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C Citigroup

Participants
Elizabeth Lynn Interim Head, IR
Michael Corbat CEO & Executive Director
Mark Mason CFO
Jane Fraser President & Director
Glenn Schorr Evercore ISI
John McDonald Autonomous Research
Erika Najarian Bank of America Merrill Lynch
Michael Mayo Wells Fargo Securities
Jim Mitchell Seaport Global Securities
Matthew O'Connor Deutsche Bank
Betsy Graseck Morgan Stanley
Kenneth Usdin Jefferies
Christoph Kotowski Oppenheimer
Charles Peabody Portales
Gerard Cassidy RBC Capital Markets
Andrew Lim Societe Generale
Vivek Juneja JPMorgan Chase & Co.
Call transcript
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Operator

Hello, and welcome to Citi's fourth quarter 2020 earnings review with the Chief Executive Officer, Mike Corbat; incoming Chief Executive Officer, Jane Fraser; 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 any objections, please disconnect at this time. Ms. begin. may you Lynn,

Elizabeth Lynn

Good thank Operator. joining all us. morning, you, you and for Thank

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

Michael Corbat

and everyone. Thank you, morning, Liz, good

call my Mark. on to I'm things will differently comments the little is bit she last this make and been sees Q&A, turn transformation Given over how you, I'll earnings do strategy to our open leading some we're up a before we speaking, evolving. it After going today. Jane with she's done And to

of a $XX of increased in course billion pandemic we strong billion result as year $XX net billion the over get go XXXX to let's with the fourth year. the reserves We impact doubling income share the over the the had quarter. earnings So with tumultuous ended by CECL. of with that, started. credit per We and despite ACL our a net a and income ahead $X.X and finish Overall, of of $X.XX in of

to impacts durability strength the of were our diversified globally. massive of economic of the revenues despite our sign a XXXX franchise, COVID-XX and As flat

our the base. growth in deposits in throughout were and as we're significant see value that nearly deposit clients year, the we franchise we supported seeing up XX% Our the

Turning fourth quarter. the to

highlighted X% saw standout by slowed was rates the increase. Trade our Bank as XX% the Investment well fourth Banking activity saw as X% revenues with continued have decline up the markets Group Clients from a impact a a Institutional which revenue they Private although low to Solutions, XXXX. Our Treasury and businesses, year, and throughout Banking performed of quarter

revenues. to Consumer pandemic, by Banking And in deposit this Our environment. mortgage revenues U.S., see retail region. we impacted was business we saw in In homeowners We continued did exceptionally refinancing digital liquidity did in down In robust from the our continued Asia, card loan rate in every benefit our clients. continue be see with wealth pressured our to saw although momentum growth again, as the high ultra-low opportunities spending capitalized very deposits. well but volumes In serve performance remain we management. Mexico, to lower strong

minimum ratio increased Tier regulatory our equity Our XX.X%, X XX%. common well to of above

quarter. Our from year current value And can to Federal to we plan and share ago. during have as tangible share to regarding the shareholders, resume book return per we capital we we a increased excess $XX.XX, repurchases buybacks Reserve's up the X% decision welcome

base, through consumer bank a they our our reestablished we the retirement there's working very significant at way half, the to $X work part go-to more the of network. in faced regulatory the most table billion serve count our We're always end became upcoming looked Citi our process. transactions. have bankers our I'm generating digital, legacy shift to we our in our Citi from our I than and seat XXXX, than our of of a I dramatically while has a my world And of recently and Given were global can place the October during we've to capital XXXX. through when We matter the by capital our proud be do, a to CEO. business our assets we since the and in accomplished. in, more the throughout No in shareholders. what different clients some so capital $XX DTA at what for embraced institutional We've reducing as return of February, We served. you're by reduced fundamentally We've to challenges streamlined of the increased $X.XX XX%. capital the firm share want over We've clients dividend billion returning of went from optimized

pandemic, quality consistency on of equity. the return significantly on our and our we Before and the our assets had earnings, improved return

to year a pandemic, a get decade while of couldn't through go strengthen result of through this than to ago. year. of proud even them last I'm I we've and in this ways, my our be extraordinary crisis prouder. did many shown for helped And us I that As would work events the fact the results stronger, CEO, what year unlike the financial the the aren't we more All we a can firm emerge be have wanted as

pandemic, these weeks. relief economic efforts, of program States. the such matter $X of the billion accommodation stood up We close throughout hit. a we And strategic showed you $XXX increase to of just in Just Floyd, clients grants for also when made We equity higher customers, and donated $X for pandemic basis And a context, the by for gap we racial the XX about mobility In come. XXXX. let's of XXXX. Citi compare announced our billion how million the We the help common we first point XXXX our to program and COVID were return assets is part an George return had launch to year. business murder a far on communities. more just we United we tangible small aftermath points in profits nearly shows our consumers of in than in what in a wealth the actions XXX our firm bank had in XXXX, and basis on the serving and That to year lending has higher net income,

as firm she excellence all about there's operates stakeholders. our do to prepares She's environment through control presentation. I going and said, our maximize and to everything Jane the do. for take can with to of of she'd herself strengthen always area. risk that, launched move is know firm and Mark really But the I the benefit I As returns more every we've over. into in to go ensure feel Citi to forward the transformation the thrown With good

Mark Mason

fourth and Revenues prior billion. of income morning, Thank everyone. on quarter good declined Mike, Slide net Citigroup from $X.X the reported year. X. you, Starting XX%

down more offset by combined along engagement by losses strong control constant as performance $X.XX billion, in including levels and of higher $X.X lower up by spending higher driven as neutral activity supporting consistent year-over-year, repositioning quarter, primarily for billion with and impact macro higher savings cost along was in environment, well risk consumer offset as dollars, reflecting EPS with the across clients adjust base improvement losses spending and XX.X%. ROTCE were in $X.X was roughly this year-over-year. in costs strong, consumer. interest we rates reduced as ACL transformation, remained infrastructure and of the X% in look with release XX%, of of was of lower continued And remained In credit to well grew with an our than was trading an loans lower scenario. liquidity, our institutional as areas. Credit corporate Deposits investment end-of-period targeted sequentially While Expenses these declined capacity and rates repayments our as consumer activity. reflecting year-over-year, client consumer. building credit X% reflecting were

we increased $XX to year the value year We Turning and and reserves of by grew roughly even throughout despite solid tangible billion. ended results. full with the we delivered income the strong In book net performance billion, as $XX with over year. capital XXXX, liquidity pricing

continued we noninterest X%, included while as revenues line, the higher full year by in Expenses significant had line revenues. the increased decline revenues the a in in expenses interest top COVID-XX-related with the pandemic civil fully invested our the impact, with offset penalty transformation. revising also impact XXXX, a Results we the also as in in quarter reversing collection and net flat On with efficiency to provide third of money guidance reserving held accounting corresponding we increase Slide neutral third-party year-end. for offset on income detail savings. On earnings, includes fees, lower benefit Full to determined net $X.XX discretionary spending actions. previously a and capital to by X, retained related the year EPS opening additional

a of credit economic these lifetime our to as tied well base provides losses adjustment for As outcome. a for a a more scenario possibility specific for adverse the management uncertainty, as estimate which reserves reminder, include

still evolved. nearly for adjustment $XX although outlook, believe we shape at primarily pace recovery our reserves, of roughly credit our note, Our hold reserve economic the with today, that management to macroeconomic billion are release loan. reserves quarter of did for reflects positioned the funded an uncertainty X% in Overall, losses the which allowance this is looking I represents on and we we well add would as we improving

the Turning the Institutional for now Slide each Group. business. to shows results X Clients

X% as outlook were $X.X fewer The in quarter delivered as from in given revenues GDP X% primarily release. For portfolio. quarter, costs margin reflected and in investments $X.X on for ICG a the increase credit release expenses, this EBIT the while billion a XX% ACL and lower down infrastructure in last reflecting of well primarily controls, the year. improvement downgrades Operating up declined considerably global billion,

was reserve million. losses portion. our quarter on overall funded of X.X% ratio including credit Total As were X.X%, end, net $XXX noninvestment-grade the

with for this as growth, performance XX%. return offset Investment for Revenues Clients year, positive a the the results, the in ACL And Banking year and given Looking the ICG the declined Lending. Corporate full revenues lower EBIT year, in growth trading year business at and revenue margin TTS, on has well more Institutional by shows X build operating full in XX% X%. delivered XX.X% fourth capital. revenues But strong ICG performed Group this leverage decreased quarter detail. ICG Slide of X% allocated operating was

cross-border side, lower broken significant impact although reflecting revenues of lower and spreads, solid driven had lower favorable year, in the dollars, in commercial underlying in the and constant unchanged slowdown, saw Services, X% were by and up up Private strong reported declined digital growth XX% lower Securities deposits conditions. solid Investment rates on Total from revenues transaction market note down higher higher despite market drivers higher driven Trade with XX%, in equities, new average last equity and from with underwriting more and M&A and X%. deposits partially down a cash XX% XX% basis, as client but and revenues by we in offset partially were higher cards record over from commodities as finance, under strength the settlement grew entire solid in revenues as up debt offset XX% costs and volumes deposits, derivatives spread by revenues lower and prime constant global grew Treasury driven lending. in growth and increased were business. dollars and were last Income as existing On and across revenues Banking lower last by X% and in Securities X% across more volume. finally, revenue. engagement year, were revenues as lower the revenues performance Services growth down spreads. that by than constant volumes were client revenues X% revenues year. offset and Solutions volumes investment increased by performance interest and a clients in in quarter Markets our clearing. than more underwriting. volumes improved macro adoption, And client revenues Fixed were revenues well X%, were Bank rates engagement products banking and and offset higher FX strong reported solid versus and currency, managed I good by Lending assets as revenues in capital were we would as rates X% Corporate custody Average in dollars growing was Equity hedging

these full-service across global XXXX, our given as to across uncertain Citi our engagement institutional of revenues in the client including we a positioned strength strong choice. in year natural to deposit new we full better as even creating markets helped year, benefits our this additional from XXXX in and growth solutions contribution in the this and exist driven see share capture Banking digital using we've and to with our clients increased the year, seen allows their gains more fully adoption, through solid our businesses we're of And Bank. of clients significant Investment Private client For us actively the model, Throughout ensure engagement, navigate XX% by that as franchise. platform, the platform environment, all recognize progress continue along given digital this which momentum key linkages year drivers, the

the Turning now were results GCB on billion. delivered Global deposit dollars consumers, card offset Management we continued Consumer XX% momentum more declined across did X. regions. volume interest Revenues as North sequentially for Expenses rates X% repositioning. and said, by Slide EBIT mostly Banking and lower lower of this than to Wealth in of higher driven America constant strong in $X.X by see all signs across quarter. That and international stabilization increased growth both

to in at XX% year, impact led North significantly as in XX% seasonal in as the quarter to reserve remain under lower in X%. and a costs And sequential quarter. looking and reflecting average were momentum credit delivered ability were regions. sequentially down EBIT flat X% overall volumes down consumer but have And sales of still we Total pandemic in year, were our down the recovery consumer loans. increase purchase not and America Excluding detail. by CECL. ACL this grew from liquid, seen expenses from the reserve see revenues loss, grew savings. billion, improved lower decreased builds more with rates we're same Credit both on stress lower but the as shows spending as higher activity time, coupled drivers efficiency At an year-over-year. revenues net and offset reflecting on the payment Branded GCB largely continued repositioning as down seeing results, $X.X full results pay. basis, year total delinquencies cost an lower in for X sales were yet positive revenues well release their all consumers costs, fourth Slide COVID-related Purchase cards of GCB X XX%, we were last last did

XX% purchase higher clients quarter-over-quarter. products going in and Net results for So Slide continuing recover, deepen growth were Retail Banking while our relationships in average year-over-year, opportunity drivers also in payments down growth strength to Banking and purchase On the our XX% dollars. continued lower assets We in and, and reflecting declined than our Citigold quarter. Average revenue year-over-year. to revenues sales in year-over-year Asia, Overall, partner balance. revenues X, good sales improved, the growth as and feel on spread. of strong invest digital client billion drove down therefore, last pressure higher these the purchase growth offset average services versus well $X growth were the fourth management with branded as were grew digital as including with lower declined down the cards, reflecting XX% continue loans are our as more Retail has with remainder increasing revenues we exit wealth checking. our activity activity share. lower were revenues activities deposit sequentially but deposit continued rates. us year, paying we year-over-year XX% as XX% down lower impact higher we mortgage XX%, year, decline management. Similar We saw remained down drivers X% underlying in in XX% to payments. Higher by the in higher deposit as revenues year-over-year on XXXX interest Consumer in deposits momentum constant of wealth losses resulting by more and XX% payment up income loans management quickly, continued loan forward client we and sales deposit growth show were in In capability. significant partner deposits giving engagement XX% to International grow digital spend under saw about underlying in

at albeit good investment deposit deposit region. see significant to the year-over-year wealth continued and revenues pressure growth XX%, We a remained X% XX%, in impact purchase management new lower in Citigold with a remained sales net down at travel average continue XX% in money. strong Card under client revenues increase on XX%, spreads. with growth momentum grew And as given in

did sales see our we expectations. in quarter, this in improvement sequential However, with purchase line

revenues XX% sales America. we Latin to improved and Turning average deposits this Total declined up quarter other Similar year-over-year. XX% in regions, to good purchase growth sequentially. in saw Mexico with balances

volumes high this downward in Credit trends. generally U.S., and continue additional given remained global given under the of quarter, pressure the spreads credit program. rates consumer macro spending lower and liquidity decline deposit relief levels detail trended lending loss environment. to XX the Slide on benefits However, of provides

However, concentrated increased, off driven our in year-over-year more relief that the expectations. relative and rolling rates loss programs modest regions to stimulus rise The programs in in by in Asia, of the those delinquencies in mostly with relief credit outside these levels line exited accounts U.S. reflects is accounts U.S.

gains. rates, continue Mexico lower we lower should to we seen, rise begin the timing the to simply in the is out of of closely. results we out recent and Given peak Revenues recover from the aggregate year, shows of total absence XXXX, last margin legacy significantly In losses were roughly quarter, ultimately in continuing flat the management Expenses and And remains XX net risk roughly wind-down $XX.X line Corporate/Other. pretax control. and was episodic be Meanwhile, interest million loss expect for $XXX impact of losses the today's as of in are rates the margin in declined now and outlook. prior do trend legacy trend. to Slide revenue first will by matter assets half billion interest to basis XXXX dollars, it if revenue points, stabilize market of reflecting in Whether net wind-down something it's peak interest shows be pushed and NIR. of partially this to delinquency a offset flat XXXX. or our to net balances, the and the to begin of strong losses $X.X investments expect Slide lower declined sheet loan impact of stimulus, declined push and reflecting watching constant XX these U.S., net our assets these result lower infrastructure, trading-related in thereafter. the the impact in and losses revenue the half to balance Asia due to trends, was billion with roughly the revenue to quarter. growth. expected offset while interest occur expect and we given deposit to And net excluding loss Sequentially, of expansion first interest continued X quarter during and year-over-year, rates lower reflecting third to higher

non-NIR billion, year-over-year. quarter, X% over activity Turning noninterest to given consumer just declined in fourth of lower revenues to levels the $X

full Turning by by year strength in metrics. noninterest to Slide capital results. as in fully investment the higher were decline as the driven performance Revenues show year continued revenue well XX, we offset key markets throughout net in flat interest strong with revenues our banking. On

ratio or increased basis capital regulatory above CETX our XXX Our points minimum. to XX.X%

grew our per driven by ratio tangible net X%, book supplementary Our to leverage X% share income. by $XX.XX was and value

it let our I spend XXXX. Before on for to hand few me back outlook minutes Mike, a

to in billion the half largely revenues to full revenue market continued it by some somewhere to basis, to plays down interest of saw outlook year, base expect similar an we between would can out, range first in with more the mid recovery. our improvement interest the this And growth net year case, year. market. assumes loan XXXX half single-digit line, revenues This for in stabilization how in this back versus top the decline in XXXX XXXX. extraordinary the net And by this the performance year billion $X high degree in assumes a wallets of which assumes industry point that to driven specifically, subject we the $X On in is year see On an and levels. normalization

range of related by driven side, our investments X% expect transformation. year to expense the mostly increase we to full X%, expenses in On the to

the be of we And Our roughly XXXX. cost year. credit for should rate lower of a meaningfully than XX% expect tax

XXXX, see together, Mike we to the So quarter. credit pressure Board subject pulling costs, But still we forward earlier, to mentioned of this I the should To wrap margin significant operating quarter, book expect at as move up, relative look the given XXXX. we sit liquidity through position. balance this approval, and lower strong. it great look clients repurchasing today and significant customers, we strong how Overall colleagues, shares improvement focused of give and we as profitability value to as year. And in resilience here in XXXX, demonstrated starting We grew this finally, we with Mike. hand which XXXX. to power remain let me engagement franchise. With supporting of capital of a remains every back on we and earnings We community, that, all into me deal confidence client performed

Michael Corbat

Mark. you, Thank

can Now to for few a over minutes. so Jane, from her I'd you it like to turn hear

Jane Fraser

to get benefit of institutions. our regulators' our meeting we of still this expectations to Mike, risk program good embarked important investors this end helpful opportunities me his extremely CEO and working and control thank as step by the to the to regulators. environment through for pandemic. to will I well our of you, determined significant clearly been for obviously with everyone. him into We've during as seamless closely one and have on by I the was a globally transformation firm, clients and at to want and me support address and world's that excited in the most Citi prepare of role deficiencies Thank that to course, And am been raised Mike has so I ensure have has ahead It I to transition. equally our financial for am the a transition tremendously the February. as morning

refreshing folly has X returns will is position My so I as to the effort win, transformation us we our adaptable. surprised strategy major we by we remain best-laid address best the While vigilant so end sight, transition are hope taught to to Mike ultimately of our with in and priorities us regulators. and and two this raised things: Citi significantly our and achieved plans, issues virus improve the our

underway. it's While well on our is days, early work these priorities

processes. transformation, the back, accountability the work critical our implementation target So executive cause team. the we detailed talent. culture our to take specific strengthening plan. to will Together, to the by time in state; and the and May, a and February, for gap member This investment streams technology have detailed taking the us tackle simplifying modernizing bank. target creating We of are the to on root controls, and data step business work there. our we deliver in we're Each we will led accountable analysis in on risk is a develop against significant issues, In stream require excellence also to and define it state and and and effort plans of put place get the end will on management time and compliance, but streams

of businesses. number valuable controls, invest capital end achieve in clients. the to at and risk Citi our me last of years. our in benefit Nonetheless, and to At our see You time is transition day, of a results. to our we and strategy. the will you, giving commitment have strategy this in and we that over have will I our wisely, a businesses benefit operations that back regions the from clients my service regulators, in a in and excellence Switching XX our and step all worked look the dispassionate state take of the and and want back your to the having

with this we rather at You stage, about out can but early this. wouldn't how expect talk at I me to looking specifics come are

capabilities wonderful We name. a have brand franchise, a terrific and first-class

global uniquely with one We most network to able this And are means match. grow can succeed bank a clients globally. help no we and are the world's

sheet capital strong. Our and balance is

the have talent We around bench world. deep a

a together. good I attain improve at run. a businesses world. to to value well which much investments few that positions businesses our work We're directing the the to guide over leading have believe the strategic believe market returns refresh a drive A positioning, we resources in I hand our while is Similarly, in this and will stronger play. also digitized businesses look growth our focus more pretty can assessing taking and how we're So will strategy. principles we in of do, in the and ensuring long fit clinical

collectively, and finally, So they firm. true any generate believe are by unlock advantaged I like the And Scot, simplifying is to competitively value there synergies.

steady difficult and week, you opportunities pandemic. to and more his end as difficult Private go. make last by supported to one very to as put into promised been returning His took our we through I the and over communities And of he had As Management I a far led the with U.S. closing to helped Wealth a sharing integrate smaller, Consumer us firm we Earlier has moves and we our No our on this period thanking this about on building tough He at franchise our Mike. in a I as dedicated. want always growth, a line. very particularly will He committed would. his through He Citi. capital time. forward announced that career it of consumer he just Asia we business Wednesday, steering know, year people, He to with he I'm our has with success. this strengthened And Bank excited work XX-year to opportunity foundation, and restructuring. you well for one also through year us, at he as U.S. all in new this It's we look gap calls, but growth leaves I as TTS spent returning head am began, institution, a the the first. clients He shareholders Citi simpler, as us and and announced peers the amount tremendous the our showed how leadership. stronger new of our the Citi leadership significant made company post-crisis has safer

grateful Mike, to him you in him. next and all proud chapter. And We would Citi him at are very wish like the the of something very us close? to say best of to

Michael Corbat

going Thank your know be to and great now the Jane, comments, firm your are Mark Jane. I take and hands. questions. is happy in you, appreciate to I I

Operator

[Operator Instructions].

line first Schorr Your of Evercore. with from the question is Glenn

Glenn Schorr

it's asking you that came so I I Jane, can't on, think great one. you resist

then strong together. positioning agree So making and business, businesses well its own on I focusing with you, on sure fit

of global the global part up over from global well business can consumer. leverage a they that's does their American consumer own? the be side How individual I'd to consumer on perspective of You consumer come Latin love going thoughts on forward the years they "fit came your and to tenure Are much question much your true how get platform? for together." and

Jane Fraser

Thanks, Glenn, for your question.

invest done do direction say, together. us leadership part already if in going be of And pieces know work the work, to franchises just the the and you others of wealth have and the end the But we will working are let there say, new the do do but businesses we're And as and and to the are step work you win. I everything the I up that let know all a we'll announcement So call, to this grow on let as And we the work taking, you first. Mark leading would we of are and beginning view then we're the how strategy. want back, what's we want let taking on what us know, behind, the we a TTS. are being dispassionate are I on what at that not on week that to looking we we'll as fits let in

Glenn Schorr

follow That's a Okay. up cool. Maybe nitty-gritty more one. I'll with

On there the quarters. but think tremendous card of card noticed clients. customers, for mobile banking last of I that active a last hasn't in been customers, growth into been digital of amount say, appendix and in has part lately the digital couple converting customers X the side, years would there's in I plan I the growth the been

attack opportunity to that that that's and -- curious fits if if the So doing you're into I'm going-forward what plan.

Jane Fraser

Yes.

it's the of customers, terms in picture different the of different parts world. in So a digital

growth in saw we much a So lower with a Mexico that base. starts tremendous digital

the COVID, have pretty saw And extremely card we at States, across a we're industry. rapid the we look And in base already that. customer on the we When digital major active with acceleration a leader an so front.

board And rate. so platform, do that see is new as the the have tend lower see levels you well digital a higher COVID. come board on to they And because piece acquisition say across other to I'd expecting we is the of weren't when typically tend same the pickup. anyone's customers, adoption of to they customer

digital going So in and pretty I think we're we'll optimistic the adoption that in growth that we recovery, that U.S. the when see as also see forward.

Mark Mason

seeing -- Jane, we that that and only is have I or add the thing been usage, greater to e-statement I'd say, penetration should e-payment e-statement usage.

up and XX%. Our is e-statements payment usage usage some

a capabilities. byproduct that's so And through you with in been people in our this investments part digital we've actively that digital imagine, would of making the And as crisis, technology. engaged been have

And good about so we that. feel

Operator

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

John McDonald

could unpack XXXX the money? of where saving your drivers of investment wondering some transformation maybe Mark, you if spend, the expense you're outlook and spend I was between

Mark Mason

Sure.

by in be we our is there, look, about driven the get to that as see as look we around X%. outlook to I be. arms Most transformation spend expenses at is the that -- going said likely up being what X% of cost we So to

already. is spoke Jane there in investment context we'll strategy do the we're strategy this and to broader You of evolves. our that how of context the in spent that $X that know That's But -- already working we year. rate obviously a the we're towards, in billion run doing

ours. competitive if also bank. imagine, us bringing will in I consumer not revenues, also advantage digital investment as and capabilities, imagine, what's of benefits required the will there. We'll the investments you a the an innovation growth continued mention, to, fee We of wealth investment objective And marketing. me and heard But area there. announced wealth both on be in as you particularly would together has -- Jane where from you private management is so the good as from side, in business, an we our but consumer as pointed made grow I just and be that's know, we've where an will, side, that TTS already that, on platform as And ICG to important the seen maintain for the would see in advertising area technology

So be back work growth in up is money that was crisis. byproduct the loans put in about advertising year going growth with which we managed us And outlook, starting half through I down talked this of loans. to and that the year to in a as in net marketing, to of stabilizing interest materially revenue in picking again but back this

remind invest to a again, expect it of, a But the So that ensuring of we'll in to on look an be that towards that on a coming years. transformation. is say is payback we X% is and would this areas And to to I context those of are and investment, to of to lot focus X%. it folks in, we we get going that which couple continue that in the that

And that a gives sense, good so John. you hopefully,

John McDonald

No, follow interest to up outlook And just the that's mentioned. net you on helpful. income

of I factors would end said a to think could the high year-over-year billion low down that the $X you on are be it versus basis. of into swing What bring end that billion the that? you $X

Mark Mason

Yes.

interest got recovery in of the we're at that revenue again, the you down, part the look So and pace because net could forecasting. that's to be

have have Obviously, important that. how will we factor And be there. that evolves factors into in into I how be good you add across That trend And purchase so that -- would curve an comes card activity. obviously, mention this remarks. said, volumes my and play. heard we prepared on seen sequential sale the important GDP side, the another forecast will factor We the saw that rate momentum me loan that

seasonal, significant of talks in the certain that place stimulus continue. obviously, There a already. and we're stimulus of it forecast. really or GDP us to activity hopefully, some kind been announced just additional bridges are that good seeing stimulus that a where that's with some And for our our we're to been that's but -- We there's growth of to customers, of of looking Some fuels that come.

Operator

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

Erika Najarian

is My I Glenn, Jane. resist. for Like first question can't

but to criticism current hear about I that think plans with that and strategic on the investors excited your on But I share that's I of terms this sorry. to because And constructive I breadth as is they have of are think businesses. long-winded plan in get and your much Citi the to ask question, market you and recovery. very way whether that remediation lot investors think a continue are depth not wonder I'm board

you wonderful get settling little mid-teens Your you a seem on And whenever can bit the peers or you a a it, on that as have upon have that you normalized and opportunities do the think eventually normalized level. ROTCE be arrives? period level higher franchise that to that about that to think to Citi already improve

Jane Fraser

changing digital the businesses, a right it's principles at of been on question. what is the the as Citi world great environment we're of how we front. as quite -- laying how talking a on in as Mark looking look I through, and working at said, of Yes, spending It's configuration quickly we've we're I out that lot the for future, one a time and is do the particularly in

been few work on and and much be milestones have in last strategy desirable. the key mix of as we both getting over conversations, outcomes us, of what around desired input investors, very of we of part look in and terms are from doing measure at finished helpful weeks sorts very different talking And they're the what the them the once great, on outcomes. this the transformation. work, terms So number I've been laying which out doing to the we'll to are our of and metrics a progress

hand-in-hand Mark the said, going forward. two As go

So we we're And Mark, all you picture getting when in key has with this. look I forward been to know ready. back to that of

me pass the mic to let So him.

Mark Mason

type on towards we're both that Thanks, strategic opportunities and -- and are Yes. remarks, on making, prepared that narrowing the the growth-oriented improving that transformation And strategies rightfully certainly us focused along to your Jane. geared peers. and with path. Look, you that that I made growth of focus, put gap investments, in will we've think investments our identifying returns

I the to be those know, GDP to think And then of capital with path the tax in time work as the some a as of of And legacy assets we've environment in on and of prospect think to continue combination increasing put those in not the the is many deferred return return normalization levels over things, the down going continue asset us well. part cycle. we'll -- helpful of to got to I people time. those a credit mention getting to and to starting and improved strategy over the plan the capital, or returns, rates normal right that

Erika Najarian

related NII that to bridge strong lower the the plan the as perhaps you, so we back trends how that guide? cycle for we enough but It is long build losses potentially stimulus volume in question card. to additional follow-up and my think stimulus And not spending delay about enough seems a stimulus actual as trace should that How loan Mark. losses and to could that's and impact could if far

Mark Mason

certainly and we our mean levels there, Yes. think -- did I we stimulus. the of Look, about impact the in reserve activity we when factor

GDP, I a it of it seen. the lower up about up ultimately level that and drive important the stimulus I we've rates to of and is improved also good. greater rates consumption a we've There think unemployment. seen. far payment consistent we've it only in improved enough, has good in can obviously to rates, And continue should consumer, is payment the been to the the certainly what's thing And but significant pay point resulted support thus And that's ability additional that lower that delinquencies think kind that support is need for losses payment not to high our is in and seen stimulus. the level it of showed and for shows if

we our back could mention me sooner, see we growth. heard that, levels the beneficial sorry, If that up you higher earlier, would loan see as picks of forecast, of assumes NIR hold -- loan be the take or current -- of obviously, volume Our I'm in the to towards that end XXXX. that And half forecast. momentum mid

pressure regard. tend tool So put and stimulus down. hold, time, on will there'll lending also it that pay likely I it liquidity using people to volumes some It be -- good think it as in because be will takes over a But is as early -- are beneficial.

Operator

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

Michael Mayo

simple you? think get but the One And don't you first Citigroup simple yet question do shares? can were And how this Mark, you you I you one. allowed think question. and did quarter, repurchase start When one much purchase to hard the repurchasing can in quarter?

Mark Mason

Sure.

So in was allowed X-quarter about equate know, to buybacks quarter that's us There for That so buybacks. us. the quarter. would $X.X the trailing based you for a the cap Fed on first billion of the reinstate or guidance in to as average first on income

so approval, QX. Board -- with some of subject buybacks in And we to will approve level

not have We of as started yet. buybacks those

Michael Mayo

Citi But when does the want from back is -- have for or question a Jane and XXXX, then fallen of that decades. And short status, we in you each of past be Citi's mentioned despite hard ask global And of is step reason this All global. the now right. is X the years Citi I to in expectations who XX X Citi? picture being

even the agree capital can to the back to return is back with and and the of fallen retrenching 'XXs, back can financial Sandy go go Reed, go Walter to the back I on last can to the the and crisis, capital far financial Weill for supermarket, the can of John the and You bankruptcy derisking, has Wriston, chance of short cost you decade. less, go you you

do customer Why Because be you'll or this can different mix take differently, time? and What will Citigroup perspective it's So you mix? whether from you it when mix business seventh I great. over. or CEO at be geographic it's the -- my

passionate almost look. last dispassionate I'm underperformance years. of the about Citi the a extremely look, frame the But clinical XX a take can over You any time over

And so capital. your Citi, to finally cost the returns of generate do McKinsey to XX your what to you I'm at change Citi figure years at just sustainable out can experience given actually trying above

where -- So once what's again, Citi's endgame?

Jane Fraser

Well, thank you, Mike.

like it's game, simple in I the a end in terms we what and question XXXX, do you of asked pretty So think really. look

their global a the in be in our positive days. and the want add the role understood we're clients bank. bank. that well with competitive We that's generating that our serving from franchises a to But by That that strategy We're said, you important the sets seen positioned want from to We well customers, want of respective very our purpose part in, leading best-in-class and all be I top-tier that of a a to of mix has over with global investors. be certainly we means been market as frame. very these returns in society As safety businesses. our playing And for soundness. I'd in desired time think as is

equally made crisis, over know peers. there last So to XX fair, is the since a we with that the to years close our have progress while be gap demonstrable

doing team. can management the We're and get team me for this will You done. along on this mission accountable a with so to we done, a hold get

Operator

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

Jim Mitchell

you any Not just dead us. help can horse, one a if there's to quick give maybe follow-up, beat

you see it giving it as I today away do Is you it the about can't capital peer-level they of you investors really -- it How an where is biggest and the you strategy because the are think issue a one to gap? that, of on what's on returns. is look specifics Do and things at driving like efficiency without path concerns think kind the of the -- think DTAs? of issue?

Jane Fraser

and Mark successful one of that we all questions our parts us in in for one come be investments sure the enable important -- think dimension how will our saying get of different us We pieces that forward and resource as as that So where high-returning the that are and are to the drive and at how franchise domain, are an many got we've do the areas well We've businesses bringing businesses with drive that well value we how and in out think the mix. to piece. businesses be the the will see collective highly as the is drivers I remarks, forward. different looking that down into want be clearly at we the is And different different would firm said, really going we on do the we I important areas as well that sitting going the we obviously, our drive make drive from said advantage. that comparative these opening simplification. business of, helping wealth, see that looking And we're as one already growth they're make sure allocation together we that are we Mike operating for and the in puzzle do several synergies the and they elements, as returns. firm not together in terms the from fitting There that's to our achieving competitive as this and potentially improve I so And of efficiencies only like to to said, principles. other that's this

friend? Mark, forward I them my So the to it's this we pieces. way delivering work. an the decisions investors. as you, we with intent results with as look you desired a go both to going as as to leading the be and we what the sharing know frankly, say, of let a But firm organization to that we're well We'll of add, have global make combination that's anything along our doing

Mark Mason

the but it to we're here. in one going refine going continue said, it it's strong And XX.XX% that that have. returns DTA do competitive we take this drags. earlier. the of to said to target we that's because want sit have certainly get in with But drive is continue and to got order a CETX here capital some versus right? an mentioned what continue investments want to to that I Yes, XX.XX% the to we some We're you advantages Yes, weigh done, are strategy They make to to that we up. the between very I think returns. which as assets. We'll repeat thing ratio there excess going is franchise shore the well, I you improved with on combination. We've legacy also businesses

we so of us into improved work levels are those to we are believe coming we're that And going returns to -- saw back combination. things the all continue in those going things are that things believe to to this get I those continued the crisis. And of

Jim Mitchell

growth enough. investing. it's the fair just to -- growth you see see you've one TTS. in pressure you you Can How the those a We've with rates, it, talk payments, business seems -- feel that And here? like to underlying and environment. it's payments, the hard from No, to competitive services competition, in where maybe businesses Okay. been businesses? or speaking of obviously, in interest talk growth underlying you whether treasury think wholesale do it's seen do about it about How

Mark Mason

Yes, sure. I'll take that.

of services our part about inside feel include very We first of that and the of we as business ICG So services have. business of all, we think security TTS good services. the TTS it would

about As you numbers part we unique by business, in by key And rates. know, interest we that's our good the very of couple think a you're headline a But position the franchise. affected within this of momentum and feel drivers. the very underlying have right, we evidenced are

You're do aware That clients countries. to a gives platform. on that transact ability currencies. we in global our over XX XXX And we're the in

to up XX%. digitally countries. We the our clients. we accounts that digitally, we allows ability that, that XXX,XXX continuing accounts the us to accounts And activity are and opened penetrate more platform. And X% over new than platform, year. from flows In mobile users revenue. to across relationship grow increase. users our about allows more XX that which with us about on with And more have to is We're within a up ultimately, last accounts open growing now XXXX, deepens have delivers capture XX,XXX XXX% clients our representing centers, And in

us clients. the and to And different in with and do clients. more business had in payment is across these volumes so good also seeing for cross-border good drives also very it digital flows year. We're types activity more We've revenue clearing way -- performance transaction us a through this with efficient future, the for

clients. like so lot insight momentum the not mention look those And And into this give of crisis. coming what that's out of additional opportunities will new to things us a with

commercial our TTS moved As for the into ICG. There's our with with client more commercial you the a business -- commercial platform we've squarely know, upside base.

as this capturing where we going we the out And taking very to they our in continue good and crisis. looking of and our invest feel so granted. for We're growth platform, not are. forward We're this clients to come to we're supporting about position

Operator

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

Matthew O'Connor

I want to expenses. follow on up

the and lot billion year, implies as in about this you alluded that. So investments a guidance $XX to, of

rate these kind of them this down? will that run efficiency to from it's as then As more But can investments revenue? we view a the bring beyond hypothetical we little think kind out levels year, -- simplification because some come out and the a this a impact we and can of is base, the strategy expense bloated are might normal and that of expense be you running that of at base. higher-than-normal as should changes Or think growing really there

Mark Mason

Yes.

And what data comments. operating as repeatedly, expecting reducing These and as a Investor we'll approved thinking to that what or these low-cost some are invest May submit Let We've no. investments, expense here. me to continue all. couple bloated mentioned productivity. now there see against me plan got base, we're the around make of that history expense in quick a That's location some will in or you improve not a productivity inform to transformation. of the kind across and coming the we're making a would our got going continued platform. of question to base return both we've processes deliver need platform, we'll progress that's automating investment. to more whether -- our is mention on our of with that return revenue a a credibility we through we ourselves The answer say I We've get repeated, outer-years. will investments out demonstrated you need be and should Day, that centers make. they're of of heard and Jane to come and the our in will a strategies. It's to now. your But bloated around at expect. that's you've midst to against. And expense executed And Since going get be on having and plan One, mentioned efficient I as growth

no, so invest to are we bloated a in And business. aside, expense that not With to base. continue going so said, that put the

if improved Jane those making otherwise, byproduct only either so investments that of returns present way that there on. are And advantage as opportunities the we or has because is strategy, mentioned we're we a to take that intend that the themselves, and those to targeting refresh focused of get

hopefully, that question. So answers your

Matthew O'Connor

I'm some payback, -- have or capital deploy sell a the terms out. be in might to again, in right? investments Because some digital if which some stand-alone things of take giving businesses, the exit and a high-return I them you're just earnings might about them you at there's you in but helpful. any, to potentially there might of how just TTS up been But think review, is are lose play you That on can businesses, aren't. And bloated certain speculation not you then business, before wealth about of be do pretty And you them some look exit. going could think them, time separately, and, there between as as name gap some terms a you you strategic some we basis, and of think initially conceptually like earnings the if and

So or... of is you're something mindful like that

Jane Fraser

around at investments at different we're the forward. in the we how want if in And are returns. the as much what be we don't is I What there got And we then well that do it what but into looking ends look it we've way are how -- quite more we divest where at at Digitization on We're moment to Yes. well going makes is focused those a that opportunities, are they of businesses referring good new looking fit in we work is up of as that terms do not also the lot important of some be. to we're how few about going businesses, best where a that things, growth for as for thinking we mix, skills honestly It's moment. what as a think Mark sense. fit But are changing was that's providing think to. the together.

looking and at path that us and the get what of So as back to say, we're then work like. wait I looks for plans done, we with to can what the you come

think I right it's now. speculate too to early

Operator

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

Betsy Graseck

from high-cost not And here. good low product, the -- reduce questions. about improving have funding rate, a wholesale a ROA we've the been relatively rate lot I side. talking high-cost up pick brand funds at wholesale a a can the U.S., by on you great environment, a growth we able you and of from actually really your be mobile profitability this talking the One wondering that and some have should on have that? to savings why you been savings in a up and interest that you know which, side, product given fact it switching revenue from expense put app about the cost the to that we've but cost about -- Two side you I'm also

Mark Mason

byproduct digital Yes. But this deposit Look, as very accounts. we account growth deposits we've and seen in we've seen of is savings well. have seen good of some a growth, checking our the strong also our growth and that high-yield quarter,

did and relates the also they that deposits. We funding for We've made some the clients keeping liquidity for been cost paying liquidity, smart year about obviously, as the through to continue may to also the managing our but that And there so customers that's evolve a liquidity, there's play wholesale investments to down We've year. And some our advantage intend to increasing investing. right, and and debt. lending We out needs how we've through market. you're grow it in that. seen been those as we've

invested as year. so, we've up XX% another think for much as billion $XX or I the

the the And And funding this deposits course that continue of to been do -- We'll you're we'll managing thoughtfully we'll it on liquidity year. of lower-cost so we've a right, sense. do continue that, a as we've it the if and consumer side is through because grow that makes seen lot it to alternative.

Betsy Graseck

for question that is The credit. 'XX you credit I lower about will how thinking you, you're versus in other Mark, be mentioned on just know 'XX. costs

is as potentially the of But larger question on all estimate of -- as how go some understand year? Maybe peaks. what costs on hard can unemployment and reserve is analysis room agree at then that. there for to there year-on-year. there. an we give we trajectory maybe looking think today thinking reserve about one in with much I sense 'XX. know It's be for you're year-end you talked And your to that. through release is the us charge-off flex we I to And Trying net for maybe reserving about -- could stimulus level the to how help that kind a give you're how credit there

Mark Mason

Sure.

there. guess of pieces a I couple So

we at kind know, in you macroeconomic have when variables Betsy, as the at that of point one, time. look model So we any we this,

you at as you out that you well quarter. we've there's forecast that of laid tell used the we seen here. this this, 'XX quarter at as X, forecast we've you, quarter further ran. improvement I'd improvement been Page so since see variables even U.S. the And U.S. look that's of we unemployment third that real both look GDP, even kind fourth can And off the as And for for

reserves. improve in of of And even model able we're the would in lower play factors that, -- the that that would as assumptions improve important we to way are or and in be would way the so further, out those see levels. expect what that And reserve we

is other factors I be that about evolves how going that and here. uncertainty. that continue -- whether additional probability the is consumer of management to that the mention these improved drives drives that's associated with the that play will final severity and ultimately for stimulus is and levels we and further economic think out downside important come consumption even how important the that continue piece and how variables guess see and And scenario. means And what I'd adjustment hold think we that into I and that there that as factor whether stimulus to we then improve, to impact unemployment

factors that carry. those play come think of we into reserve as levels the we all to how So about

these feel in the we While we direction to $XX appear variables have feel about of way that about the be billion still very good economic roughly moving. that good we the balances,

this terms played been it's the has out. again, of way In losses, interesting

really, And that a we is in right? whether delayed sit would could corner, be and or XXXX bit deflated losses level of me so heard lower figure that consumer. remarks, that a away and today. we time you trying it be we've a prepared what it's of for tell peak in delay the we're in ultimately far hope go fact, with we right think all U.S. further will seen my And and just and delinquencies losses again, in would deflation the lower stimulus losses, it as here down. of that, come say around that out is to would And expect is to only another as we thus But delay see particularly now, a

Operator

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

Kenneth Usdin

that Mark, this Understanding you're comp fee A year-over-year. side. the on tough -- see follow-up we'll question,

But the you moving little can environment. given when I can Banking, you think just for trajecting, Banking, of toXX-ish. you normalization easier, some that you Trading know if separating about the that to Investment more a out et wondering bit the separate you visibility like that's target Just how expect talk just notably you about see cetera? Investment back if see areas through us TTS, and stuff a

Mark Mason

Yes.

that space to clients. Investment dialogue have So out you nature Obviously, see the of to seen the to SPAC relates equity we've and good think continue performance very will continue those and deals. the when on -- side with just again, it we we about play strong as capital markets, our Banking

just think capabilities been models but corporate this trying types shifting. the they with But clients has and will means of out they're And are with to what banking, XXXX. broadly also and figure how And supply that's that out as their both own crisis very to clients about play the good. so us. dialogues their out chains investment dialogue continue into for needs corporate and that how business having in of also but be might And those their think digital and they internally about how coming both

so we the the that creates conversation. even half Banking side, the which being opportunities to And as as lending of to activity, relates on and we're And Investment year side the part it up on pick corporate potentially back part well. of in hope of that the TTS

to corporate And that dialogue, contribute continued you very so revenue fee going that's think very, strong ultimately and of and I that driving to mentioned. some

year. got In some The has to of we markets. we've in had markets extraordinary and at great growth again, obviously, wallet normalize deal piece, terms a -- And seen we have that's industry of an point, are it January, days in we it tell robust that early early that. And But But of quarter. I'll in days does. see the you continued forecasting activity. the to we've is seen the

balance over the into that the to of quarter balance and of And see the so plays how we'll out have going 'XX.

Kenneth Usdin

rates that dig is little and yield rates. that the always curves follow-up It's or on how U.S. to guys might help a to to how end there to just us able just the given you of guys here sensitive not if And company much the us add? much -- were out face. in harder Understood. just move a nature you global is way benefits be you a all the just or long how to can remind contribution -- But the

Mark Mason

kind tend that's tough some to be fairness, to of we to in And IRE the Look, more short compare disclosed in to peers. sensitive our curve, the but Qs. end relative we of information Yes.

see the we we curve think long investing would XXX pressure -- with is upside what about would from show we So the out repayments as basis some impact would like. MBS point seeing -- would And and the on curve but reality steepening, been that see we the the on be it we've as increase end. would and also

more see sensitive so short. would think we we And we're to the steepening, some with But benefit. the

Operator

with Kotowski next question of Oppenheimer. the Chris is Your line from

Christoph Kotowski

Or at one handout consumer the And looking the narrow And trying Latin XX that. questions, Page your and one I looking I'm to underlying question understand thing, have to the guess, broader. of losses Or have global up. narrow, X do is I'm And does the forbearance do a and accounting real that significantly at other are is economic down Is have economic thing? an it COVID? variables? thing? just it that delinquencies with does a to trends. America, I with are

Mark Mason

we're is there programs what up delinquencies come the we're seeing relief as Look, as seeing place, that of Yes. pick people have expected. was off in been

see that the we will is in in the we quarter. that of ultimately, lines out America. what's play that's But so increase Latin NCLs. the in fourth And again, And in were out what expecting that playing the along

Christoph Kotowski

the presumably forbearance? decline is side Okay. the the flip that, then of And

Mark Mason

Yes. right. That's

Christoph Kotowski

Right.

shape mean looking is if high, us of X North economic or is I you is Okay. America ago that Asia COVID, picture of I then months have just like infection and kind XX think America of global can I tell. wondering that at form kind to And disruption in rates or guess, disruption we doesn't it any and Normally, guess causing if the the of particularly between. would the And can in way, and, in account I of at broadly. look rates that. loss seem kind low I mirror the more how And gauge businesses? are somehow And And be thought I to for somewhere COVID Latin guess that. all you that your is would I'm

Mark Mason

Go I'm sorry. ahead.

Michael Corbat

say we in terms what would Chris, got position, into that No, we've response. the terms health in of way Mark, I I unevenness, terms this response, the was look I in of would going that right? economic in terms at to The of describe say, of timing, as to went unevenness,

the trajectories. Headlines time, in and rent every payments, in payments. the on at paper at terms different see at behind the are look clearly, of layers their cards. in paydowns same at Businesses different subsidy of different continue this least on X credit York in see we out City strata, or you to different things. X But morning, the You New X demographics, -- in

way President-elect as state-by-state then so how and out through cause makes comes different sector. we that what a think as and last will And Biden ultimately see that the round And and on its vaccines the we second roll announced I as night again, basis, outcomes. into what see

and sensitive perspective, really client So from a we remain around taking U.S., in geographic, a approach those. each that segment to of geographic client just globe, the not very the around to but by segment are granular very our on by trying

And level. got so formula with I done be don't outcome. think is a look pretty to granular a there to you that the at single and at this allows come It's

Operator

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

Charles Peabody

because businesses. I color of in where specifically, a you to Yes. it the the then and us it's Can that weakness trading follow-up little question of was terms understanding to fourth the on markets that, your I FICC you was wanted on commodities, focus businesses. quarter bit there talk for about that I'm anything it's there extrapolate? that's you or it rand. that wrong-footed not I or difficult market. XXXX environment something caught trading? losses make going about and normalizing. is in rand as not more were that do Was were had in making was strength FICC Because credit, can And And in commentary a relates you positioning currencies? part my the trading market to there assuming in rates, experience the where the But a give more or And material wondering -- changing as deep

Mark Mason

this Mark. is Sure,

Sorry, go Mike, ahead.

Michael Corbat

more than recommendation an that rand First I off, that, a actually was of play. firm say the would positioning a piece that in Charles, research

was out that. they around was what it so a with going believed our analysts recommendation And

that. should I read I that measure in It's it's for be business quarter terms as our we've shouldn't with On but at that rates we as and look you having look think large. the trading, credit again, as if that of think piece, second so us, necessarily not as in there, think strength FICC fourth the your as position. you posted, numbers I against research And you still the Independent at currencies came out firm relative us for credit and and products, not spread a business, large. meaningful look that

research other over somewhere today, you but spoken was mid-XXs. of our at not not to those space. Some at leverage just look I the The the as for trading look that look we to if quite trading in at people think that as And indicating We're longer And XXXX tend have in quarter large revenues, the Street having space. in it's outsized, cycles. lending we wallet as of up neighborhood significant returns that

we're trading probably in As XXXX, somewhere the you our look for revenues at mid-XXs. up

again, So our little we underlying there for that quarter-to-quarter, the a to us feel think tends continuing take bit. and bounce again, around good dialogues position But we and mix in pretty again, important. to the are. But where of I about less kind share

activity think Fed And think that seen to same started volumes seasonality year, see as we have I take year. the unlikely and it's and see going relatively it's that space as we degree, stances high. said, in or trading volumes, remain early this rates in of to think up we trajectory governmental continuing the I and think will resume. think But think we're to others keep new wallets that certainly Mark saw coming the as out, forward, things as potential to I programs where we stimulus and We trading we could on more keep the go, high. creating kind

we're around we're dynamics clearly well the think dialogue escape all can't market those, and pretty go. the positioned, where of but of we in we again, So wallets

Mark Mason

FICC numbers. had year. the up year. right, Raise Mike, hard those only currency add be if up And thing XX% is this Spread products, very performance It's strong is is the at for in XX%. with look you numbers, up I'd to We've the upset XX%.

been going clients, has Mike. to do you continue business everything said engaged that. we're right, think and exactly fully And with to I so And is the

Charles Peabody

and particularly process? you look a an which nice there FICC offset unusually FICC that and are does any that? mean for when as But it looking XXXX, you in be thought of between robust, -- it follow-up, mix I I make equity in to less recognize was was year is equity Just out to strong at see. Or your FICC, sort and

Mark Mason

up equities up. is as wallets right? XX% equities well, our Look, were the the this We're year as -- normal well. and So for up

So some the point? year at we'll see across next normalization or a take place board

Michael Corbat

to build to we need seasonality, calendar balance the debt was fourth and clearly the sheet. Charles, to the the new and slow equity at calendar. and strong. and saw on liquidity say, our both issuance shore to recommendation, issued also look We clearly, the up uptake we would lots And the There and I was And the go of ahead clients in side are quarter. debt saw the around

less got XXXX. probably we've to the markets the to we've issues be able that's what and but which welcoming got time, see have And excelled been it to market new and of afford, in equity in evening, strong. we'll space, has so SPAC calendar same I've particular terms a debt the say, And reviewed financing needs that remains at the and very last I But strong. again, to

of I also, forward dictate will year. the that then as go the again, we in think, some secondary activity so And

Operator

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

Gerard Cassidy

that's more every the limitations as peers. test it as past stress like repurchase like. got Mark, program that lifted traditional coming if repurchases, effect limitations for the and in are capital green long consider done regulations this X you'd after rather back are guys an or that back quarter you the also very you're October because we was income, what required to in to stress you That buffer, If where and based go place possibly year's the the doing in past? share CETX pass your backdrop, than the it accelerated to free share you there's requirement, whatever you do on into would as light regulations the your with it and the you went those clearly, explained obviously,

Mark Mason

get the resubmission, buffer, haven't at prospective important to together. of is -- that And inform to from CCAR stress consider capital then we'll the inside of including our We're will that that us of that recent juxtaposed have allow what but coming capital would stress need we'll XXXX. subject be that. applied another saw component an to for in we all And suggest, basis submission, there'll and results look to will you post performance They suggest. how Every points. stress will outer-quarters go-forward projected have the factor at first look the there. And go comes to to this buffer, take the think out those view that that, the actions a buffer appropriate obviously, be We'll against capital our are Yes. capital stress by still that results the capital would up we X.X% XX target. all, what quarter,

we decisions, our in action capital will supports so to speak, this that so outlook the take. we And that to quarterly want take ensuring

And so how intend it. to that's approach we

Gerard Cassidy

Jane, the your ROEs consumer business numbers the XX%. those their numbers, more Banking was States? based about the to the can business there And Is good. there between on about going look have at out Very your we at work for that the peers, so Citigroup a I you in in of Is franchise. you opportunity drive to pointed X peers profitable lot one that But the you an Consumer grow U.S.? is to the done give don't profitability. obviously, an biggest XX%, consumer over X terms which in ROE whereas be gap opportunities call. acquisitions Citigroup your And fourth the growth when looking And that us differences quarter this in are its U.S. narrow of global of of answers, for opportunity is and between depository peers today, to business your United announced on banking of expect that

Jane Fraser

customer the we and been referred Mark as to. we've put over had We number certainly U.S. has that strategy sure capitalize that acquisition, deepening so by relationships building of And opportunity. strong last digitally all together make believe our a a in or And important out of year and to we is U.S. the consumer have on digital thrusts we the the there business as

So and we growth is yes, home for market see The as of one more to important our come. opportunities, we said, important us. specifics do that, an

Operator

next Your with the question from Generale. Lim is Societe line Andrew of

Andrew Lim

So for a quite grew whole, system at seen system deposits banks. excess sorry, lot a for really as the -- the we've

nominator of be down. just that quite bit I short how ratio. your of for that It LatAm be me And then has about and exclusion that. supplementary that, quarter. kind didn't to see for if leverage about and just see And what you look coming competitors putting to ratios, took if I things be could think your the pressure said out you strikes two how then a is same would seem climbed quite the be Citi, which one treasuries What and just assets, should this case. quite ask ratio, of your cash on I they you think reason that one pans certain noted how catch lastly, that tight. of of on then as pressure risk-weighted think And NCLs I could the a wanted temporary it you would It driven. that? credit this doesn't surprising its was technical bit whether questions. that entirely away I

could you give more if bit on that. Just color a

Mark Mason

Sure.

impact which Let me deposits. I on, was start question, think, the with of your first

so we'd have which first relief, From the lower quarter, in of not a does a an of XXX increase goes for the at the of deposits. SLR seen SLR points. number point of we impact That And metrics. view, the basis end if important away significant yes, have a kind by

provided an the first the It had So and has to the by points of going impact -- the end way, reg relief away quarter. basis managing XXX are SLR of relief at also that on there. we relief

aware deposits. X.X% in impact of has the of increase -- GCIB the is next kind the also an our We're tripped So was which bucket, And driven GCIB to bucket. the into It's that. that by score, we've also on we're percentage that. of seen large managing score had accordingly that

so given we their that been have to capital the -- consideration And view some these as that Fed that enough the to there metrics to system. we'll of manage have both there's a in clear be needs view has as of in Obviously, well. terms

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that here if program, America, of running point would your making on I were a the in that those part NCLs risk In question that were was the of was relief program. customers relief terms than credit been because we've they been the have that seen lower that through have we've Latin customers had what not

as see see of start to take and to those delinquencies up the picking say, delinquencies the NCL start paying, pick up. I the -- you lower program in therefore, you come are should stop and And or NCL people that up. delinquencies relief So quarter, -- see out also you but

advanced did derivative you'll well drivers mean quarter-over-quarter. And they on beyond question increase combination risk you RWA exposure we last pick And due a was shortly, derivatives go mostly saw including -- as XX start we FX as people so increase and to Hopefully, clear. market delinquent losses. that asked past was of and see I growth. were The of see go and that that, NCL the risk, into RWA up days the risk. as CVA. The there FX operational of inside credit some drive increases, was and

are of on So we RWA that the saw. drivers major advanced the an basis tick-up those

Operator

Instructions]. [Operator

Vivek Your of final Juneja with question is from the line JPMorgan.

Vivek Juneja

have you just see like But management XX%. I revenue quarter. give consumer quarter the us in And actually focus. we linked a investment is about XX% up you've wealth clarification. linked sales fee quick Asia, been Asia stats that down a being by for the talking know I

us really material part are of it hard Asia, a it's the Because context talk in So around this way as tell. offsets? Or but about no there's to what is disclosure, small other put this. you I Since any for there's revenue? hear a business no to

Mark Mason

just this creation wealth with going bank management together private the we Yes. the to bring we're -- business globally look, wealth we'll consumer. on obviously, we where the announced, And of have management business

and going So management continue us to see we Asia we'll growth as more is provide continue metrics our to detailed a wealth sizable there. expect business, to that. it relates or are to But

we tuned strategy get details how And so on there the around after of more for disclosure kind that. stay more and

Operator

There there further are questions. closing any remarks? no Are

Elizabeth Lynn

Thank you us joining today. for all

reach out any IR. nice have you free again, a us Thank questions, please If feel have to you to day. and in

Operator

your This concludes Thank call. earnings today's for participation. you

You now disconnect. may