C Citigroup

Elizabeth Lynn Head, Investor Relations
Mike Corbat Chief Executive Officer
Mark Mason Chief Financial Officer
Glenn Schorr Evercore
Matt O’Connor Deutsche Bank
Erika Najarian Bank of America
Mike Mayo Wells Fargo Securities
Gerard Cassidy RBC
John McDonald Autonomous Research
Brian Kleinhanzl KBW
Saul Martinez UBS
Ken Usdin Jefferies
Jim Mitchell Seaport Global
Charles Peabody Portales
Betsy Graseck Morgan Stanley
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.

Hello and welcome to Citi's Second Quarter 2020 Earnings Review with the 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 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 our statements, results, management’s in you get Factors expectations that that to said, today’s statements the which XXXX to started, statements to are and may our With contain referenced SEC variety may section circumstances. other we Form without XX-K. turn in subject me in based Before are these Mike. today conditions remind filings, the forward-looking current changes and materially limitation, of factors, to due including, a our Risk including capital I’d presentation over and from it precautionary differ discussion let included financial of like uncertainty and Actual those

Mike Corbat

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

weighed first in credit As our cost quarter, income. net the down

management significantly. up was margin performance deposits X% the our overall our expense that grew reasonably able we've both up been navigate basis, which However, business on We year-on-year was the so The down strong X% loans solid strong at were and shows far. to the well pandemic COVID-XX XX%. and revenue growth

$X our was our due XX%. in Banking up higher sheet shift continue North Fixed to activity ample quarter that has America, growth engagement see purchase were by same an Clients liquidity to Consumer saw pandemic. increased and our recent our our capital revenues. again despite continue business. slightly bank a spending due revenues environment, to environment. sale revenue spending health Banking rate the reduced saw activity the Solutions clients. balance best revenues earnings the at Trade country substantial and income consumer strong in consumer due time, lower Group revenues Retail refinancing struggling Institutional continued Branded in capacity activity, deposit as approached we in effects quarter. and had balances. in were to low than And the and had add The exceptional regulatory We investment Cards At with And a partners. Our mix slowed did significantly from good to slowdown the be decline of revenues decline serve to client impacted history Treasury down billion. Services while towards to declined Retail more and rate from significant the and private banking travel in we In mortgage In is Asia, the the and the Mexico, to pandemic. Global

related Reserve's X.X%. common minimum was Federal on Our strengthened test us ratio our with basis. capital capital I quarter XX.X% comfortably our of This X during XX%. buffer to regulatory increasing placing new stress with from stress results our equity an leads about at pleased position Tier our the advanced the

and quarterly quarter, dividend plan to per macroeconomic down slightly We paying ago. $XX.XX long permit. share from as value only from up financial as first book tangible of X% Our year conditions was the still a keep but our

we colleagues quarter, the continue communities clients, this and our During to pandemic. through support

now limited sites clear wrong health to society. at where to office, back going consumer our invite racial Most also clients won't providing we've anything made relief While We're in was the I'd position markets drawn to areas the of to we extend continue Program or recently, capital back million a we Financial located course, what help Citi from These look my also the their initiatives. economic of And, that the by to the we of foundation. $X been people colleagues plans along businesses strong the to a Foundation $XXX through from to credit variety is most disparities We we depository first our relief $XX PPP company access to important million the more in Development, handle see partnering their facility. is number I'm strengthen in like a companies contributions million jeopardize But providing whether to even organization purchasing in recently their safety. COVID pockets Payroll And of helping profits This more data matching second their health through effort enter communities part distribution total our which sheets. it's a as we with $XX do our its program. of to our million Institutions. through Community Protection proud supporting representing direction. the support as and in net of We've donated over colleagues to our minority-owned pause lines way. comes the committed institutions to and own half loans a them of balance in our to in remained serve out what

continue the sharp widely likely for The which grip are controls has We this cycles stable point to through answer your go through no and that vaccines risk and it a an with pandemic strong loosen and models, on available. that to to be our will have to. in to investments happy a We'll management keep completely environment in until managing doesn't are economy with industry With then Mark we soundness emphasis on a unpredictable and no And presentation. seem will ensure institution. our infrastructure our safety, we questions. make to enhance to our

Mark Mason

in for qualitative management reflecting the costs in bill end billion a year-over-year $X.X economic Credit the year, also reserve additional fixed $XX.X the includes Starting to Thank somewhat quarter. of you, deterioration Citigroup in a downgrades this higher by X. and in credit and under increase outlook an and stress CECL The the of income quarter, operating in included banking billion on a first records. $X.X resulting the adjustment since quarter primarily loan slower corporate higher and/or reflecting investment billion X% level were primarily morning, prior reported of positive slightly income good billion reflect recovery. which reserve grew from leverage Mike, the net slide second quarter XX% everyone. portfolio. and this were improvement of Revenues operating down $X.X a margin. Expenses the potential

for second quarter a and investments the level higher was tax given X% Our from tax relative reflecting lower other impact EBIT. rate the effective tax items advantage benefit of

predominantly banking to net markets the we and We X% increase XXXX, revenues operating we Looking for deliver strength In reflecting the year-over-year at positive held in current allowing framework a continued operating in loans increase even reserves leverage we grew $XX.X businesses, margin. XX% us our by CECL while as first and eight billion constant investment were X% end-of-period by impact expenses half $X.X growth environment. flat number available dollars the speak which results across given billion credit of delivered of our so Deposits engagement by clients and institutional We liquidity. reflecting both and flight strengthen in institutional manage to to consumer offset position year-over-year ability liquidity strong and been with our to clients businesses reflecting critical grew serve which the our this crisis. a business. support as maintain capital has our they $XXX to franchises, to the consumer in lower XX% our to billion spending activity mostly quality through under

was reserves ratio billion credit We XXX our As stand basis loans. had to reserves this capital quarter, in minimum the of liquidity June additional the at our available XXth, including regulatory roughly points and taking funded of $XX $XXX of reserve X.XX% above XX.X%, ratio CETX with billion close requirement.

reserve the of power provision as the the partner capital, through as significant first year, operational position which through financial And to today a manage continue plus pre we With operate our seen quarter, earnings crisis. level from last of strength and us support clients we we hold liquidity half this combining discussed the we this strength. to all with we're with resiliency allows of and

were spending North significantly up related more driven credit $X and year, Slide X by shows America billion including last the outlook. in for economic the increases other decreased detail. more for X% of Banking offset declined in volumes deterioration efficiency from in expenses shows by deposit savings of was proximately than were partially and Turning And a results volume strong Slide Revenues growth now X% lower expenses Consumer as the loan as lower X to related regions. each by business. results in and build cost dollars. constant all $X.X reserve marketing expenses. interest billion the Global consumer lower COVID-XX in offset discretionary across rates reduction Total

down X% of from were year. revenues quarter Second last $X.X billion

rolled by we crisis In During sign, on impacted a and the continued focus make remaining regular our payments enrollees during many of half and XX% off of those their we second cards balances X% have mortgages. million than more provided although accounts these our across COVID-XX. quarter of have over have customers quarter customers to than to customers -- X hopeful program Since help realized same roughly relief continue assistance current representing the began, of date more to providing to the aggregate current. the we to with it

about the mid-teens. remain rates and While reenrollment below expectations

of revenues purchase billion the shift offset Turning up a starting which lower $X.X mix as favorable and X% cards. interest revenues. Cards by were average net earning Branded balances sales supported now businesses increase lower year-over-year loans were to with towards

quarter. seen in As declined XX% down the industry second sales across the purchase significantly

declined recent June to of signs However, double X% loans the we to XX% Average in a compared in April. with digits reflecting in weeks sale low lower purchase decline have seen down activity. improvement sales year-over-year

proactive proven during We a as con the line to credit Net pressure BAL second a credit actions with the actions were year. the they XX% activity. loans revenues were to X% purchase Branded the June environment year-over-year down interest pace and in Higher XX% as interest remainder in second but more the half as pause on of in of We decline month the these down Services balances similar risk Purchase down likely reduction were versus the average billion as Cards activity given year-over-year declined saw took increases drove the on well mid-teens. Retail year. revenue $X.X are believe lower partner flowing sales sale the but declines we the and higher revenues marketing result reflecting including are in partner quarter earnings in payments. of sales payments also quarter in last of loans by improvement of X% average current to lower examples.

outlook which partners, the discussed Retail retail in and on related in to and billion of Services revenues can the mix benefit sharing are quarter-to-quarter payments deposit portfolios. deposit of revenues Retail offset have based up year-over-year vary an as spreads. overall lower than revenues with X% mortgage for were we improvement arrangements profit net by As past, more our Banking the $X.X were shown volume down income our stronger

by to to organic improve nearly deposits of adjust this with XX% we accelerated average $XX continues delay with of payments, well deposits including billion. factors reduction Our quarter to even to Digital of overall momentum efforts the total payments a deposit drive as of current $X strategic the a a given rate environmental growing by and pricing as deposit our growth. stimulus continued sales combination driven in environment continue as spending, digital billion tax

strong deposit other year-over-year. saving and Total in efficiency engagement as North incremental volume checking balanced and existing grew down related expenses. discretionary expenses consumer offset saw America XX% which lower also were than reductions for marketing clients We with along year-over-year related including expenses more across with growth COVID-XX costs products XX% driving

dollar. this to $X reserves X, in reflecting cost for significantly billion Slide and show second offset in travel revenues related fee lower given lower greater sales the On constant built our of a economic Credit. levels reflecting activity the accounting and fees. increased disproportionate foreign results as for Turning in impact Asia, the with changes third-party base revenues year-over-year. in last on $X.X the of billion Consumer XX% year collection from proportion quarter by in XX% partially impact roughly revenues quarter. we In International Credit spend impact of Banking a outlook, affluent seeing from travel Total we declined of from in client region interchange XX% Asia down our a fees. revenues transaction coming We're declined purchase by year-over-year card Cards change

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

albeit quarter at at However, remains deposit deposit XX% as lower continued average engagement spreads, as the flight client franchise. strong a quality across will to this reflecting well

were with improvement management some signs down year. in net clients in were this versus purchase our fluid. month. X% to new new an But we declined investment XX% pick sales sales growth recovery and are drivers investment early moderating Today, and continued saw money net money underlying seeing While a growth in that the prior wealth up material Citigold with we in shape quarter, growth revenues June activity remains versus and show last

Turning America. Total this saw in we X% balances declined of to regions, to growth Latin quarter average revenues Similar with year-over-year. consumer Mexico X%. deposits good in other

and X the In rates lower expenses operating increased on quarter, as were trend. Credit total, Consumer this revenues expenses volume upwards trended by detail generally However, loan cost were X% efficiency current business in credit result sales reflecting environment. Global spreads well slowdown. additional as and a savings international of impacted the lower the for related purchase second volume deposit in million. lower provides of to loss as quarter Slide macroeconomic $XXX credit and down

and are the been combined later are stage were economic liquidity has much and to around spending net start used government perform modest off. improved impact credit still customers relief the early which too we is absolute and more our that and to up the uncertainty even of it early given slightly the see benefit from significant recovery more market additional buckets. balances levels. still a stimulus in is at saw Mexico, function relief government XX debt plus in programs US will pay has COVID-XX rates with down was although customer Asia, still and of of COVID-XX efforts it delinquency impact reduced improved still our stimulus relief customers the balances has loan this how rates to generated impact despite these delinquencies pronounced roll in losses. there as of once the from day although timing Earlier also a in the is on stimulus. benefiting And lower is lower the a level delinquency in the own Although same efforts significant Delinquency peaking and as of the significant still and not liquidity

XX% in were X. million Turning in and trade fixed revenues as mark-to-market Group bank spreads the Revenues during excluding $XX.X now by on $XXX in billion investment a by and loan was XX% second gain of to Slide quarter million wealth the income, investment private on and of Clients $XXX banking pretax increased as the partially Institutional offset prior security tightened corporate credit lending in on strong quarter up roughly our year performance impacted losses GTS, The hedges services. also lower quarter. was in

continue we working supply quarter, TTS, clients their optimize been to we work operations, chain across to liquidity. And our sustain the strong In through see this engagement we've our During their uncertain and continue businesses. institutional manage client actively their capital to our and all navigate clients helping environment. of with

of made actively our them markets In help and usage long-term conditions. And in will Citi volatile evidenced clients, remained capability. users sources on as quarter, we record continue We clients through our digital liquidity. clients our platform corporate see to digital relationship in deepen and as Citi investor direct by opening, with we our Investment both similar In account to our execution and to first momentum our as supported velocity short-term strong clients. Banking, focus we electronic macroeconomic further leveraging the markets, and which both we and volumes saw efforts growth navigate

for facilitate bolster additional to draws We clients looking provide to new liquidity. and continue loans

which significant liquidity continue the environment. drove to our in gain. we clients up lending. underwriting evolving we which grade saw also access led our investment end-of-period loan this However, help hope to and to corporate source decline we as sequential repayments year-over-year further And note is that I'd clients' continue share debt XXX% in markets capital

$X.X XX% billion cards businesses $X.X engagement interest to impact of strong more Total lower Banking. the X%. with and Banking revenues. solid and as in the Solutions down for revenues constant and were were deposits client now Treasury results X% Trade the in billion revenues and offset of dollars Turning reported starting rate than lower as by increased growth of commercial

XX% dollars. were our deposits constant macro in resilient volume cross-border average Our the flow growth had We significant API in strong payment slowdown. and and instant our were despite

Investment more deposits $X.X higher higher of performance $XXX a year-over-year. the X% Services, both health of growth. the as billion by as Results credit and capital higher and reflected Total highest on more $X.X quarter. last were were higher $X.X $X.X as volume, revenues changes us Market increased We offset last in up revenues significantly billion as were year the offset spread. loan operating volume debt offset and lending in wallet partially commodity. deposit underlying lower give expenses activity financial well which more delivering Security revenues cost, $XXX X% products Finance partially of franchise. XX% rates And compensation of roughly volumes as impact Bank by XX% dollars reported more challenging from revenues by and of last spread All volume market lower reserves X% versus revenues the constant lower corporate billion down $XXX Equities spreads. across than driven deposit billion currencies, down Lending reserves and offset the portfolio $X.X than in Fixed revenues XX% revenues year Total of continued of Income lower offset million and outperforming built The were savings growth well Securities by in as finally, the Private and efficiency cost revenue strong downgrades environment. Prime performance down than as billion cash of in and confidence increase investment grew of crisis. the Total million were were M&A. in this underwriting, million by XX% in XX% reflecting was in market the in were Services of of as strong quarter. was XX% Corporate and up offset and spread. Banking equities billion outlook, by grew economic increased year-over-year quarter by $X.X since equity increased than from solid derivatives more year. driven the reflected during basis reflecting

As the slightly with down reflecting of ratio pretax was detail COVID-XX. million funding on assets loans cost to loan smaller Revenues coming associated year of the marks last shows XX by tightened Expenses was the increased sequentially size gains during in basis, the non and of higher X.X% from by of the legacy shows impact $XX.X of reflecting the that mix roughly partially loan of the $XXX I this earnings reserve wind NIR balances, offset loss driving legacy our were lower down gain sequential we NIR on And quarter sequentially of declined basis rate the higher quarter infrastructure margin net cards Total expenses. episodic total current end, in points as of interest vigilant with declined revenue AFS an decline net clients deposits lower we remainder offset including our lower the $XXX spreads partially the half the on trend. billion legacy increase lower we security, as well costs this increase revenue lower the as of net exposure. the interest with driven declined assets reflecting branded on impact by liquidity more interest also dollars, legacy environment overall an significantly as offset relative net down constant wind in rates environment, In portfolio well portfolio reflecting the by of year-over-year, non-investment the Overall, the related incremental roughly the trading improved On well revenues, of and item. lower X.XX% of Corporate/Others. the offset as XX million, higher rates accommodated growth, as Slide positive quarter and reserves mainly grade. offset declined managing current Slide liquid million the $XXX the corporate results lower and XX our representing partially as strengthening trading-related our partially the from partially quarter. higher today. our environment. one-third revenues, our by We mentioned out portfolio, margin as $X.X as and absence loss reflecting a interest balance and reflecting there appendix of in of the earlier. this sheet saw quarter reserve needs accrual one-time remained by while The levels assets, net stresses interest presentation. and and roughly provide billion $XXX own by million revenue

strong revenue. performance significant increase quarter, second a a Turning to In trading non-interest year-over-year. and banking investment drove in the

As as to the look as activities. expect of in show net XX, well to metrics. non-interest revenues lower related year-over-year, third Slide lower our impact banking rates reflecting we normalization investment of COVID-XX quarter, interest revenues activity the levels and capital we On and key both decline to we

decline ratio assets. reflecting capital improved in the to CETX Our risk-weighted primarily XX.X%,

declined ratio credit supplementary tangible to of adjustment tightened during share quarter. by as to temporary Our impact spreads OCI, value relief leverage debt-valuation $XX.XX X.X% reflecting reflecting the slightly granted book benefit our per And the the primarily improved to Citi’s FRB. the DVA the

our reserve performance banking summary, build we the in well. significant acquisition client The surcharge COVID-XX We GSIB seen period has X% our this XX%. perform and During lower requirement our also business minimum by strong, the remains quarter increased test the strong we regulatory ended liquidity stress in of quarter, remains received And requirement environment and business pick a investment capital with but of challenging with digital and of including of strong underlying results and Overall of the buffer, a to up solid, engagement we In continue preliminary position. absorb this levels SCB remained the businesses. did and capital stress Incorporating environment. quarter, headwind SCB, from X.X%. this results the to significant activity, our through we bolstered a results impacted related been full while engagement. That quarter quarter. markets said, consumer lower able see a rate by the we have were impact a

third Looking to rest we continue uncertain. of to XXXX, the expect the and environment the quarter to remain challenging and

see On activity of And the core to impact expect businesses we the continue to top of reflecting rates line, to in lower rate in the consumer, and we expect weigh continued to COVID-XX. also on levels our ICG. related low pressure environment would

revenues markets expect to half. best with half would revenues investment would the businesses expect interest full the we relative in a less broader That we banking normalization or of on the year flat trends. to these are to our by net and full headwinds down non-interest in reflect slightly, back year should decline industry the result first more that estimate, Our revenues said, Based on in offset year basis.

side, expenses be to the investments slightly to these control. the opportunities protecting to and continue by down explore we feel operate flattish year. created our still to expect fund COVID-XX. efficiently making, offset digital investments headwinds we customers. and expense full and to good the all And capabilities infrastructure we focused overall, more and On particularly we to for we said on employees our That in our continue And are supporting about remain

credit. higher expect We of to current given going losses Turning a our level do outlook. forward,

offset be by should release reserves. this the existing However, of

course, relative the the Of on of in the dependent our year back the current outlook. to level remains overall environment of half reserve

outcomes we strength to up, support wrap are to in that, customers. our of our Mike to our With confident well and for overall remain take maintain as ability happy continue and range questions. to I as stability, any So preparing are and


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

Your line is open.


of pressure your cards the talking doing take Quick transfer credit remind now? apologies. portion the this what question Where that. in balance about much book we're hear Sorry portion you promotional? us of what you card that. Could about and on side? My impacting dimensionalize mentioned comments it. box Can you Sorry and to is how me might revenues. maybe the less or book on Appreciate about it tighter


light obviously what environment drive loan And This average as in we've Look, you that couple purchase Mark. sale a in spend. and we're the the back take that, morning, forward-looking less we've card less ultimately con revenues. loan through future well we've things get frankly side new a bal less you earning We're dialed is the the increase take of the crisis of know what in spending place in Good as and that of side. we're managing activity, both seen here is is balances, seen Yes. that we've interest dialed you the dial as and the and seeing as that retail on branded place. balances back marketing Glenn. like say of happens I'd light don't back volume in level you acquisitions

prudently through turns dial again. way manage peaking we balances to GDP balances of think falls. what's we're that and as up those this We've turn we turns as growing back. unemployment turns planning to there start can And those dial we promotional economy crisis start and as to get on to the around decided And as back comment crisis. kind that's needed We've important we back so meant this the the that so been suggest critically simply I is is back that that's as

as manage the is through this, way then in the it to it So was be past. we that mix the as from as to different It'll but economy you slightly pressured know important. be is want very responsive very changes which handled we


Related to All miss the remarks. if and just contrast. that we quarter quarter end where the versus there's apologies can lot do prudent, so it were at and get a economic reserves we scenario, that prepared the get That's build multiple in about the of the I I where variables wrote of fair. of the compare in can the to it backdrop the talk I Thanks. but end at reserve you second first you



and kind me in understand share Let CECL first here little then how to that quarter specifically. of important variables, bit think the a with it's we the the in the key that try second modeling. used I'll because you dimension I And approach variables we the

in got So a the we look economic of forward reserve we remember we've modeling view one the use approached use models on for those we've levels. is the we environment. to to the of as base order that And established that. way we've that to scenario CECL for approach a scenario And take forecast

that base quantitative a the adjustment severe we adjustment approach uncertainty way the of is and scenario, economic a to the reserves, slower the drives a of management to stress or for addition recovery. designed drives quantitative account that level a that which management the output prospect In in more and have of

we've or sorry and the to And so XX% plus those reserve peaking -- the specifically In both U.S to economic your quarter established how first components the in first GDP become second forecast falling to the unemployment so two quarter basic and quarter-over-quarter. important quarter. for second the XX% at the second roughly the more in in question, quarter quarter called

it recovering including appropriate whether impact maintain that Now reserves base of assumptions trending management of then appropriate that build for shape recovery it, employment recovery a a we drives fourth cetera of fiscal and billion $XX.X down terms probability is that scenario. by our of $X.X sequentially from pace so et an but possibility the and there. in includes assume potential so is XX% approach as I you fourth the needed of wave kind beyond XXXX show outcome. of page And which quarter ACL of as has what of on the then controlled, one if the the broader our or pace the adverse quarter And end see a total to to what's wave of lot XXXX. of which kind reserves, under billion billion GDP of that crisis quantitative about significant that the the third scenario up or important the a quarter that and we account the response there's through on assumes the adjustment and virus more second think roughly so downside if call or the second bring, these $X.X of at and alternative to XX additional that consider additional And but stand uncertainty and think in a about the and reserves we

billion more stressed and establish We've adjustment so that we today. so our scenario, a got that's that look very in it's base hopefully scenario more And put probability then helps. to to $XX.X a a should order severely scenario what's that's we in the specific what And -- that at stressed be. management


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


loss about Could timing a you to offs think you've large the morning. you to not to obviously bit may recognition, vary reserves region. and alluded the hit talk might of start when as peak And it when by think just and Good may start the obviously think and we when or levels will and that actually you go we but maybe entirely, speak the you about seeing charge can what that if up? might earnings

you. be on helpful. Thank thoughts topics those any would So



We are reported. look you information of -- the that if we at kind

We aren't significant seeing yet. of NCLs yet as

aren't significant seeing. We increases NCLs. seeing some There aren't yet yet are but we

say equal There you the likely year. got after kind the on checks. we're in increases up stimulus programs. the things what I building meaningful to government in these benefits. in those unemployment to we to reserves so sequentially also that up. relates will in -- would the through to losses well. next in know to as aren't we're XX and buckets, start to expected losses see are part and the yet yet fact, of there to is the year of They balances, of we're even see mind as if you We But are in aren't that the half least we lifetime They're the and Asia, think What All if delinquencies And around branded losses. see all of you'll pick of plays to likely declined or used out cards, that payroll relatively reserves middle you'll early back that towards all see it protection that buckets. many to XX up declined North start are towards to as place suggest, now the stress, is pick kind so forecast as There back XX ways get of were and those Mexico extent to keep seeing those supplement so cover NCL because consumer and to retail play prop the of declining at you've kind to things in economy In as some is that are of the the the they scenario seeing the in I you cover look side our services. year being would through they're peak those America in XX stable. at


right? that follow-up that get through if And cycle know I So level be there's environment worse, of or up kind of up reserves go the like been you charge really going continues about you're to that macro kind But the offs off we've mean is going not. built supposed to then the being beyond this are of assumes don't all all use aren't charge just using to you should but if with reserves reserves, charge-offs think CECL on a these that I always first hit. as and

maybe using go the be So the before assume a preserved backup like in is reserves I be to bit more little would terms for, up using should I'm you're for you reserves this when going up macro charge that be than you're year just yet as it not CECL, go to than but until I guess example wondering like worse of not confident offs like going charge-offs coincident right?


it be get and I economic as with to reserves as in going we're quarter been environment little bit a the consistent to and point balances. if your is economic to equal to end think related then taking so loans at going a take we act forward balances on whether the it the it be accordingly. all in view the or We're that terms view every to as better balances of to is outlook scenario a we're a to get was we've out, things all, second view of we're with going that our we think going quarter outlook take Again, and worse quarter into seeing what the third

that to for I this we think this some is how out your worse I meant uncertainty to a I that remember scenario. that when we've reserves, other question which thing for point account the prospect the management established is built adjustment, the described approach of yet and also qualitative


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


I the Good morning. that ask just the another to wanted Mark. on got reserve, but Hi. said, we hate yet to make just question from takeaways you right everything sure

the on wondering how assume to And As evaluating period? that reserve we once RNS outlook to should we done to terms should longer, manifest current the for that And you in you're you your state significant alluding and I'm are loan investors in think are charge actually start end ratio about normalized peers. have reserves longer case that reasonable and drawn reserve supportable period earnings what about think the banks building? relative your economy against starts with that off to as we of a versus


which of view on reserves. of fact way heard the we the how drives our in that I here's is plays terms a you've We've it view of the we've economy the way about taken forward unprecedented guess us I what look say obviously, established Yes. that uncertainty it crisis. is think in And the out. and in

the so but X% for balances. reserves ICG we of bank that for Now the in within X.X% half a of against about is reserves we things reserves large recovery do you. meaningful A that would we we GDP even comfortable reserves I that nearly start expect we're X%, have against by described level little sequentially the reflect the feel terms scenario in sitting scenario that the fall X.X consumer see the by to this and and those global bit quarter a of at adjustment room terms described in quarter non-investment the reserve reasons in to would loan majority quarter I extent the all to start say because against we the I a of of the management We're the fourth where ICG have, so the the sitting we of and unemployment also there drop that third levels level tied is that -- I've with I feel that first to take. at of funded, then balances $XX.X billion, see X.X% to the or would the the but would need that grade

And we'd be order cover out and started that so -- to in them. reserves play losses utilizing that to

So hopefully that helps. that


for probably the terms the fixed the for side. essentially second should cut reserves. up question year. the I we trading doing more and Citi your same we that noted wanted than And in should and to side equity of get today and on year to earlier half helps the of offline the revenues follow the normalization Yes. But the second I suspect of be half half That peer second normalized for applicable I'll in


Look, we as particular, as had performance very a FICC is in strong Yes. little and seen to up we we XX%. our for year was and bit that up the under XX% markets have last business adjust close in -- much XX% gain

strong very there. So performance

how the also about think the certainly we're half of talked what and think We terms of that in decline I'm revenues banking a basis. which about normalization model reflect kind terms that full down revenue, interest good that in part can slightly our gave on markets have -- would total full in holds to inform year. revenues investment our it to with non remarks that's show in regard speaking with expect of if normalized performance. flat a you'll non-interest in I or see to I how And revenue of I up see kind are prepared guidance in to or to and I will of hopefully back out little year that the I think, and my should a year in offset And that but normalization that of more expecting. model I we a net both the of markets will, revenues by full bit did less mention And to that performance think you our year year revenue


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


ask going knows given that's Mike I'll timeframe might re-queue correct. so too. is which questions, we little me few we of vaccine, how then will end, okay. until guidance be than the a some one uncertain a a others the But Nobody this have pessimistic I'll by a out more the that's bit back line a certainly I that the couple play struggling to if got really Hi. but at for get vaccine that is be and was

so mark, a So reconcile is I'm comment fine. to build trying everything. just second like It in sounds reserves the reflecting a are reserve the that high quarter the water that's

since to the we stimulus the that have you some had looks end we hand, the quarter other have we not and did little bit having vaccine the On worse. of wait a until if also and a Mexico mention get data

Mexico, how enough said the what's light quarter about I that my is, Mike, of as confident and question quarter are taking you've reserves built since you end. place of you the So second guess in vaccine what


Mike. you, Thank Sure.

me terms vaccine. of the just the comment of kind let So on touch in

there sporting that phase that start is things as start see and remove those or to that to normalization And into it willing just don't and pandemic and would today that around we the to We were around as exit I the as see think And there's fiscal you is anti-virus from four resurgence say am coming that I effectively didn't monetary of the growth. get that barriers in to return to or can the in we and it as kind now venue somewhere going think but As bend we see or think we're didn't third exit some I through to therefore remotely, and cases. take have pandemic see be. place. the between may describe same we all the of economy, coming subway? this ways. or global crowded of put health a we get perspective Working is actions response lifted I a a of the and to put when third to We been willing get going for ultimately of or down Am that all terms of the I population that's COVID terms distancing or the from different a concert that health numbers stabilization, stabilization, global mass in normalization either that. what we're many a containment, health to in and same a some of actually at of rates see go a different feel and the timeline have right not I I are dates, cases these me to of until get we've and don't I is of back. to place. we that on in in Containment would willing you watch think the necessarily specific to time. I that I that when actually Am a the simply broadly going stages, areas a world economy describe containment transmission same the would an not come enter airliner? vaccine realistically get put in seen right. Stabilization social like curve the broad-based normalization in event don't bucket, available

questions in think where so are some today is with out people And some there. the that in the where I market actually is number one ways struggle of disconnect pandemic. health this the terms are between in of and the ways And that things of we

seen order part question, second want different in different to just So and To do that's be in different a responses. the to want necessary in I truly I seen responses We've normalize I we've ways. to realist that. there. that what's pessimistic be think to don't of your health

think forward have your question seen pretty haven't I We is of that in economic the those been different specific approach responses in fairly by And terms for X% cases We have more that relatively GDP the and been really contraction I as the of both and speaking around seen of rates growth earlier responses other the and parts Mexico, hard the to and not forecast we right. of America think BAU as Mexico of in we US the UK being our the in that and right governments economy It's Latin world. about just is still look a think as way from forecast I we've the a we're in response forward. hit of world. extraordinary seen going more actions stages that of now some Mexico much think or of or terms part that's seeing straightforward, I it's

at into said taken hit. So we've in terms think the the in economy in have taken of I that has the been hit, risk approach, of continue and will this. going mindful we've to the terms we been be actions That looked risk of ways terms being that

felt serve in again longer Mexico. to I this well be us likely effects I think are should of but the think


last change the cases couple weeks? see in and Florida Any And the my question happening assumptions in what's was of last quarter in end COVID you part and since increase see the Texas California. in


-- When you say functions, Mike, you do what


assumption your And sorry.


we've in we resurgences have reverted go I from cases the come it spend can be sorry. what And some of in some this. protocols think the we've that these those the this stages haven't for kind that much I both seen those COVID second I'm moving seen that what a me COVID. yes, think I we population to to seen and back lives. right behaviors well round One characterize a of spend dichotomy have seen assumption, we've early right places, darkest in in is lack some we've think cases being I had done. these the of are, but early necessarily as is Sure, while want forward that say in I of of of or off needs Oh those and seen back original more changing lower spirited would states resurgence, what's And to or where free ways their in better that back the if resurgence of happening levels to I you that think think rates the see of days term with societal

average these population I to in the XXyear was the in maybe to I think and we're have of be had the in can were the there age round and it's an most down saw thing infected seeing as the it of on plus numbers attributed national in health all the testing seeing are out of or XX mass coming that actually the testing the actually cases range but and changed. second more recent average it states reports demographics the part We mid-XXs coming in one last actually average.

about Treasury this that earlier demographic spend seen kind tax seeing people payroll US But what Mark's whether protection in actually rates other but receive, this the seeing income to models I holiday again are. in it's what we're actually the a leave that even XXX good the so never of different billion, in buckets and we're I round we're is some action of it's that I payments, good back bipartisan insight. the are and kind and some down. we likely goes but the a respond the think get I some there so Fed of and say think won't on us to consumer terms terms It some at checks And it's there from I those things more whether came not and us, a the up, so that over be the positive again finishing levels think I all again people we've into seeing Savings impact but in going give in point give the comfort of are the table. think type weekend that this, the and rates of consumer look the in way able two seems obviously And think and on rates. just variations we're wanting go be roll stimulus terms in extraordinary through as as particular things and we pretty actions forward. in of to whether and the up a of terms what of areas of talked based to of to not spending just has view a actually withstand what these seeing but obviously for it's more industry on that Mike but ours and spike early things we've been potential it's we're shape. some contagion Mark the plus in delinquencies of It's


this that and here Sorry contraction in July out everything $XX.X had CECL. spending reserves billion cases now. estimate your new future some there at off; come else all now information. as so XX summary, we we $XX.X some a is your your first not XX Mexico, second losses in for billion all It's stand under best quarter that's The spike the like reflect X%


we quarter make we to The one are June -- view GDP to They're that our it's as would were numbers again, the Yes went the and quarter, I is is doing sensitive and not moved again correction of end as is different Mike XXth to of the as correction. insensitive but models unemployment. around. we one through and those as close last flashes very

those sensitive where continue quarter set are we to with absolutely to inputs of as and change, end be models is there'll the as that. reserving but again guess So variation around we my those the comfortable those and inputs are


is of the Cassidy next question Gerard from Your line RBC. with


and potential you portfolio with Mark. that portfolio, AAA now and pointed on out trends the downgrades us portfolio you portfolio slides share Mike. morning, either you to from second detail how of morning, the Good what of the some in et corporate and in gave reviewed review was need Mark, percentage cetera. us BBB Can commercial the you migration the do showed portfolio? downgraded? good for the future to And wholesale as or you Good was often us upgrades



I obviously, look, through companies reviewing been of portfolio impacted to I as timing X.X% So, loan we up some there's of we balances book perspective are couple that by more They're crisis. and all impacted this I up the that at put to by downgrades. driving entire work as did I the about quarter there constantly you good saw. we're kind obviously retails through that would we've a in and all have managed seen about energy; adjusting so the through sectors ramp actively about the estate looking saying we than probably were the the autos, We XX% continue think significantly the aviation the grade continue significantly the about that both a of we involved thousand that others. quarter through heard commercial the the see portion probably just are it accordingly, names investment and When and you in this start that think, reserve and non-investment real there, third and portfolio that think build me balances build reserves that that imagine. I downgrades do is, think the and of significant reference non-investment and grade, our to of to drove sitting retailing were and some the we've We're we'll drove reviewing sectors at a that of grade XX% extent combination

And so that quarter. go meaningful and assessment through we they're review meaningful the names and in


Is your any in with as once customers two-part you, you're you us of guess of of percentage out unemployment relief I benefits cards are again reason that And higher risk delinquencies end these carving the or unemployed. could any It's there shifting so components cetera. the of in there finding where to your the as beneficial in year forbearance. credit into a et some forbearance next later way could are enhanced up people and is mortgage of as so possibly in consumer making side, slides benefits low. that then follow-up peers part question. you the across are Very a to well good. Thank the out Is quite due receiving Citigroup over the portfolios, customers or the charge-offs what areas being of the unemployment gave you your efforts call way that they year? turning it unemployed, those to but the


Look, to but we credit unemployment with that constantly in Yes. have as specific of review terms something again and statistics. we're us that's available customers reviewing information we portfolio their our specific work the

globally them forbearance have do So advantage we of signs customers as know don't who and have took the that. the paying. still you We early of both

make about of So continue -- in they are we've to contractually customers think and that programs the XX% have relief obligated got enrolled it that to to do. aren't you XX% if the globally were payments consumer we

So almost and XX% numbers XX% globe. high again in branded and retail around in cards the

So their you're them that stat to bit other we're it running over but They is there good to remain expectation. those I current. a while good XX% little and a the sense what those of off probably the or and offering a a important to the first half is program for of time to taking get is that that sign indicator so closer gets and exposures and that and kind think trying people date benefits applying the and the rates reenrollment, the are rolled from speak of around are than in come that mid-teens to have are below enrollments total down volumes enrollment significantly, more benefiting

And re-enrollment those so But off off signs thing is of to terms fair there indicators on we the out between still now leading both the we're call remain times rolling there's of evolve. it current, some on uncertainty payment seeing between uncertainty, amount indicator. enrollment levels, good this how in continues couple we've think the which That purchase continuing of a said between to sales, programs. good continued said positive of a and


from McDonald the question line Autonomous of next is Research. Your with John


drill could consumer you outlook hoping was I on Mark, you. Thank bit for revenues. a down the little

there. outlook You continued the for the on mentioned top-line pressure

in there. sound bit some maybe XX% in you're improvement Asia, see sound it quarter you and little consumer so international but down Latin wondering a bit like like sure America you're outlook little Just in dimensioning just wasn't seeing what revenues the revenues the a improvement maybe for maybe domestic. of


Sure. Yes.

We've know that what on pressure I think line. you again just business. going and top-line be nature focused if large pressure I our in skews important see they're those consumer still a wealth look if pressure on stats in on as in and activity on those very travel of purchase quickly year-over-year on continued expect seen that's taken you Mexico sales, in the revenue think indicators future branded have I consumer our stats face-to-face look, improvement business in kind to in result Asia. the as so The mean expect and So, sales are I insurance and the for see in we Similarly, pressure of cards, light very retail deceleration. We're we'd do activity there still so to the seen Asia just continued loan card interaction Similarly see we will there. as towards unemployment card pressure -- prospect example, that's looks that pieces under in and at business the there there there's travel the continue given to and pressure a I US, of the that GDP involved. could And commented are. we in what so there we XXs segment of we've when down the we're the while the recovering the domestically. like that well that purchase think, are for and services, And continued the businesses

top-line to pressure. consumer So I some have think will continue

strong terms there of growth; still use offering. the of our engagement; in of are the indicators underlying the of in digital access think the in in I terms for us terms deposit

as we as of show come indicators going that we've signs there. including top-line But AUMs positive we're we're it to through Asia have investment so in managing And got out pressure good this.


America just to up? Latin it In finish



continued in continued of pressure this through suggested Latin from be there. There's point pressure are or cycle Mexico likely seeing a view. in in employment of in America So and addressing as They managing a on terms specifically later GDP COVID-XX some situation. Mike to we're the

consumer, I so in we good said a pressure of as top-line about going prior started the of quarters. Latin in back positioned. We be this And there's well. activity to particular lending I kind we're feel bit little where America think as to Mexico in dial That go through some

a prior Mexico from continue point I in I gain think of from the this made and some kind there to to years. reserve for positioned ground when recovers given think we're the positioned we've investments well view we're of of


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


know the lot so a big in of your just change there? portfolio operations Great. go are quick a I Mike. business piece think about Maybe Is there a you for been in to forward there's what how Kong Thanks. any about a question start? and thinking Hong and changes there? over you're basis that the And how


at region is think the just look that we you I Kong. say Yes. Brian, as can't I would look at Hong one

you've think interaction sideline and combination bit is a China you've and trade Kong. got of deal We've got that with between right. take the I it's a broader the to China; the of got I complex word would a Hong view use

of I in sovereignty specific China of around recent its the national creation in think or announcement which calling got new fairly security out significant with this penalties You've law financial is support that. of terms terms against

received part Kong we're supportive HKMA have used in to that. And place. our we support I Hong the Asian kind approach. an a and other received been in as them. say obeyed of goal we and we number government of we And the from is that those. there restrictions And I charged a to complex same we've couple of business fairly perspective, It's hub have of be countries important both and time. way One really got to that long the support that so think important laws; as I It's second there. our to found in is or from think our others the at environments Kong Hong very China think a things as And any we've of and and or haven't our all our clients. be same From mindful operate in our time local to things operating I do is would

It's attention obviously important So to monitoring being there committed obviously but are to to. obviously close things and it's something us we we're pay closely.


payments. question. retail pressure separate partner in In there some a was the And that mentioned Mark that from services

partner are those higher we expect the in a exactly? were increase those basis run fully to kind of So payments and those or rate should on Thanks. go-forward now what



know, partner number business of the profitability. partners of retail So and of that call many as we've arrangements you got services up make for our these sharing a

outlook sharing in will for year. that and of of between and quarter determine balance on partners the us our given we based the profitability any contractual So the

share we building. for the And so estimate think make profitability line. like ACLs calculating building estimate. that become that what and does been to look an fact estimate then in the NCLs when that lifetime we we've goes they that include that the share that losses them despite the will reserves we revenue so the again for profitability when from and excludes That the obviously realize account to important that we'll profitability It so reserves any we're excluded that's the note we're we partner

of retail caused push services is expect seen out we've essentially drag XXXX. the part And so beyond that we losses retail on of kind services what's that happened and what's the from

good when of I As we see early mentioned earlier, view the into XXXX. has will out losses such our come those some actually through signs buckets and to NCLs pushed in been as as as

we of the believe would this to but we for is the we at accordingly. level we've as profit the answer partners so therefore on the has a that of accounted the these of year the of view some need our expect, part profitability thus that view going As on of adjust based up the things sharing would line. sharing putting increased on other pressure evolve amount XXXX top for question, result, stage To and balance the for


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


my taking question. for thanks and morning Good

a actual cadence you to the when get builds, and your your And start reserves in and reserves loan to happens I the stickiness CECL peak know kind to works to start kind of of to into estimate Mark, happen. been I when to loss off reserves on of occur. your reserves are see loss CECL reserves on its we portfolio, charge backwards willingness And perspective the declines in back focused on what I as CECL -- we've you need So, the want in reserve that the go in guess all less quarter as and focus of release charge-offs with back every I as losses and plug pace mean releasing built you you provisions. lifetime and given think

reserves remain maybe that high not uncertainty happen bias way material we're that that the year see reserve high fairly or costs if continue start a at a all materialize we're given pretty if the charge-offs provision happening you are start quarter and whether curious have levels maintain imply the will and I'm whether even not beginning releases release reserves there's not could more credit as So or fourth levels likely -- to to even necessarily part see -- whatever of building as still for reserve to because we to while. are we and the sort next in of charge-off

and inclination things the all a have more and stickiness you bit of sort to little or on levels and kind whether we in out So the of I'm going curious think clarity the until wait world. more be it hesitancy natural of reserve will get there in a


depends outlook to of on the looking I reserves If given in second kind view meaningfully that it's still there's time it you're better, I for in it me just that that the think quarter. -- to point to have is it think to activity way know our matter, at support that we and was no other view is uncertain worse largely can mean in way And likely explain we're the adjust the the it. get like will third quarter forward-looking in third that forward-looking now through we go when we I quarter forward it that's we as or will quarter and same we the view continue to. alluding view quarter, -- if into then -- fourth the release have a a the than about will accordingly. for that

that's how to probably it's think work. I going


granular have getting the your you range there's not only I high maybe you just your still I one scenario -- guess you baseline even of or little a -- has getting potential but of in baseline that degree Okay. know economic if use change more even guess a I better outcomes. uncertainty bit maybe if it. Got a in

far worse. were factor your adjustments is some Some and qualitative would that of that form will way in assume reflected? shape that's that which or I


That's right.

or So think the about of probability I et the now recovery right. cetera. cover slower that has an it an XX% unemployment the we kind worse mean piece know that higher qualitative way as you or we implied is a impact And

speak we as would adjustment the if better we getting probability we to the so things that that think there. way And management adjust to be about toggle view should so


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


Thanks. Good morning.

job et cost and supporting optionality base you've cetera. from and that do Mark, done point about here Thanks. just first in and more keeping $XX.X very you through levels here revenue talk second you can about technology pushes billion, I got to you revenues point year you've investing billion we'll in likely half what then and $Xbillion pulls keep First you the compensation have employees, it a expected expenses, question see given $XX.X adjust a the earlier decline flattish your staff and flat though given the of to just and lower zone that level half this flat that from the expenses on nice heard


you. Thank Sure.

got a that's that managing do One crisis, we're in So we've slightly my midst that about roughly as things. I this think flat kind if takes. that to expenses part of we to maintain prepared full year you in are of guess through a the what and mentioned expect I of what is managing we're of couple flattish. And I remarks that and will our and against down puts lot revenues

the headwinds crisis that of some we've and remote I things responsible categories in way. into the that bunch are Sanitization to a So things all of people we which enhancing kind our building come employees got ensuring tailwind. in ensuring this of we're of support including are that important thoughtful capabilities, have of to a that including that those including through and all with capabilities to access for There our cost. managing equipment buildings, detection some were do support planning collection think we out fraud our not fall Cost the obviously year. different

are that doing got mentioned with you marketing expenses heard we've they because to are than T&E So We've expenses Zoom we've back. meet got me people more dialed traveling clients.

think got you've headwinds you are some net-net they so that tailwind about for And there when expenses offset that us. those but

capabilities We in efficiency we our technology, enhancing or digital franchise we've we've managed but Investment that this and proven quite cetera, then pull will et also that as have have Investments to only in operations infrastructure investments productivity revenues. that we other pull not quality and crisis. through we to continue ensure improving in and levers the that in with et investments the our do protect make. the controls cetera quite valuable that of be our and got improving we're data which initiatives naturally

the see on our we'll to in of the also of deliver number through will this accordingly. The continue yes, so adjust expenses with kind move placement volumes how that's compensation roughly year. And obviously I transaction they're get savings expenses so, they're we outlook and of will of centers levers as way headwinds and adjust reducing right productivity that our flattish meaningful how but and we and and like manage to particular the


can the a the year bound standardized. construct advanced standardized just about be? that a how vis-à-vis Thank basis as but little been points the Got approaches will anything CETX a by only focus capital. RWAs on This advanced you higher you. much the get into to RWAs advanced bit we little and SCB do XX of more optimize approach with it. bit on you've It's second question My than


driving that the what's Look, are that the we're associated a of big I advanced prices grades we're through. down of the Yes. -- with part of managing part mean kind

persist or impact to we've sheet balance and is is to the the the the actively and persuaded to factor manage. for And ways identify assets that optimizing a so here that that's got we're and likely managing in a and that to reduce of aid calculation while that headwind but CETX

I and is standardized are XX%. what out regulatory for both in point Now minimum the advances about on running that CETX at

as at And XX.X%. so an ratio we sit basis Mike at on advanced a and said I've

It this XXX period we're of uncertainty through us gives and to in a which of gives if outcomes. room So manage range front room some of that think analysis still think additional different points industry. the the that's also stress about basis in regulatory minimum, us above us we you of

were advance; way can makes where in, continue it yes, manage great to byproduct franchise. is that a serve where we for yes the So, looking to clients constantly yes effectively we're prices in and sense of that the a our


line Global. the Seaport from Mitchell is with question of next Our Jim


think Good unpack morning. been NII? bit deposits still would about to Mark, out? What bottoming understanding seeing maybe NIM kind growth your trajectory What see would would Where us just your be help deposit, -- versus thought a have you stickier assumptions Those and helpful in think and deposits. little of assumptions ours. you of -- have growth NIM? I are safety around than can things sheet kind just balance I guess how flight we of the you how the and I do do



we in deposits we've growth seen again basis mentioned look, of lower lower mix expansion in the ICG in NIM the that cards really of that's a that my saw so XX rates, position liquidity And balance some which have. is of higher opening So, reflection obviously the that and decline terms quarter-over-quarter. we kind that in strong points a sheet solid remarks loan we of mix in shift NIM combination

mentioned some banking activity of TTS to to point NIM here. continue again line cards on of I of the so back the about when see obviously And to see as slightly dynamic result, globe. that businesses, in businesses the I've are to components because rates outer our there like. pressure likely revenue the we forecast our that a and kind on to And I that likely And kind I'd think like the given to quarters lending flattish around is are see impact we'll continue I back as think that down. pressure other some you to to but total continue We're getting


just I've just mean all try balance assumption is balance curious if that's or you're the growth. heard a sheet. pressures on was base figure flattish of for to what the I I sheet further Obviously, your fair. case out some your assuming comments


out and But balance of the our there that balance sheet see see, in will a continued but demand view. the from likely they'll then be sheet that we the balance client Yes sheet see growth ability GAAP meet will the will we point be likely to by some that. driven in asset and some growth



I just beyond return you the you before to of you you Just as a it need buybacks just can't think stable see third How comments but it capital. follow do earlier think you your need can a have back quarter -- see you sort in or on Mike, returning a buybacks banks given need do up about little to capital your getting macro data. to confidently to what to position? more do is think mean vaccine that. macros, Obviously to your, do



we going loss it's as see an and economy And consumer both the we projecting and look institutional. how perspective forward I project on what economic what's on think we're based and from in like of in forward loss the feel pandemic we're and the stabilization using we timeline to do and comfortable somewhere rates do going feel my that right. about normalization, trajectory that and we moving obviously

Florida the weather maybe now that's in colder these of see So we resurgence get some into in there's and the spike debunked maybe and things others. we with fear I Texas up. that But think fall and been here to start as

the comfort we keep but what and we've a like see that that of ability see normalcy economy. we to down. is whatever to sure And better I normal over to sense not hence the global think it the that new again returning we'd this better some sense. see got a is I'm roll have


is Peabody of Charles next from Your question line Portales. with the


affects Good tax regarding morning. capital. of how your A your couple it questions and capital, your position

some that relief regulatory believe raised are the test, was capital true. issue. ratio? the I enhance as election. as if tax restart ACT the curious that Dimon finally, and in if to suggests, you tax fourth he the much buyback would position. wondering a was CARES love provided if sometime political if then was I buybacks morning secondly I Thank think you rates quarter And size going stress around CETX issue a would Jamie that your after First saw your could Biden this implied And how in forward that I or you.



terms ACT, a number is that. the significant that there think CETX our I In in benefit But I it front specific to case the that CARES of in of with ratio. me. don't have is don't associated

including things taxes the will other prospect we firm. terms that of many DTA In of the takes tax puts come rate that and to the of the the have and across and impact the with rollback

the n apologize on so have beneficial. that we math of And certainly I but don't I kind exact can been


billions But you is -- your of to add correct? I would that by NOL up by have write dollars, would


have to would of capital. We such make would to adjustments as number that a add


Go ahead.


breadth our other to piece institutions haven't is rate Charles, we the necessarily fully seen more the of enjoyed you've benefit you had. going was business US-centric have the that say, given that in I our tax the

thing be the US territorial which think a up could would go would again international it again it made the industry a view say counterparties probably it thought this and be would And US a knowing to has think or as come taxation monitoring re-begin system expect back go to back I view back previous right the vis-à-vis at some basis said as this. of system. in so buybacks the to buybacks, again relative time. to benefit. into as filing be again was in we prudence to I to view don't rate I the decision being choice we said done, of today into stop a political. not it what I blend ours that and ultimately when right US we was the begin will the on that Fed be we'll from We to time your and going when don't point, to would buybacks. the versus our and perspective as reinstate our to And we'll I the questions, global be And ahead final the there in political; is not going tax right


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


years in wondering know, back come basically you there question. $X opportunity or around represent that I is something that run of infrastructure in invested as Hi. does I'm is Good then pay morning. One couple now questions. level billion out finished, rate funding a could completed on the things other that is and the the efficiency Mexico, and for a Two investment it and quick an


announce an we a yes, did ago. So, of number years investment

is does deployed largely we We on having a or XX% mind that through in us and technology that got what's lever as probably that are somewhere decisions. toggle if that we just were and left are we And this as as we us But and investment. through like made reconsider and on out digital to do. investments we to the in take for those somewhere serve keep enhancing What these been available they think largely through our need beneficial. so have and left is to branches I capabilities building the certainly it


give you Okay I are drive really and mean that the think with US the in year was efforts with up like where and on update just the strategy not up with the on drive consumer this that to that where Google American you as into of and see partnerships announcement anything next? the flip quarter. half International the back can you kind only US? in obviously to I you around in I'm had you could I deposit but of the and an the growth and us in US deposit in consumer Airlines I some then do so the that do deposit there's in to But are here in honing to understand growth and you side growth had



excuse quarter. good the So consumer very deposit had through growth, me, we've

we digital the that as in capabilities, I play benefited see in made our we think our of customer market know, of of meaningfully as seen presence which, to both we part terms to And our you've footprint. strategy been the as leveraging has quarter. breadth our benefits digital high Retail continue base in that markets, the $XX those a from are ensure as billion has out cards that we we've investments as the and of Banking in the grow the our deposit outside sales you ended broader US we than do that in

to continue of see the strategy we so And those benefits out. play

partner expect specifically, the highlight new that side the upside as to the terms side nonetheless as of on quality that flight and of that terms is all but that markets, is, also the fueled seen US clients we've seeing things early also in both Some capture the very stimulus with was the by year. traction out was we been through delay positions, and many partnered kind I worked do payments, or to the your franchise. institutional the balance and I on in in the I've some side. would our clients where also in of to they of there from choice, closely in well existing consumer and up continued to capital to our lines mentioned of with been very in ways of quarter same tax but those their know to that that's we're earlier able whether TTS clients, consumer, we as in access internationally the I'd And institutional growth good question -- both and highlight continue of around drawing the we've where were that that we've on shore corporate liquidity it


Yes. here? I and kind it institution forward strong. that there for -- the I from to room -- know accelerate more it was that of just figured consumer of move I'm out does is wondering extremely


we we're regions. pleased the want both with the something? are seen the strong across add seeing of on growth the consumer We've here. you And But Asia. it in US, that seen Mexico, you've seen Mike, you've it had to it you've consumer, in growth in all do


Yes. Sure.

again in a our given is piece which model. coming pretty we Betsy Mark we to, with other The two-thirds, we've is number play the think obviously I spoken what -- stable is footprint, that, $XX of which consistent us, branch outside about that mentioned, from our past pay that billion very for close attention branch


the of coming growth outside consumer Two-thirds in branch the from of is footprint.


coming the is Two-thirds of outside the growth footprint. digital from branch


Your is from with Wells Mike the Mayo final question of Securities. Fargo line


say are for just so I my that because questions. be said make -- follow-up you lot like so leverage guiding flat operating then flat. so year, sounds have to it know letting year, -- earlier I but year? Hi. your Thanks said are just of you guess, positive there for no not COVID a this you and expenses costs a leverage positive and And me Mark, operating this down, to clear, this difficult


I'd repeat Yes. of slightly what down earlier I are kind expenses and which right. said revenues flattish,


equities in have as you reequification business mean was equities. with had pickup corporate your now, logic. the draw-downs and that far income Okay. I equity the as -- showed then the of I in And a and of this March with much participate help me maybe didn't activities, one markets. as guess more fixed we as lot replaced a competitors with And others. you guys

is You capital to Do about that? under expect You timing recognized equities do normalization think performance about markets. a in talked thing. How you you improve?


one is, into I break few would a buckets. So different the business of say, kind let's

was number our that, XX% ECM One into Finance, well our look would very of if equification our a Prime And performance in From a I perspective, was So -- one, not you actually again, business say you would strong. numbers, in basis. year-over-year do Prime up as but on capital markets One ECM to strong Delta that derivatives. see or that trading either was it's I good. cash see, we Delta say did It early

of in headline aspects terms we active quite in of of most So were were that the the deals done. capital raising it,

trading as Finance good so of not a strong where okay. cash terms One, derivatives, ECM. We'll performance out, And Prime performance but things and in come see Delta again, in


summary your the And went question. a course call, down. just then stock this of Through price

But maybe mentioned out You're read just move. stocks underperforming either goes the -- back that into the that there I is, BKX. there, I'm vaccine. day. much know realistic getting your realities pragmatic that about It's about more one the feeling that. of a you -- too to world and the think being I Don't

are You're still that caution NIM gives the seeing basis just comments more XX your I and revenues, you because you was interpreting maybe, talk something goes or about It specific negatively. points. the say your too just franchise to me that when others down lower.

talked the Services, you consumer pressure, to normalizes lower positive Retail expenses, being less the loan and ahead, about leverage TTS gets Mexico hurt with only won't and between for You rates, and ICG are losses, containment you no stabilization under have we somewhere payments, come. and COVID, buybacks have some operating by partner time

So summary in negatives of that's you the those that of all -- some had this are call. a

was maybe was that that or intentional. maybe unintentional So

like kind this digital say maybe the the rest or last positives to world. is other that differ the deposit or camp and going where the a from to in on of like either a growth So what, you or actually chance know banking road things I'm be side, is of you put some to this long with


would intention off that Mike our I negative. it be start to not and Well, say is

the in it. seeing think outweigh together known. the we has are to very And see ability half I I X%, would this expenses certainly CECL, months, our love and the I what that wide the under But think from new four engagement ball, described we're to reserve challenging format absorb the what somebody would is scale clients. of unknowns crystal and we've say I XXXX revenues or ranging significant all up if broad through coming of first with builds flat, our

they've of will half back as unknowns. had the very in where you second has that we've And build the continue in take resurgences we into where unknowns think of I settle US are share, don't to liquidity and are numbers the the the continued And approaches and they about we're seeing The the how We going see rest is to been the feel come market there, places and world to capital, know. good that continue year. up. the to uneven build been we in continued cases and we've uneven. in down, we're

we behind our we need we our prepared that that pressure certain it seen people you've across this think that well been world again, And so far. we of be we've want what this. well is it. rosy the bank recovery. worst an will like really we see any It's absolutely to they've will V-shape of see anybody positioned don't under would I I will leave very path see all W. us thinking is great simply But earnings say it's in the And through businesses And proud should feeling to a simply V, against a the this I'm a view institution, we I areas, managed And U, with as have in very But terms call go team call done. revenues think and while leaving again, feeling don't ahead. in the of so and place quarter is deal

we unknown. The environments So are feel good where about are.

think I far have we're I spot think on. taken the well the future positioned And for actions so what been we've brings.


your review. second Thank today's concludes for XXXX quarter participation. you This earnings

now disconnect. may You