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C Citigroup

Participants
Elizabeth Lynn Head, Investor Relations
Mike Corbat Chief Executive Officer
Mark Mason Chief Financial Officer
Glenn Schorr Evercore
Erika Najarian Bank of America
Betsy Graseck Morgan Stanley
Ken Usdin Jefferies
Matt O’Connor Deutsche Bank
Mike Mayo Wells Fargo Securities
Saul Martinez UBS
Brian Kleinhanzl KBW
Call transcript
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Operator

Hello and welcome to Citi’s First Quarter 2020 Earnings Review with Chief Executive Officer, Mike Corbat and Chief Financial Officer, Mark Mason. Today’s call will be hosted by Elizabeth Lynn, Head of Citi Investor Relations. [Operator Instructions] Also as a reminder, this conference is being recorded today.

If you have objections please disconnect at the time.

Ms. begin. may you Lynn,

Elizabeth Lynn

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

on statements, management’s in you get expectations that to today’s which started, are contain may circumstances. we subject based Before are remind forward-looking current changes and to I’d presentation and like uncertainty

conditions Actual our differ the results, capital SEC limitation, the filings, today XX-K. as section and other a discussion factors, our from financial to statements including, our including without variety well in of XXXX Factors Form may due Risk as in these included of referenced statements precautionary materially those

turn me to let said, that it over With Mike.

Mike Corbat

income the had earnings of you, XXXX, Today we’ve $X.XX. of Thank reported net $X.X morning everyone. and first quarter Liz per share of for billion, good with earnings we

continue were the Our as we show strong the pandemic, had by late pandemic and COVID-XX discipline. felt the performance in quarter we impacted by expense until shocks revenue weren’t caused economic significantly the to earnings

The credit reduced expect, would also you as However, loss our significant net reserves the two costs CECL impact standard. new accounting income. day loan reflected took we of the

engagement impacted interest it solutions for throughout strong Treasury navigate a that had Group, volatility than as by we rates, as stayed in and cuts the clients what year higher our strong was quarter help quarter. performance that and Clients strong typically the is very Institutional our to In to severe last is. trading were but business we led client business trade revenues that markets

perspective, in with deposits among Investment Banking portion respectively. revenue retail performance X% with Banking branded revenue well growth services the solid of its also gain matched grew fared year X%, we target cards X% digitally. from share another as a average the US, solid and considering environment. strong and Global to clients. our acquired Consumer In continue last in We

Asia, excluding as In of economic modestly, gain on a in COVID-XX Mexico, a from rose revenue the as during decline virus that we that one-time impacts region. had revenues limited the XXXX first saw economy the In country’s quarter. impact materialized slight

value the as equity Our to due from demand. common increased quarter, of increased a the tangible at ago. ended end book weighted of ratio We per $XX.XX our up client significantly X increased the X% share with year XX.X% quarter assets risk to a tier

public financial said, I’ve this economic health isn’t As it’s crisis, severe ramifications. a a crisis with

a revenue Although we quarter different we exited in the did have good dramatically quarter, this performance environment.

be. severity we’ve in the on loan crisis capital, and said, will no balance liquidity loss sheet virus’s very reserves, a While significant That or global one built this economy what longevity of impact the position entered we strong the knows a perspective. from

and resources We have to serve safety need the clients jeopardizing soundness. our without our we

see way, where Now, doing sites shifting people’s remote this clients to on have communities which reduce possible if I’m very becoming their to virus the Slide working how We’ve help to proud to of people perform it, a chances of I’d to people only highlight can aggressive, been they situation. going to there’s we infected, of roles the take I our remotely. can no fast-moving very our have our responded people, say spread dictates the some to we’re you things like to and our have X. moment of that

that operate way hard would very our our For of a time. remotely we’ve have to working to our in remotely in same XX% with large the example, colleagues of remotely. Markets this Securities share imagine over worked and America our with globally, well Investments people us to new last working Services working North of our circumstances week of have of at people XX% adapted technology in workforce been set allowed made smoothly such a and

to channels a our check serve whether clients digital helping investments consumer These liquidity. corporate depositing mobile a and through it’s also or managing treasurer are us a

Our investments and in markets, or in serving also large will management the in never complete commodities. risk fixed are and severe swings face economic income across us of the controls whether well downturn equities,

last well new month We’ve payment the US $X,XXX the time in who equivalent reductions reduce our tried making markets. our $XX,XXX in make a financially healthy one-time that We facing. people they’re help keep and stress of And to to year less as are to employees our the international workforce being. payments in make or halted per decided we’ve for

institutional and reduce the appliance our and the our focusing best last well on to clients are consumer announced support US. burden to customer the been segments and in know serve doing many to consumer struggles, the we’re perspective, consumers We real week a From the implement We on. positioned and additional facing to ways were accommodations quick we’ve we’re them.

we in While we Plan, our in Payroll business can haven’t the so ramping lending, up we’re Protection international consumer franchise. support we have place and player our programs a consumer been clients small relief in additional efforts large in who participate

and helping We’ve partnering are and foundations them, also corporate liquidity pressure. to whom to while groups we risk support hard We’ve served $XX in this like today coming many keeping We’re our committed the World with days. million during make have within facing additional our able impacted clients, Health Citi’s those already the been been announcements limits. support financial extraordinarily working communities support to we’ll Organizations, difficult time, of

cafeteria the our meals food banks. our last personal week for using and hospital equipment, donated headquarters workers in started make to we protective We’ve

use real with can as as they new to And mechanism broader we’ll ways economy. to both prouder. We can Our support to I bridge and policymakers a coming a for transmission we the monetary, serve keep up be everything do people couldn’t help and the Bank, for as fiscal which the economy.

will place measures count. virus will that successful to that economy too will the there be will in there put further take the many chart, government reopen forward, it. Looking restrict interventions, either or action whether leaders are The path unknowns

bear We evolve, questions. also would Mark your manage in disease you to happy But then to whatever go and as medical comes to in feel to will have the our and expect. ability new scenario COVID-XX mind, and through that, through confident a is we guidance we’d be presentations to our with answer pass continues

Mark Mason

reserves Thank net X, you, increased $X.X and outlook builds a significant included billion. reported economic has CECL losses good change impact first $X.X These reflects credit quarter estimated the larger, everyone. economic are quarter. impact This Slide lifetime of a income Starting under in Mike changes COVID-XX. reserve on to in Citigroup in billion given this increase of standard. Results this our our outlook new our due the on morning,

on markets and Revenues reflecting benefit Expenses we and gains of XX% $XX.X billion and of operating positive year, prior a XX% to margin. mark-to-market higher revenues deliver hedges operating our improvement grew the flat portfolio. corporate primarily from were lending in able leverage loan the year-over-year, roughly were in

this Credit quarter. costs were $X billion

continue over this our the quarters. evolve benefit compensation. Our reflecting ultimate effective impact incentive will health first was of and crisis with a associated the performance full quarter, outlook, year coming to The our tax stock-based XX% small economic below rate for

restrictions and as saw The earliest the commercial franchise. travel spending behavior impact we response already activity. Asia to in impact are varies in on slowed on that seeing across We other consumer our

same We’re beginning now US here seeing in loan pressure likely pattern is the which today put in the on and to Mexico, balances.

client. with across However, digital our we’re engage channels leveraging changed significantly. to strong deposit and The growth regions environment has remains rate

seen cuts a an reflect US going to more accrual as pronounced for year, Our cuts well the from quarter with crisis, businesses additional impact impact the forward. rate impact this last in response of some seen expectation as three the

has of I offset TTS, this would areas are where volumes out a clients A in choice. where is stable dynamic playing in us a been moving choice. of Although similar like know markets, partner also seen that we towards as as counterparty are partially

higher clients to facilities seeing volumes reflecting given crisis. corporate new are and loan we drawdowns our response the Additionally,

seen, on clients well ensuring maintain in them the this the side. the to employees uncertainty. And finally, that been our reflects volatility balance our corporate on as uncertainty and serve remains we’ve From as we we’ve through onset, banking strength performance sheet focused the and our market investment

XX.X%, clients through our XXst, March capital stated CET of our support our period. X was our target below of ratio As this to XX.X% efforts even

year, Additionally, stand at the $XX ratio including X.X% as over additional to available the $XXX liquidity as $X.X well on billion in billion credit this loans. we roughly adopted and we with as quarter, had of our a reserve the billion funded taken the reserves reserves help of beginning clients, impact CECL at transition support

a from hold we pre-provision capital, are and significant of operating position we liquidity reserves level earnings the of With today, power, plus strength. the

technology resiliency, allow combining support and strength all this as people, capabilities with crisis. along our manage investments and we us which with digital financial in our We’re through this given to clients operational with partner operations

our Turning Consumer now the X growth improvement initial Asia, changes were X% last to a us deliver costs up build billion, in economic Expenses in of North Total in to approximately America of customer were shows positive by dollars. the in lower reserve results operating business. partially $X.X related Global billion reflecting $X.X from leverage to was and as Banking operating for impact revenues behavior. roughly allowing Slide each including Revenues X% outlook. on grew constant margin. of the of offset flat, year, significantly credit in primarily impact COVID-XX

results the in America for detail. shows Consumer North more X Slide

X% $X.X billion of revenues quarter First were year. last from up

of our America Asia our in felt leveraged Although COVID-XX we to response impact experience recent has North in been weeks, strategy. the have only in inform

to We’re expanded evaluate the assistance that one since US needed. and starting additional in March. is support first to support customers the continue provide in impacted We’ve of whether early to banks help

enhancements strong have have to as continue and customers to our sales at $X.X addition, quarter our billion. prepared manage we this better deposit Digital they this the serving pricing. us made digital remained capabilities respond In through

adoption Zelle increased deposits of transactions, self limits for We ATM continue We made XX% for drive and mobile allow including mobile channels our to to check to more use change service withdrawals, customers transaction. year-over-year.

temporarily digitally to new are closed, areas. remain such clients, digital us Wealth the are led value now in for segments. launch These capabilities US by of new allowing with customer in even driven urban our Citi roughly clients to proposition platform lower traffic, particularly branches engaged continued emerging XX% we’ve as Builder, our a investment in as the And affluent

now the expansion basis X% spread revenue first as Turning remained X% growth roughly two Branded billion by of loans XXX through year-over-year, $X.X and driven percentage revenue purchase growth this the engagement of months to businesses. points cards of loan the Client quarter. grew with for February with improving strong sales interest net continued XX% to of a quarter.

more of well Categories extensive sales across have higher in purchase as and However, late many biggest some essentials offset travel March there declined with states. lockdowns implementation the spending as entertainment on online from been the sales. seen impact, seen in industry, as while significantly has the higher like

a grew but we expected decline significant total, month in purchase second sale to in would in the growth. the is activity the in of quarter, a So over trend quarter, line purchase loan first in which branded X% indicate past the impact cards

stronger were of Banking an billion unchanged as of by mortgage and deposit volumes in $X.X improvement Retail year-over-year, spreads. largely were offset lower deposit revenues a revenues benefit

average Our continued with improve deposits deposit momentum of to X%.

earlier, As as pricing, adjust even rate deposit to this the I given strong quarter continue current remained digital noted environment. sales we

deposit saw balanced growth engagement driving clients, across checking. strong a also with [technical existing difficulty], including We

growth to market quarter in activity. during of due by we revenues a movements, While continued grew Citigold result households as mortgage X% fees the and refinancing drove increased AUMs and investment declined

new have more and on America for spending down and related in to Finally, client as were and year-over-year the than of the March, as loan balances North average acquisitions costs. first quarter, investment payments store partner reflecting retail efficiency and year. X% account $X.X partners. driven move up expected Purchase reduced services by year-over-year, significant activity again, in at some were is including Total down savings offset were expenses pressure Consumer revenues we our higher sales loan. This billion through closures an X% lower volume year-over-year impact X% of late

of credit X% $X.X portfolio. reflecting significantly our credit, impact of losses net total the cards costs increased in both grew built reserves growth seasoning And loan changes and to quarter, roughly $X.X credit last by outlook. in billion Turning from year. year-over-year, billion economic in We this reflecting

the in uptake rates and services points, seen retail branded in NCL with respectively. basis were XXX XXX and typically Our quarter. first Consistent US cars we’ve the

half we’ve seen year. the rates higher first in half Historically, NCL the versus of second the

of on are However, given took economic back increased the to XXXX, actions to in we this due half pressure the see rapidly COVID-XX, with quarter. consistent changing NCL reserve environment we rates likely the

through In year-over-year saw X, International Asia, in Slide constant first revenues Banking Despite movement COVID-XX X% emergence quarter. and behavior. investment in and sales loan in This revenues by dollars. early On purchase the balances in business, driven activity strong was of FX results card the quarter. restrictions on declined the our most we in Consumer for of offset changes the show in customer by region, lower we

an heavily rely insurance, more saw on products face-to-face like which also impact We engagement. acquisitions customer on in

the growth earlier in week remained early deposit business this we and drive Today, eased or small signs pick for the course, of crisis. activity average other up us managing digital are to over an some However, through many at across still we as movement But consumer we’ll the quarter, that continue have past of in strong restrictions engagement a so. is in X% stage that and markets China are franchise. seeing

America, excluding improved up the Latin balances year-over-year of spreads asset deposits revenues to X% last growth And gain saw quarter, business. good Mexico regions, benefitting in X%. a also with were average grew we’re largely management in to our from total in unchanged other we sale this card. year residual Turning and consumer on Similar

growth. continue did COVID-XX a likely in from in the expected haven’t we’ve seen overall Mexico, customer we behavior as impact regions. in the see to sales we to is loan However, seen pressure will on follow see while in And other we full which March, pattern continue purchase yet slowdown

the partially changes up first in driven the quarter, X% expenses cost operating and items by well investments reflecting of to our driven in were million, $XXX our for as by by episodic Mexico, outlook. international economic efficiency impact business increased offset total, credit savings as of In primarily

pronounced is year. Slide still we first expected which consumer loss credit the X provides early. unemployment this from typically credit seasonality see We statistics, have anticipate do shows our we additional a higher originally COVID-XX in and therefore not Overall, detail it on impact the on than trends, quarter. rising global seen rates for but

is unclear the package on have mitigate efforts to stress the it customer trillion some as will note relief also our benefit of in we appropriate However, as own I well what actions relief are helping that potential as historic consumers. taking would we well I’ve both exposures, our as good risk about consumer And new noted the manage investments credit existing the to and to on including prior calls, Citi’s in of portfolios, relative operation. $X our as exposure. historical feel importantly, quality industry credit

as an If exposures and FICO you our loans look at our US end card the portfolios towards example, in to a And buy XXXX same today’s stress lower loss crisis. XXXX, before the due more as the distributions forma rates result, our higher are crisis. than portfolios last as to open outstanding experienced much of XX% than card the when we level the to XX% pro

both our serve compared In from national you consumers we our a XX%. our at in portfolio, Mexico, range average of Asia unsecured a LTV than targeted our credit maintain portfolio our see quality metrics, risk high can mortgage low region, less footprint. clearly where wider is given to clients very other as In we and

known vigilant Mexico credit not past margin cards few as managing the That is the strong more However, and example, stable margins local since of roughly we target of net which COVID-XX point over profile is NCL quality well, The in generate our disciplined than criteria generally remained of we we for of lending impact in peers. portfolio. the clients clearly down higher reflected years. have as said, in has at We the with and segment improved our this remain a tightened XX%. fully over our a crisis, time, rates credit

mark-to-market Group Institutional X. $XXX as gains was $XX.X the quarter, TTS fixed million the quarter quarter. now partially markets the to widen corporate income on impact in billion the also of of from increased hedges, Turning performance strong XX% in during lending. Slide in lower by revenues as of offset Revenues Clients credit well first bank and private loan the The as as equity and on spreads benefited

X%. of growth X% Trade interest the offset revenues and lower $X.X decreased Treasury impact in revenues and billion strong billion engagement as as and Solution in were rates. deposits down of Total constant $X.X solid reported by than more X% dollars, were client of banking

relationship to our Our a global footprint navigate enables clients. helping unique us times. that with have a the breadth unprecedented pivotal of through Even role we’re these clients playing in relationship, our

end-of-period March, accelerated X,XXX to we continue most investment given including March growth In our of adoption accounts underlying as constant robust flows. TTS, see clients in opened well while close dollars, tools. in benefit we And to in continue well our the in as were technology, of remotely, of of times we three see XX% X% digitally We business as in digitally, growth opened year. that deposits cross-border the working last in we, as digital number to drivers

exited the seen rate reported a on But mobile lower within XXX,XXX up growth begins year-over-year March year. We’ve to take tenfold quarter, users, of of users over revenues users. with see the to down the basis. the as rapid hold, in in quarter active year-over-year increased in did the full XX% a that, month And we pressure environment CitiDirect also we this X%

in in debt of the were year, equity revenues unchanged were M&A market largely and last from billion by $X.X as underwriting. offset Banking Investment outperforming underwriting growth wallet decline

clients investment However, was in I as grade debt liquidity our up environment. would double-digits evolving source year-over-year, that underwriting note helped this we

the reflecting driven $XXX lending our deposit clients volumes, rate. revenues market higher deposit partially as turbulent interest through by lower of offset activity lower of supported X%, in impact conditions. we spreads, In and bank million grew markets Private increased capital

loans adjustment other financing, well of marks average of Corporate And portfolio. primarily the to while XX%, the a new were on in support clients. did were as drawdowns increase the residual our roughly end-of-period $XXX flat, down as as million the quarter, value continue earlier, lending reflecting an we loans facilities we revenues that meaningful this to see mentioned and lease I reflecting

Security XX% billion of $X.X $X.X commodities. currencies and growth year. from to and markets rates Services revenues increased Total billion revenues year-over-year, last of income Fixed and with XX% across

reached markets actively turbulent clients. volumes for volatility, during corporate investor and and this levels, both As made we spreads period record

to were performance X% higher by deposit in Equities were reflecting and basis reported in year, client dollars, finally a spread. $X.X increase And X% up due client billion lower XX% strong up in of by including constant and offset versus volatility. a revenues on activity services, in security derivatives, revenues activity higher last an volume partially driven

roughly some operating compensation we this primarily expenses up increase economic with higher Total savings in were reflected Total of the billion credit volume-driven than last billion more X% built quarter. in in as year, significantly $X.X downgrades costs, year-over-year and as $X.X were of reserves increased efficiency continued $X portfolio. investments of from by impact offset growth the in volume billion outlook, as The growth. well along changes reserves the costs

reserve grade including non-investment the to X% quarter end, XX of We appendix portion. funded on funded the was ratio points, details roughly our our ratio of a corporate reserve on presentation. the As in basis earnings provide portfolio more

out low and points. vigilant this in we we remain portfolio reserve levels loans to corporate about the we non-accrual quarter, like consumer, see increased Overall, total today. there relative loans basis ratio managing of the our to remained credit the Total non-accrual stresses good sequentially but feel at and quality XX corporate

well impact rates, shows the asset, securities marks as widened as during year, corporate/other. the significantly Revenues Slide reflecting from the results of down $XX of quarter. legacy million legacy as XX for wind lower on spreads of the declined last

as partially most XX% down the granted associated impacted COVID-XX, costs, was XX,XXX infrastructure by who with as down by to award directly including compensation costs Expenses of well incremental COVID-XX. legacy employees were higher special being offset a wind roughly as assets are

portfolio, higher impact the on lower And loss than compensation on the reflecting security, the well locks rates as special as pretax loss loan of quarter, our was outlook, $XXX this reserves previous legacy award. million our

of the XX $XX.X dollars, Slide impact related mostly offset margin along trends. growth declined revenue of In lower and extra trading slightly an net was day, billion interest interest this net NIR. loan year-over-year quarter rates by as revenue with shows and total our higher constant

remainder earlier. net interest basis million, balance sheet. decline net with corporate quarter basis, lower by that lending revenue in On one lower half reflecting reflecting revenues declined of environment, margin the a $XXX and day XX rate And sequentially, roughly sequential declined the in the the I fewer interest net driving interest growth points the in roughly adjustment the mentioned and

to healthy pickup revenue. the in first revenue, in March a trading for quarter, of strong a in as most Turning as well business quarter activity non-interest increase drove non-interest significant in the performance

rates, more revenues expect well to quarter look reflecting we the as the and non-interest impact revenues we as from second both net pronounced As interest of quarter, decline, impact COVID-XX. to full a lower much

On Slide capital we metrics. key show our XX,

During CET our driven assets. RWA the our X spreads. ratio by The increase in customers and as XX.X% weighted support credit well volatility widening increased increase to the mostly capital market our as quarter, to reflected declined in risk

supplementary a per was dramatically value well grew X% leverage environment. tangible in to income reduced by In continue driven environment quarter, Our the our X%. challenging summary, changed operate net to in by we count. the and but book And this share $XX.XX share ratio

a strategy capital right saw to our macro good disciplined and in any client impact environment. top strongly exited these with segments feel of the manage strategy more cycle. remain uncertainty certainly higher strong our about the results resilient as line period ability and our we feel on in risk we quarter. liquidity But target on through quality, position. We global the ended We the focus We the our growth economic that is slower

adverse for full expect to me that XXXX, deliver the will performance of over And of to given with continue year. of today. With evolve the RoTCE to quarters. uncertainty we a and XX% that coming remind no the to are let longer quarter operating we rest XX% deal Looking great the all a you said, second the of impact our COVID-XX,

on will trend beginning expect the in top much our the Based March revenue and line, by quarter. franchise, COVID continue of on through related banking, the today, of in consumer particularly latter what of characterized level activity, part the the second of lower seeing we April and we’re

in revenue reflect should our And markets industry. the business, broader

strongest activity And typically is quarter in we was some first see here. normalization rate and more year lower expect levels line. clearly pronounced The quarter, environment impact the the finally, we strong, particularly will the so this the on top would of

On do this are uncertainty a we impact to is how about customers side, from that we’re the period ensure roughly that there running this. do XX% deliver we our help about as thoughtful need we in our working where ensure deploy can manage managing line through things are to resources of able the we expense couple where to being employees remotely. And for we to consider franchise continue our on standpoint, customers, important and we the COVID-XX, protect think are the the our our expenses, who of to including and are of how front workforce

support last over years through we allowing Here feel about through period, we’ve customers us made manage the in and good and are to this investments the mean. clients few digital investments our These technology.

I to of all as efficiently we possible opportunities However, potentially we to otherwise unprecedented investments created also that exploring in some also offset repay note these operate would order are as COVID-XX. times, made, by the headwinds and certain have would during

and meetings expect natural a to see also T&E, reduction event some would calls. including expenses, volume We and related

impact uncertainty the understood. well line the of impact say environment there’s we’re a pre-provision our efforts thinking that to top as of as the as sense of the how more lot So power. on will both have today, is should in earnings we hopefully again, these month but and you But give about coming better COVID-XX a efficiency

credit. to Turning

the evolve, quarter is And expect the continues losses additional outlook higher to given reserves reasonable our further. and to deteriorates a outlook our our in level do also expect we credit it as XXXX, if second remainder increases outlook. to current ahead Looking of of

and overall as to support and quality ability maintain confident given to strength our portfolio, remain in However, we our new our well stability, win the as credit our of business. continue customers

our emerge institution time. strength, our feel around that But that to economic of indisputably that objective having to and will this shown during demonstrated we clients an our from stay Citi having lived position stood unprecedented situation. we company Undoubtedly, every stated by the will world and employees and an customers are a confident up difficult strong impact and in this we be supported very

to Mike and I questions. that, are any With happy take

Operator

first is Your line question Schorr Instructions] the [Operator Glenn from of Evercore. with

Glenn Schorr

very you’d thanks us reserve is more – how I���m I’m because little partner card versus services you you card much. perspectives? reserve branded and Hi, retail bit you bigger curious for give from little think talk a the if assumptions a build about and guys. curious the behind is the – Thanks. of if could a it about

Mark Mason

Sure. Good morning, Glenn.

know, year, know, we know, and lion’s that So services, retail about focus FICO details branded to be can clients but you’re you reserves, in split you obviously on the you and case say skews between ended on share the XX, know, the and I is quite as cards’ started is $XX high right know, retail and you in as cards you higher tends certainly our you cards you scored here the in higher additional billion higher – on or that and you can turn to see tends know not page be we’ve the side. broken the with some to should in out

to going the two. bit between that’s impact know, split so a the And little you

is reserve talked quality book. billion. call, at a $XX billion, the built on you that me another tend impact again that almost – X.X%, you see of billion. can us about last total so excuse loans. one again as of of balance in What day the We piece $X.X $X.X to this obviously the to was But and I to we You about think it you terms cards point that higher but know, LLR out mean is know, we $X.X roughly to a of know, billion, gets

again, as factors of through a recession, with ones work combined of in as as obviously are But we terms instances. relates how they’re very say that of the critical a each those a two and become the run understanding two cards they know, behavior well it most variables there to the that become important our would underlying I recession, affects GDP that together important becomes important In and in unemployment, of host consumer of that probability of how you important. the severity model, all and

also retail and to you stimulus know, the been the have partners impacts that’s we have little as there, directly but out that bit $X relief unclear a introduced and COVID-XX the how ultimately that by behavior. services situation, Obviously, our more we are impacted that plays the trillion

puts and the quarter, economic the build of is end as – been change that short takes outlook billion know, amount the kind per know, you this those but of the of $X.X on lots us cards you the through based know of was assumptions you through appropriate of going it take. our the you So model, additional have straight know, for to

Glenn Schorr

on in Thank by how most just about your Okay, you’re that’s helpful been most come you, money very things where has we the talking midst need on, I’m of of follow-up some view, plumbing markets, of all you. improvement because then of like, importantly, much where to Maybe the actions, banks? you the the one I’m improved plumbing curious a government side. the it that CP, see and reserve financial less

Mike Corbat

I I of out Fed the market street the not about pieces, the would we’ve that’s speed breath the and but repo of terms and the facility, the talked of truly think now broader I this extraordinary, just volume the corporate Treasury that them in are combination the actions but at programs, facility, being dollars mean, that’s of something there the say it's money Glenn, and that the the Yeah, whether not been there. which that CP the and facilities, SBA much, loans they’ve that’s implemented liquidity it’s program main seen

that the that Treasury. from obviously to particular, economy. between question’s the good or doesn’t direct transmission banks And plumbing in the mechanism if I a the have economy played be think banks the real Fed one, And and I monetary your one because we real fiscal a of many access big roles the role, perspective, to to and think

in liquidity that can the the and And fears that markets were a see and I you funds a it of trading, early there whether how I the the was concerns of think in fears the draws, able of the was just to and lot way. the days, programs were early of terms have think gone early across money whether get board, being it fears long

I work. there still some that out need things few that think a probably there

it. as I see as as Fed on those constant things challenges, and an we to as certainly, a that to And bodies with the institution, out And reaction address we’re industry, likely the suspect able again, dialogue an will of it’s create be Treasury those. in come those

the plumbing in the and the well and had March Mark is So to, settlement, clearing, system. remotely actually late of pretty in – in that working numbers of I in I trading margining spoke working think that terms record of spite we margin volumes and

all probably we have been system X, remotely X, skeptical that we and months other all done have XX type stress, to terms for ago to would this we’re of each how of would know, in know, And the said you model going of performs. you again, most

So system how how pleased the we’ve far, quite so of and I’m has performed I’m performed. proud

Glenn Schorr

Excellent. Thank both. you,

Operator

Your next Najarian Bank the of with line Erika from is of question America.

Erika Najarian

morning. good Hi,

Mark Mason

Erika. Hi, Good morning.

Erika Najarian

– to wanted just I

Mike Corbat

Good morning, Erika.

Erika Najarian

Hi, card your statement on losses. Thank you, I Mark. wanted clarify to

I make it want interpreting So was just sure correctly. to

regulatory and losses would the financial data, that experienced. loss ’XX XX% to when I lower today, the said cumulative crisis XXXX losses You today a the than rate. add look at could XX% the up global And be back

I that could you scenario, in a card both which about see cumulative is – just the test? losses company Fed in know, and run to correctly to were sure you of with in wanted line that interpreting loss XX% we make DFAST XX% the So stress

Mark Mason

Yeah, – in would forma pro it I you take loss for to if what stress a what today said That I better which quality, portfolio back experienced XX% yes, and rates then is than sure was financial that it in mean, to you be cards see. ‘XX we that of that’s the were ‘XX, XX% the our you crisis. last the crisis what have know, is we I lower was

Mike Corbat

be on a level And a historic that’s prediction, Erika just setting it’s not I not – think clear, based data. to

Erika Najarian

yesterday, I’m they clients. Got since it. to noted in? going of the XX% that’s And where And dividend one especially their that is were and ongoing call minimum a below that serve of wondering peers line, on below payouts what stance its XX.X% in your distributions comfortable Citi’s regulatory kick bright automatic other

Mark Mason

I don’t start, why Yeah, or? Mike

Mike Corbat

ahead. go Sure,

Mark Mason

to the safety period is stabilizing our an important are if an in or ensuring role And employees, crisis primary wellbeing and view to you I uncertain serve clients, know to our know, our that you our we’re are ensuring that is, facing play think time. I customers economy. objectives, know, and The the we of addition unprecedented. an to You our think about living we positioned clearly second objective in that of look,

when clients I authorized. want ratio to I be the between to that means be of to manage below the there that needs through of that regulators pressure than and XX.X% about quarter we If our And that referenced, and think period clients plenty you the there them expected XX% clients. we’ll our for use in know, evolve, dropped like you we for takes ratio the room the of a And there’s be going that. we’re were CETX that and things, so we’re you’ve the drop still our to know, you buffer have more that our - those the And combination of our seen as for think to this. this there

it And managing I priorities so that but thoughtfully, we’re in mentioned. of diligently context the those

Erika Najarian

you. Thank

Mark Mason

Yeah.

Operator

Betsy Morgan from line Graseck is with Stanley. question of next Your the

Betsy Graseck

How Hi, you? are good morning.

Mark Mason

Good Betsy. morning,

Mike Corbat

Betsy.

Betsy Graseck

that next came and terming liquidity the markets using the wanted to quarters, you do Thanks. the from part know, see that drawdowns well of in some be capital we know, there years pay the those and associated your it clients that how you to and would into as as to deposits you drawdowns going as persistency of a or many is much I to – how deposits, relates your you it for out on be know, will, sense back think the via over them through down use months many persist helpful? the Do XX Question understand the you are to maybe expect of coming capital also think us you give of drawdowns.

Mike Corbat

at so I billion we outstanding, worth XX%, kind $XX draws Yeah, XX% about first had XX% but unfunded. so of looking of $XX Betsy say numbers, billion, the would the of roughly our quarter, or in somewhere right around

going alleviates SBA street overly call facilities, earlier to back my I terms of some in wouldn’t And in more of probably lot an the the likely of or number. Glenn, taken I think to the the main meaningful facilities pressure. I lending that some extraordinary a comment that think facilities the So that actions CP corporate of

that into reopened, first of programs was the the the to think place, think there, Treasury record believed under those there were think Fed late list liquidity. as we were And the clearly markets those I things saw it two came were debt time I there I industries stress along that a were and those had pretty you in then easily issuance bond and And Mark in good described. that quarter. bring the that saw identifiable just programs

that capital investment in in you grade access the portfolio, And investment again, markets. place and predominantly portfolio an with has programs it’s look to portfolio our when at those grade times

were we to. so shift And paying attention there. people saw Obviously something we

know, again, facilities dialogues, and second with right we draws on we’ve dialogue in I our now. seen you or feel that actually But constant coming our don’t I certainly into de see quarter, think the in the really We’re clients. minimis think pressure

Betsy Graseck

you the then And you those how of deposits it. to, well? sense and as know, percentage a deposit that give Got the of us side, deposits persistency on went into about draws can the as the you think

Mark Mason

deposits. comment bit the Yeah let on more little a broadly me

that month So liquidity the you I of of pretty were a the in we the down if about billion our significantly corporate deposits grew month in draws draws in about that saw And would third ICG $XX about not March, built us, liquidity liquidity March. know, that from And you deposits through we’re clients that know, third just break come of or attribute done. towards that it, that know, increase as a you necessarily or it’s being tied draws but issuances of we just just they’ve issuance. from

About clearing to their dealers from they from bolstered a liquidity third clients as financial derisking institutions cash. kind moving third And a and houses investor and were were then of buffers. brokered and

the look of the that are certainly of so those gives at some persistency know, a I bit you deposits access to some think a and is, deposits. view additional for that as will And part described Mike of a additional channels little of know, you for And the obviously to needed. liquidity sense inform available as what operating We mix. know, the now you you clients extent are

us and know, persist a through uncertainty this fair of managing this reference amount long long how as also But how you as heard to we’re there’s persists. you’ve crisis

So hopefully it you a sense. gives

Betsy Graseck

on CETX well. have fact your dramatically going is words, Mike, expect would you forward de I you the know, pressure, as And pull that minimis going know, it. slowed back you the the in drawdowns know, Got to

that? the how us in maybe then thinking the Thanks. a you’re how to sense context you’re could dividend? about give know, So And as about that of you you thinking

Mike Corbat

Sure.

you of where know be is room, is this, early or uneven. as the XX.X% a kind know, us lots the don’t we’re again, you about, So you – go, this described, recovery going we’re put know, buffer. we lots and XX.X%, the of to sheet you saw And thinking you gut way to us clearly balance how CETX know, think to in use saw I we will the thought but about Mark move leaving our of this from and this

Treasury. how that, be the pretty recovery. by there of continue into how retain flexibility the as lot we And well out there’s sheet? actually as we’ve able if and been one Is or we that step we it I life roles, of these said count. And do to to U-shaped? a put to a have L-shaped? I programs V-shaped team, The a is, then parts use that think uniform want would bring of situations our capacity a balance it think the question, it I is two do Fed use lot and to discounted, say we programs and own And that and again W-shaped

to So go prepared that right in let situations, we’re ratio the down.

We’re with conversations board. in our

can said know, in dividend, but feel capacity our and things know, we remained we’re things got looking the with a you again, around in committed But think you we’re that any we we our conversations as in before to going and that a comes. treat it you clear, conversations are when capacity I paying triggering time of we be here We to at of and near know, our way dividend. that terms Mark do capital we’ve get regulator lot to

Betsy Graseck

you. Thank it. Got

Operator

Your is of Ken Jefferies. from with line Usdin next the question

Ken Usdin

if couple of don��t Good A you mind. the business card more morning. on questions Thanks.

talk color this spending branded in So if any you you kind but terms just can help help from trends, balances of evolves in can credit first there? see quarter, separate would volume the know, divergence cards seeing rate of that change speaking in happened the as either services the us expect relatively in it you Thanks. retail you of we you us the or and about just you’re – what can and with

Mark Mason

I of just start spend. in don’t why the – terms don’t I Sure,

you you not you down include going retail stores, down the to any up surprise essentials spend, know department And down big to categories, week are think XX% travel in kind of it the US the apparel, know, you last down you which you about discretionary quarter spend XX%. if March, of so you XX% know, just if would category XX%. know, The you XX%, activity be know, impact cetera, of XX% was know, entertainment et will, of about us broadly and I total card you dining by the for were know, down some

got again, what to the of as happen seen – And that would We about a so, all and XX% think the have last over of has down continued I past you expect to would us just in weeks. total as you couple week.

ultimately way volumes there light would of you second to that continued there. quarter, some volumes expect of sale and on in should expect loan And the play this be through is so, we well I see most in line we the expect, would know, persisting, out top purchase as to pressure on pressure which

purchase certainly home well and including orders have in of sales drive referenced retail impact as regard services help to the shutdown large we clients But and you partner You that the of as of with acquisitions country that digitally. and temporary who and been our the as we’ve the business volumes in store as at stay well again, our lower will obviously part know, we working that results, the advise you sales we in know, have most economy a them similarly as partners our most customer closures – slowdown business. across new volume through a through a

things the take of I the some how of quarter $X and of to top said, some trillion other of store line that who lower would we resources kind of know, operate ultimately know, have economy number they’ll as they subject a play expect the you to said know, to operate you while of And you continue traffic, we’ve I You the should course, a and in relief we offerings serve. partners be you pressure have and the do to to got will relief see hold. essential that like to, course package through over NCLs know a know, that pickup second say put partner out the able year who as to do or large customer

Ken Usdin

Yeah, given is and come offset just with reserving follow-up there know card know, such and balances down, a part needs. bigger regards the just that This your is comes if that thank balance positive should you to of through – you sheet. a and you and a

question. cards for in that’s a guys to of outstandings know, with builds? you and regards how and ins informs outs that reserve you wondering and spend Just If the card specifically in how out fair

Mike Corbat

Yeah.

of know, of lifetime balances. if in into in mean, of play you it out quarter, to expected you are I probability any given come well severity how factors our as economic as important losses how on play, the going your So they’re think there view works recession, your and that recession, number of the CECL idea so building about variables and

makeup on would so, know, reserve way how that’s balance what would way the an and And have going we of those as balances those impact the move. in therefore, losses expect expect shift in and of mix that balances the and we shift, would what of lifetime a you to

Ken Usdin

Got it.

Okay, thanks lot. a

Mike Corbat

Thank you.

Operator

Your line Matt from of with next is O’Connor question the Deutsche Bank.

Matt O’Connor

morning. Good

Mexico factor there’s that might credit just markets we health, lot on you US what’s that So we’re as of soften of losses, losses? you payment kind efforts Maybe the your the in blow Asia thought of meaningful on the kind Or deferrals. kind fiscal consumer that there’s about going of the blow could what think and there’s in for some the how seeing as know soften obviously the things terms a in to underway and talk know bigger process of is here? your of you into that consumer. there you potential as do about And

Mike Corbat

one Have to like? seriously? what’s Yeah, economies in of look got they about we’ve I places as they Matt, distancing? are, think trajectory these first they response. things say, the the at it that look use put that got would of I social think these to think and stay Have that’s place lenses where question. And a government’s it the and a is great countries taking measures? put really to at health about think as, think I look put you’ve types the Have come Have work, crisis I we series all you we to of

important I of oil is on monetary what’s the third able economies And there’s things of or of what to-date, more they they at we example, think but other just think types an other potentially what’s where you look around the the exposures implement future. been of been not demographics as piece commodities to second fiscal be those see the are concentrations or piece have do into big economy dependent in and that And both capacity those or underlying the and I response. terms is that. around exports the to things,

map taking Japan. really what to seen a and it’s is that not I it And so that very region, strong over out And approach is. it really of all of the are of out I think would country-by-country you’ve US, we say in by terms responses that the

and out responses seen you’ve slower. think You’ve some I of Europe those are some seen that of

And your labeled has has outsized know and reluctant spending there type to-date. watching go is, tried carefully. our any terms question of credit to watching to the use and think of himself we’re I the on been hawk Mexico to a pretty obviously that and In President obviously fiscal he that at crisis in we’re we particular, prudent this to standards We’ve be we’re it closely. things doing

Matt O’Connor

then us, your customers. much And would to Mexico I you know, follow-up customer say, on I targeted that. is than want remind higher just base broad-based mean I in think Okay. the

of in remind maybe specifically? So the card us metrics Mexico portfolio just in you. some Thank credit about the

Mark Mason

I –

Mike Corbat

Mark, do – you want to

Mark Mason

and on focus credit I the broader to we the I know, metrics to don’t there, available. we peer What higher tend relative you to that have is appeal the do Mexico while say in would players market. do certainly that, our population

terms And different skew to the system credit FICO so, in have the do profile. a per end higher and the we of They se. system

about quarters trended that over closely And quite know, focus again, our that monitoring broader we of staying as and industry most risk do the the know, vigilant you loan been the and which peers of than you inside very in country. in have of number higher volumes parameters, as actually we’ve our past you’ve been than of fact, skew seen have, lower

Matt O’Connor

Yeah.

Thank Okay. That’s helpful. you.

Operator

of Fargo is Security. Mike question next Mayo Your from Wells line with the

Mike Mayo

Sorry if I missed part of this.

another additional maybe. Yes, $X quarter. the second no, builds ahead, In terms in reserve billion of or third

Mark Mason

Mike. Hi,

of of crisis Let me a significant that. well couple know. you make dealing here again, as with you a know, lot uncertainty to comments a One,

subject things including and again, so a continue forth would you this that that second see we lot we variables quarter, builds the how there, programs with expect a customers that the we to out on and that as meaningfully. you respond have additional quarter. in of the backdrop, would are relief know, to Even so closed I shift that at look to out you know, as know,

going quarter play And are. got that I we’ve I we that’s to you models have to not of out. of I’m rest know, the We’ve you do. mean where know, the we kind – analysis to and got

to way sense it to impact that We’ve stimulus that consumers is. have know, there. we’re you give the number to of you any businesses got to different have We that that’s continues too the to respond what how it’s in. much out early understand for

Mike Mayo

have virus And what first. I there learned mean, you Okay. the Asia? lessons was from

of a of that experience credit You should start with what and head have know, other seeing you little terms more losses have a volumes are your work ability the that banks and you and to in clients? than don’t

Mark Mason

Yeah.

Mike Corbat

so think Yeah, that – I

Mark Mason

Go sorry. ahead, Mike

Mike Corbat

you getting terms that lived lot And say you you engagement. say, that I to have remotely client closely come than resurgence think you people we lessons of terms in one some of to would in. of moves very ways, of know, took back we took people watching I of in is – And we’re that. it the of you the types know, know, people want that less the getting we home been our would in actions I in call cases as Mike, start I saw have fortunate to if a and think

how think or And to fact, very and we’ve in got so mindful that. do about how I we, when be and when

in out we’ve and consumer benign and about March first engage Mark’s us not really early and and around if putting place forgiveness some that. you forbearance programs our fees most, types things go very countries the our of see other it And all engage and some in that been can particular, think in and point in the go, of is trying them up I in to You forbearances of of programs relatively in credit far saw to terms numbers on Asian similar to US so around get talking I to engaged. customers channels terms bank in and think opening

in but reasonably of had that can in probably or it’s would February days numbers you probably again we of early, again engagement between. so of in – see and things you around the in and of the a terms Asia, know, and was it’s terms playbooks off So full that the but XX COVID dusting closely, could you some we’re March and but you in the programs know, the from some the it watching numbers ‘XX

Mike Mayo

can I follow-up. if just And

you know, third-party mean this you’re the back resurgence in, come that people back Asia? Citi in of seeing mean, in do or remote? this talked this coming many Are just is Asia. You you to And advice people know, How about and you plan are Are cases office? back receiving? up? how open medical many seeing are when you your I are the Asia employees You firsthand? working I in yet? people

Mike Corbat

not is. the terms the missed where in of Yeah, pacing we’ve you when virus this uneven in only world, least a of in terms at we the this, of of little unevenness States think But that are in got in United two where three a that you just terms to you span in have bit we of virus may of talked earlier, terms it. the know, Mike it’s

you within are people know, in there. probably we Asia And say, largely back most concerted efforts you get seen and of terms know, the China in I we’ve back to would

think two-thirds about of were rest last numbers the at of lower would and looked back yesterday, the in at I levels than Hong region of most as terms I the we Kong I that. say, of

specific terms how we’re so people very in back. And taking bring or of site-by-site a we view very

that people very where what’s the environment? criteria remote Second is virus at addressing bring we what can first that in the And that happen then safest you to criteria is, way in So, are think terms site of things that, know, back? So trajectory? – to replicate begin its are that a a difficult in the I is

Mike Mayo

But Kong. Hong that’s back remarkable in two-thirds pretty

or cautiously you optimistic much? ahead don’t that’s too read know, here for So what’s

Mike Corbat

think Again, I missed open you so it’s but business. think it, you same for absolutely know, you we’re this – of we’re place-by-place of know, we’ve you time a I understanding probably part and a at the kind taking know, site-by-site again,

right. differently, working just We’re

you accomplished of at not at that the work. not March, in the just month that we’ve we’re If look things it’s

example, remotely XXX,XXX over accessing our was at as know, we search you systems simultaneously. know, our people those one on yesterday XXX,XXX an You people time had peak of

closed the $X quarter team, You think accomplished on and have balance his Mark trillion about know, finance a the things you that sheet.

remotely. You things look all business that small all the being programs, applied at efforts, you this at submission of look CCAR, the remediation

So we as going of eye how again, time it’s same going be making at we Mark everything and in our our to to bespoke doing can extraordinary it, towards service people terms this case-by-case. clients sure we do time. be do said, And to safe. with an it’s customers And through the keep

Mike Mayo

All thank right, you.

Mike Corbat

Thank you.

Mark Mason

Thanks.

Operator

UBS. next from question the line of with is Martinez Saul Your

Saul Martinez

guys. morning good Hey, Hi.

Mark Mason

Good morning. Hey, Saul.

Saul Martinez

we get level lot in true so think much adversary. the reference me. perspective under a CECL stress adverse you and losses because with I to the DFAST so A And that’s in your it’s reserve allowance CECL, judge are whether But scenario get guys. think are first for losses do a the adequacy I the couple asking good below, of to bear questions on stress questions, of severely point please why want what nine know, you quarter you

differences know, conservative the you economic my of your that downturn. are to useful estimates is losses these severe be you will are is under estimates time And capacity but is used. beyond going The point, point the economic DFAST view of scenarios you’re in in fundamental an the the in on end absorbing point as differences And CECL, loss guesses of that, personal to estimate are know, maybe best scenario. be loans a the obviously your are data what – DFAST of losses that there like life where a over under

bank measure or be you terms whether are average you have I’m know, in sort you know, know, things the losses of curious you or methodological they those useful how or differences alone of like stress know, let things to a you of of adequate a whatever So, remaining life if terms weighted think whether in the lot should But reserves? a given – it bank you how and your calculate you or there point is. has reference perspective

Mark Mason

you think lot a Look, there. I said

I it know, and you highlighted everything a the some you think I know, is cetera, in from that et cetera. et point, like assumptions approaches differences think you’ve meaningful modeling, perspectives the reference the

that we’re we’re reference submitted think a And is experiencing we as but so a think even situation. a a point now it is living scenario, certainly a CCAR life view, from a through point. real now I you stress does what It scenario. of know, serve that’s plan and as I But stress

we that know, firm’s but here scenario that meant real test you you are we’ve to ability think I And a to stress, meant know, a withstand scenarios those got – is to inform and I think where to real-time a the demonstrating prospect in are life constantly you pressures position has put modeling our industry us ability and the losses. and withstand of real know,

that a which I new you transition what with a said, to see you see view know, you you we think dramatic environment, in interesting is – of environment. shift approach normal type is a meaningful forward in day But now again you that get of think I crisis would know, a that see looking know, that’s a view the one, wouldn’t shift. a we informed that stressed by in CECL, a timing and between Now know, – a

the by we’ll the a in ultimately the of talked you day however, reserves how do see forward to informed that. continue of what what is, of change magnitude is of the to in be what know, see out. think that that. that so losses, informed And And direct And that I I continues be two we byproduct we to in plays that experienced way we uncertainty will will by much that

contemplated again, that’s order. thus that stress you no fiscal seen response would scenario have in know, short you been amount and monetary created of know, the we’ve far response So

consumers and modeled impact or that is How that completely or customers model how run. losses not DFAST you the have know, unclear. that’s any unemployment so and of offsets ultimately CCAR we know that is not You would of react to part

yes, know, a fair real but uncertainty you expect amount, scenario. it’s managing differences data of you there’s a amount of fair I know, life a in would a there’s and now now so, light And point through

Saul Martinez

global can can missed But just that underlie their I the of it’s know, scenario. guess If it’s follow-up, sort but use adjunct sort sorry growth an picture assumptions most I growth – know or guys calculating that banks this, scenarios to you of helpful. you big I outline reserves. you’re of multiple the scenario, that. US whether you picture, one if And some you use using That’s in big these large or unemployment that

scenario volatility, you one different Does you if know, of know, know, outcomes, more using analysis it’s know, one you of case grade to the in it’s that to of you average weighted scenario scenario you to you between a change you a a whereas can if as use. change if calibrate another maybe create kind because most analysis were outcomes scenario a you opposed just your your outlook, using you’re sort big banks different know, of more use

do jumps you more have? know, would more does and and it think So – you otherwise you creates releases it volatility than

Mark Mason

our would severity Yeah, of a recession you management variables use the would you the the but many, case degrees in that do, and XX% that recession, also that’s GDP but and a the know, the other a XX%, by of a probability thousands considered we many that know, relative XX%, ‘XX like adjustment toggle XXX% and the to and not scenario, or that and of I terms model only severity we we further so of you of you scenario can informed business stats recession of the expect of was approach, severity might in be. in nature the given and factors recession what an kind adjustment whether whatever do know, are where use is say we unemployment we a that, many, know management are

at certainly model know, the we in there you put of I outlook while I we view terms best of some know, and if there, in will, flex do quarter a ones the scenario, in that have taken to the of think as So, the I mentioned the move use would know, what have in earlier key as end you – at metrics of with we’ve – reflects terms know, And of work you’ve in at in assumptions forward around look have continued mentioned those got economic you thousands to quarter stake ground we and end that point and we have analysis. those on you been we shift. outlook so our a of is even of one I – – ensuring mentioned. you many quarter we the that to may things the think view them the And capture continue terms the seen at has particular, to the and this variables of that the

know, from to CETX at XX% And and to on are ratio run to on and from of the so GDP program. scenarios we required scenarios estimated our XX% XX% and on kind to implications unemployment constantly various know, we’re the those plan important understand you XX% our losses, running understand manage properly the to declines running you metrics other that ratios and impact of find our and ourselves including ranges know, you

Saul Martinez

Got it.

Thank helpful. Okay, you. that’s really

Mark Mason

Okay.

Operator

KBW. of Your the Brian next from is question with line Kleinhanzl

Brian Kleinhanzl

XX at XX% at against It’s all portfolio. Great, that exposures, yeah, coverage hear it. non-investment you’re first but thanks. total I just and being basis with points of have reserve that the grade looking comfortable about look that you Mark, kind an the the the on ICG question quick there. you the reserve of When said you the you’re against exposures.

So takes what doesn’t keying It increase a large kind losses? you are also of amount to large metrics delinquencies in a it of get on comfort like there? seem have and

Mark Mason

in important downgrades an metric, use the on a and You important as you oil we is there metrics we’ve prices, parsed on series obviously don’t look the know, that you we are know, an an a here. case the metric, prices portfolio have view view got GDP is is know, energy – know, entire of you important metric of you ICG,

built sector know, energy for – you feel and where reserve funded mix is that’s know, so the XX for in we X.X% know, reserve reserves closer can you example you though one look the we is we when But be you example you kind of of points need X%, additional you basis ratio our know, have know, at to you know, going to that ratio. more that to you terms and and reserves as a more of know,

to lower broader the just be a highlight example, the that I the to I and you, reserve to going in broader that grade terms you closer there simple as example higher, some just some terms of you know, non-investment ratio. obviously is so, grade of in know, non-investment gave And X% bucket of similar

the the as basis points, judgment given of we you know, obviously understand can but through profile are again, – I portfolio. using So, different the XX question good are we risk the look

Brian Kleinhanzl

in And you I you the were mean, were rest March about then trending in with given revenues April. said trending regards sorry you X% already, out April? you’re there – TTS, March to worse April gave giving update that if purchase to TTS quarter, I’m how that they it and of sales April is the but in the guidance were mean, I gotten on Thanks. in the of in how any down and could know, trend how kind is

Mark Mason

around If the here said I’m card a it, down not of in different the has have across call difference spend XX% the if week the been I for for towards hand. know activity sure end across don’t but you I March, the in with I look activity the at you March XX%, earlier, categories. Sure. April. spend the last differences mix

the spend have XX% know, was for did to don’t down the the there you spend for playing terms similar business-to-business, commercial you T&E card through another of commercial card down levels the know, card activity know referencing retail see down just or of proxy that stats commercial client our know, month activity of meaningfully, was in XX% our you in I was March. and in you of card we March for April was kind again, month almost pretty of pressure consumer was pressure BXB, corporate which rate a TTS of what the of spend terms says In kind as in some about I lot base and terms

but those so, trends continue. And likely

we note QX, higher that the that as our client see we that TTS capabilities that continue them, would engagement continue, see with with would there. in of will base we saw I many see digital we our just accounts that However, utilizing good expect that that new we’re in kind very we we to including to opening in and of the expect continue, volumes

think would expect all comes new And of what large multinational to looks as norm this going continues frankly, you as with about the we’re these know, clients with uncertainty the to they evolve a we partner like. be to that it that critical

so are about top I move those Mike, rate here. comment future underlying light if in metrics will the environment, – will for on the of And but say lot drivers, move, the the firm to line will, the prospects want you a think what you

Mike Corbat

having can I two-thirds go and got just Mike’s We’ve working we’ve Hong is the working apologize number remotely. to want here. a my our still XX% close and globally and that remotely over I If in of we just Mark question quickly, staff for flipped to third got back about back before numbers. Kong out

[Mike] one So that apologize getting [ph], for I inverted.

call. that, with that think the concludes Operator I

Operator

Thanks – for today

Elizabeth Lynn

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

Operator

This for calling. concludes you call. your today’s conference Thank

disconnect. now may You