I equities about business. you’ve finance billion big $X I prime know have this to with were it’s the business, Mike. but business, a when for the of more going some had years revenues know a couple work you headcount Recently, talking it. already in cuts. had you’ve to capital you put

do -- you’re to the again, you going been five year you’ve was the really revenue years? of end last -- do do because what can lower you ‘XX get at So, what that full where growth in now differently tangibly

Mike Corbat

Yes. like somewhere we’re other had past where several we’ll coming about wallet see We share. to where flat in we shuttles. seems taken data and and market data to years coalition But, prior the it -- the XXXX,

got to track So, the of taking share. on back one get is, we’ve

front I low we’ve got assess capacity parts touch continue the of our our to think, to that drive technology the second lower of or use piece continue business. to and to is end

we think the about derivative good feel space. I pretty

it, about returning I all are our I we And some we Delta feel around feel on of returns capital. think about of obviously that the based those drive but to the security together think, sense. businesses services good have world, share. off consolidation clients good businesses, good face feel we prime we ability One, less just again, take cases and the broker, we i.e., that the nature in higher the the in got of to about assets, we’ve we makes think against those cover, the continue U.S. not pull again, to And business as

Vivek Juneja

If I high the end to day may, XX%. from CECL the one one Mark, on one, you XX% to quick went

your or held what you a is it end? shift which that increase has that on Given also well, the business, brought something else? Is any drove up environment pretty in that economic the towards color little charge-offs card in high

Mark Mason

as through that. different the worked the it are been a end, the I’ve talked not I communicating And this balances, but was Again, no with high calls. shifts but factors model couple towards of developed I there there number call where we in on was We a just -- obviously it. our number, just into on particular there go actual think past of that guidance about change

shifts meaningful that to. point no I’d so, And

Vivek Juneja

you. Thank

Operator

Mike Please Mayo Wells The ahead. question Securities. Fargo follow-up is go from final a with

Mike Mayo

able wasn’t this get I Hi. earlier. in to

Just seem numbers better years. guidance look as it efficient implies efficiency, ahead several But, as be and for at to your last it’s and the when you improved ways, as be. we slice efficiency doesn’t could clearly dice the different it

take you cards If out example. for

the throw you So, flat do Google also the go too. relationship, on long-term? that think and the where if and can the prior does the expenses do -- help And technology efficiency in where short-term asked how had just can you much I the I in question keep

Mike Corbat

in start Google and can you I’ll chime with as well. Mark

here Obviously, out with launching to some the going in we’re the we’re products them. announcement. to with QX, So, U.S. be QX

that, to And the distant not but so, out too in of with we’re the not come exact more future. design

Mark Mason

continued page and earnings LTM on just operating got XX.X flat returns points year, would expenses the deck, just chart in we target, there the improvement. efficiency, on target a we but XX put we’ve out XX on of is the again year. you’d And this Yes. ratio, a Mike, of this say, downward kind What a basis for show we that trend out on see not of put I of the efficiency

up gearing Investor for Day. We’re

plays and we’ve from to to on descriptions technology and already. given made about sure future, the talk but that the firm you that investments going the We’ve can it to the the We’re how role think going make we also accrue we we now that benefits forward. how think some about

But, more points to a how way. proof to that Day of for where holistic we’ve continue. in XXXX, demonstrated you technology savings beyond those around about around more think Investor wait talk detail much of think, we in productivity or ask I’d terms and it about us of expect get I the kind we benefits that can we to generating consistently

Mike Mayo

I my lot. a guess, I’ll calendar. reserve May to Thanks XXth

Mike Corbat

you. Thank

Mark Mason

Thank you.

Operator

time, like over to I’d to management At any turn the this back for closing comments. conference

Elizabeth Lynn

course, you Thank all you have out day. have if follow-up for please you Investor Thank Relations. reach feel And today. of and any free questions, us joining good in to a

Operator

Ladies in and today’s gentlemen, thank call. conference you for participating

may You disconnect. now