Citigroup (C) 13 Jan 232022 Q4 Earnings call transcript

Hello and welcome to Citi’s Fourth Quarter 2022 Earnings Review with the Chief Executive Officer, Jane Fraser; and Chief Financial Officer, Mark Mason. Today’s call will be hosted by Jen Landis, 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 Landis,

may management’s to are subject Good current like in thank today’s to for factors, those website, a in variety and to from materially our is operator. which and may joining described results presentation, all us. available of citigroup.com, our Actual on differ I’d remind expectations SEC download these forward-looking morning on you, statements, you are and for which contain uncertainty changes Thank based you circumstances. statements filings. due including that

will With it that, I turn over to Jane.

Happy Year and Jen you, today. us everyone Thank New to joining

fourth much We And take will few on very the Today, macro our then I minutes as share a on our for priorities to off and are coming the we XXXX the start year. our XXXX. progress quarter. and running strategic recapping in environment I perspective our before reflect will in performance

the global macro of played as out last largely The anticipated environment second year. half during we

of labor across while we tightening and the the enter That we being public dipping the peak. year. consumers in we to to remains savings. on a off grappling continue reduced Asia, supplies environments half however into despite In see part stress and therefore, the we than here expected, and is resolute of in In because COVID mild Fed is ease with. drive some beginning to least, its at U.S. was and abrupt of should structural health the Zero year begin the at better market recession of in the improve still severe. in economic aggressive expect expected holiday strong given said tackling second this softening the had for Central a into conditions generally. growth all the than warmer core The spending sentiment likely unfortunately remains time Bank. Eurozone inflation challenges entering better And energy be Europe, December home, been the As inflation by The are have have China to XXXX, their it impact end

Now turning to we performed. how

fourth the and of $X.X EPS $X.XX. income net billion reported of quarter, For we

revenue the of we ROTCE X% an gave full X% ex-divestitures as our line delivered nearly Day ratio was We Our at the a in Investor growth case and XX%. of year guidance CETX with you was expenses. of with

to others. with are with how quarter, and This throughout of we pleased they the similarly the quite performance our happy less and performed year businesses did some

to continues revenue cracking growth. Services deliver

very markets are are U.S. navigating Our Banking. in environment businesses the seeing good well and Personal we momentum

with quarter of gained higher services. excellent flipside, at business Solutions most smaller and drastically we is network business security investment Thanks we our expectations. banking another drivers, in environment a pain power ‘XX. wealth bit, remained had both that of rates, Investor and significant felt up services And the of delivered a On the ahead strategy in share TTS year-over-year challenging a Day. to our the Unpacking coupled one. TTS, XX% we the laid the wallet the as revenues have Treasury execute for and on out emblematic strong of performing Trade global

strong the memory, revenues XX%. the under administration best XX% custody. recent was in with fourth onboarded new trillion Services Securities $X.X had assets having of a from Likewise, up XXXX. up We and ended quarter year Markets

our not derivatives. and quarters activity, XX% again, the one the strength during was FICC mix We final the quarter. first the in in up client as year income street to play fixed the Equities was of have the on did number franchise down three of

down about the XX% quarter. this by off With were wallet banking revenues investment significantly, our

precisely sentiment tide with the predict is looks Wealth quarter, down While promising will the in pipeline Management’s in headwinds and performance macro hard turn client acutely creating most in globally, were disappointing. to and Asia. when X% was it the Revenues be environment the more in but improving, AUM ‘XX. fees would investment

we client acquisitions in new and have business by steadily improving net as the continued flows. been demonstrated However, spectrum across momentum the investment

Similarly, we our the U.S. off at advisor these client base given pace continued continue albeit both Personal to to growth recover. retail we some second work this straight more see Whilst investments would purchase in expect pay In and revolving for cards revenue a the quarter had banking, clearly grow environment. We do. Banking, build double-digit as slower businesses have to as sales strongly. to markets balances

we balance managing have you know, been our actively risk. As sheet and

in increased built was of this below with of guidance. losses well as still back mild well to recession. cost in portfolio. in credit quarter credit And volume net cards as growth as on in remains of corporate cost Banking continue levels. the had similar U.S., credit anticipation healthy our quality the our quarter, the reserves last normalize overall to pre-COVID We expected, Our in line reflecting of Personal and of loan credit our low we Corporate a

returned of shareholders our increased common XX% billion dividend. share fourth during to to basis value ratio And the book capital, through $X CETX we to quarter. terms increased the finally, our per points In XX our by and $XX.XX tangible about we

discuss and we let accomplished XXXX. Now, step what me in back

in plan quarter. down well year as winding our off pleased simplified made. swiftly last am put place significant was ground. sales have progress business including we fourth the to designed to in our bank, rapid progress businesses made that in consumer in Russia. value already our and franchise consumer Korea our in goals shareholders the strategic We plan with the a major I of as long-term closing have of And X create our we get markets, One X for to the

and in to orders our transformation modernize continue our to our address invest bank. We consent to

representation very our a financial the and make strengthened bank. making will increasing accountability streamlining are our that and by and our whilst and against shareholder I delivered them culture end, brought more our the guidance us We pleased am better in quality for processes our data. automated met alignment. To talent, of accessibility we goals year. We This improving strong

We XXXX, announced to from efforts reviewed plan findings and external equity the the our reach firm, emissions net our also an racial released U.S. by expanded in which zero first law impact our investing

I and very compassion proud people Finally, excellent macro XXXX and and geopolitical am of communities how supported define our clients which with throughout. handled shocks, our the and our

X years to hand Investor X. XXXX targets and is Day, turn a the I disciplined next that of At over execution to particular, we on investment. coming characterized foundation we three talked Phase Before to our in and both path in long-term with medium-term Page about Mark, achieving the by path laying the driving the laid continuation out few value. X, let’s shareholder phases, Phase for return

Markets Services corporate We businesses benefit base of major out changing businesses our and on stronger. advancing client franchise productivity. further ‘XX our the competitively mix on strategic will investments and should active continue a to that ‘XX are market-leading our new momentum to the business drive with focused innovation capital capabilities. on focused expectation from product and the pipeline back close and with the revenues with entered returns of

cycle technology the franchise. have top Banking for realized made Wealth well when and the across as and in as well Thanks synergies investments turns. talent positioned are o the we the

the well more was search GoG’s the role his relationships a new designed take change clients this in business. leader identify home the Jim right new and across additional role what asked and we O’Donnell of combined significant when to a make expertise our firm. deep felt us with time a we This this capture Head, business it’s As market. help the America is will on and as on a North senior leverage opportunity started to to you in of next I saw, focused to

benefit in U.S. recovery full to Personal borrowing, advantage leading new of card the products, and platforms from market Banking space. taking will particularly continue digital and our the

our further in consumer base. make deepening on clients, on exits, enabling of firm course, clients the relationship to We us and will focus new simplify and our line cost our with strategy. international our on will, we bringing reduce And progress

our investments and the franchise, investments making our disciplined continue in will We including controls. in transformation

will environment. our we of operating reflect the to some However, business pace investments

expenses further our against of will Looking the deliver we bend our out, targets. begin curve medium-term to to

our necessary returns in so tough the of our we the combination cover suppresses We divestitures, near-term, reach transformation to targets recognize are fully and our this investments return deliberately further taking long-term will the the realizing detail benefits value. and but We actions of shareholder simplification medium-term and financial to will a Mark create and through this shortly. do in more our strategic

intentionally designed environments. just we for you the determination but We strategy momentum, macro much our can medium-term with that are on the our in we targets very different carrying Day. headwinds, Despite on Investor We XXXX. into shareholders shared not track reach to are return deliver a our

We to transparently focus the proof way. continue a with on share and the bank will you our are points along running differently with relentless we execution

With be it like to Mark to and as then to will that, delighted we over your I’d take turn questions. always

and Jane good everyone. morning, Thanks,

otherwise. our lot financial and with full I year-over-year discuss call. guidance today’s indicate end also year progress quarter going cover to comparisons, a the targets have XXXX. our for will I fourth on am We KPI our start I medium-term unless against to results, and on with focusing

ROTCE and pre-tax largely net On gains the results firm. full reported we are results divestitures. for Slide $XXX $X.X the driven and approximately by divestiture-related approximately of on an $XX these we an In revenue. of of impacts X.X% of billion on Embedded billion financial $X.XX show EPS quarter, X, fourth of income in million,

was $X.XX Excluding items, EPS an these ROTCE approximately of X.X%. with

or partially revenues revenue the investment and U.S. X% wealth total quarter, by X% services, exit. banking, in declines Personal the as increased In market was Banking excluding impacts, from across reduction by closed and the divestiture-related offset strength

Our results versus X% prior include of expenses a billion, the year. decrease of $XX

from by and expenses in both X%, investments of the year, quarter business-led by the and volume-related largely increased higher year offset last by the driven savings transformation, divestiture-related expense productivity Excluding exit. our expenses partially costs and this from fourth reduction investments

by $X.X billion, largely income assumptions. was net $XXX net on billion cards an of build Cost to losses, ROTCE And Difficulty]. credit macroeconomic full normalization and of in growth some deterioration card and related particularly in delivered and primarily $XX.X credit million, continued in an services ACL basis, in the driven we of approximately year [Technical retail a

clearing of business up revenue deposit $XX XXXX, reported walk excluding dollar segments. Treasury by with and market have been reaching well products low revenues Now wins on were actions growth. that turning rates the in Trade of capabilities. we X%, industry, live the to in revenue that as cash managing the In continued new we the Higher single-digit which instant our up deepening over such XX winning first from XX/X in this as across clients U.S. have Solution These year impact guidance and billion, with making investments product as launched and driven markets, product in approximately clients line capability XX all to X. suite payment, due repricing, and accelerated leading countries. the XX%, X-day year, is existing earlier Slide of the include we divestitures full benefit

So to net interest driven income action while year, the drove about Security non-interest a the this in of rates offset partially half. remaining investments grew interest decrease valuation. the In market revenue growth grew the and X% XX%, due of higher rate as Services, half revenues by drove across business impact currency, by environment XX%

very of For in good we reflecting in $X.X FX pipeline the wins of assets by primarily offset and administration the revenue mainly approximately client and reduced full continue from investor under and as feel significant capital. while our serve year, equity In custody trillion markets, to was activity grew X%, and corporate equity deals. continue This driven we we about rates new markets, pressures the we to optimizing derivatives. by in client partially strength clients onboarded

hedges, flipside, On activity. as by continued were losses excluding and banking driven XX%, to revenues, investment and macro heightened gains impact client uncertainty banking loan volatility on the down

X%, rebound largely we XXXX And cards, revenues revenues borrowing we grew valuations investments wealth, in that in levels. with along as In driven made the China lockdown. were by to see in the market continue in consumer X% we down benefits from

from up benefited also rates. NII revenues billion we exit consumer. on about and benefit Other investment shorter revenues Corporate short-term as part you portfolio higher our X%. higher were to as in allowed the duration And Asia, of see Excluding markets from divestiture-related by X in Russia the closed impacts, can wind down and excluding to legacy slide, continue $X.X the as of Korea us franchises, decreased

we continue would legacy close as be forward, to expect and down exit market. to an the offset Going revenue franchises we wind overall remaining to growth

about of XXXX, full data underlying related increase in with to guidance. XX% About Security business-led grew capabilities. experiences expense Services year walk businesses Transformation drivers. X, X% driven we related which and TTS of divestiture-related and technology. new was program excluding the investments in the risk, scalability for In an all to with approximately with X% On are Slide and up X%, to the and by those roughly include developing platform, the across show impacts, programs key were two-thirds finance adding and the expense line our expenses our control, client enhancing investments, improving product of increase

by also were driven like These to savings as increase to an from market. up the exchange of growth foreign the office structural pace, cards. measured macro well continue and front Across and by offset investments risk which expenses at largely reduction more expenses the well We benefit driven environment. as in albeit to expenses the control the increased talent, invest technology-related given from remainder by as include support X%, expense was And expenses, exit partially a volume-related as market by the translation XX% productivity the firm, year. front impacts this were office inflation. and The

XXXX the at Day, will conditions, driven progress levels we KPI at Macro factors as versus we continue to medium-term show those Day, some results targets by Investor On laid market you and monetary KPIs and we show which X, make at others way. anticipate out impacted tightening Slide positively that we negatively. the we didn’t along including Investor our

of able our executed as the were we against some However, we strategy. to offset impacts

see across that approximately bank. of include And these indicate and both rollout key drivers segments. we XX% new healthy transactions is we clients new where a as operating product part strong primary to in which underlying invest offerings our serving consistently again Client client’s up the strategy. In as are wins are all continue marquee and from experience, TTS, activity we client existing the

share estimate position quarter For that maintained institutional and the number third year-to-date, of gained our XX about one we large we clients. basis points with

addition, we we suppliers manage Services, the client this decline market estimate onboarded have the to onboarded over in making assets, Security in some which clients while basis our XX gaining quarter through our strengthened in points In RWA income in leadership share their address valuation. by third in offset In we have Security gained to about of our helping including that this of evolving position Services we X,XXX year, the landscape. revenue fixed home And towards global market. share our card. chain year, markets, supply new of And we progress

growth market brought maintained new given into in client but on our line cards spend and And this investment In in growth translate growth year, end-of-period or impact branded loan we point. services. XX% at up wealth, were advisors balances position. That retail have cards, exceeded new in lost up said, assets interest-earning expectations share areas client market while assets, this of this most the banking, XX%. importantly, top Card up volumes both in like and our XX%, didn’t and loans we valuation,

targets diversified made summary, against our This environments in the changes medium-term. medium-term the progress right to good the model KPI many have is since highlights Day. the despite business over adaptable strategy we we that Investor targets and achieve backdrop return in our significant macroeconomic to our So

on quarter, fourth more we by deposits Now income, by driven cards sequential down legacy franchise. turning in by Slide Average a than were as XX, $XXX cards loans. and markets. ICG quarter approximately In offset back largely net declines fourth the net to increased income the growth loans services, show and interest was and on basis, in interest million

in by loans deposits approximately by flat. of X%, were impact the Excluding down driven were translation. franchises and declines And exchange largely foreign foreign translation, legacy average exchange

increased deposits X%. Excluding were foreign Sequentially, up and points. and margin our were by net exchange by translation, average X PBWM up in ICG basis deposits driven growth interest

On and mix. Slide credit XX, show key corporate consumer we

We are the over with well for reserved billion reserves. of environment current $XX

of exposures quality services within the up feel is just And X.X% card and in ratio, X.X% we In CECL to lending Our both portfolio. of that, cards X.X%. XX% of U.S. nature very X makes makes are And approximately retail XX% about good level. branded that, above respectively, Day funded PBWM, loan and up our U.S. our PBWM and high reserves is And cards. XX%.

card over continue Additionally, rates levels. customers. NCL just And exposure total to is our well XX% prime of below pre-COVID to be

remain In our or And clients exposure loans are a scenarios. to XX ICT line over and portfolio, exposure, Of about under is our is grade portfolios range and total investment of loans. subsidiaries. That approximately low their the continuously non-accrual corporate points of XX% with our total basis XX% or concentration we investment pre-pandemic exposure, grade. in said multinational analyze at of levels international

So environment uncertain, reserve quality, good levels. geopolitical and asset we while the feel remains and our macro exposures about very

Slide and and On strong maintain sheet a was $X.X $XX.XX, balance [Technical per We $XXX our and or capital we balance billion maintained show HXLA of we sheet. balance our just XX, about up consists value X% summary key liquidity trillion And Difficulty]. from metrics. under year Of share book sheet, quarter ago. a a our tangible very

On CETX over quarter income on the from quarters. more first, XX a third points. our Walking $X.X which wall quarter, Slide to to common, billion the drivers the end we the this next XX, of added show net of we targets provide basis few generated and sequential detail

the dividend, form basis we returned common points. which $X Second, X reduction about a drove in of billion of

end point XX a XX investment than with largely capital quarter exits, increase impact We the of portfolio last drove the optimization by approximately closing increase. an the XX% Third, remaining basis ended basis the ratio, market our point the CETX driven RWA of was AFS points quarter. higher moves on X the AOCI basis the finally, through towards and quarter. And

continuing the XX% exit XXX consumer hit internal book. capacity remain absorb management see, have it our to relates to impacts to will As allow to pause any ample buybacks quarter, this decision our That we make target, and continue at while you to which quarter-by-quarter. serve on will signing we CETX And to as basis can temporary us clients. includes related that point Mexico

quarter. by is of XX% the XX%, Investment X%, on for Banking in Security up On equity; in X% the Markets increased decline for XX% expenses range Institutional overall Clients a volume. the NII; XX%; in in transformation, which TTS Revenues FX Group in and partially fixed XX, up results with services by by translation strength show in revenues volume-related up revenues investments, fourth increased and productivity this we and offset by the on driven offset Services strength continued quarter, Slide revenue, down specifically our decline industry Expenses savings. business-led income, partially

loans of billion, million, of partially credit net driven the was exchange release. continued of by X.X% an credit translation of slightly, losses ICG the and foreign impact optimization a ROTCE capital largely offset down million, higher $XX quarter. $X.X delivered net down by in driven Cost resulted credit expenses. and our $XXX efforts. higher for cost were by of ACL by approximately XX%, income And This driven average

loans Excluding X%. flat. roughly FX, were deposits were Average up

impact deposits Excluding up foreign deposits up X%. and of sequentially, were the X%, were exchange translation,

approximately billion to year, of $XX by for net ICT grew As of full X% an XX.X%. the ROTCE $XX.X and income, with billion revenues delivered

X.X%, macroeconomic offset X%, risk retail Revenues up, decline by included growth as average card volume in X% credit Management driven fixed build by in investments interest quarter by wealth X%, which driven Average PBWM growth payments were income deposits in an and and investment largely deterioration Expenses our while by other were platform. the to by build the a non-interest ACL increased in expenses. driven $X.X and was higher and a higher reflecting driven Personal initiatives. product Now business. Wealth ongoing clients And this of billion, decreased reflecting assumptions. transformation in Banking up a of particularly retail X%, services. and normalization lower NCLs ROTCE was we Cost reserve loans were revenue revenue and in show net control putting our Slide cash XX, work partner delivered up in services. on results partially of to investments turning income

the revenue. For full on XX.X% PBWM billion in of year, delivered ROTCE $XX.X an

show On decreased divestiture-related impact markets absence results Revenues of we Korea. legacy the driven driven largely impact to franchise. XX%, by Slide of for as of the X%, XX, related exit the the closing well Expenses decreased last by five wind as primarily year down.

driven portfolio. Slide by On XX, expenses. investment Corporate/Other the from for driven consulting higher by fourth for quarter. show revenue net were results largely we down Expenses Revenues the lower increased

Slide XX, guidance our for summarize we On XXXX.

is earlier, continuation a Phase mentioned Jane of X. As XXXX

as and towards XXXX eye revenue billion roughly excluding We Net execute laying the driving CETX as a credit are cycle cards to $XX expenses billion, any close value. announce for evaluate will through exit $XX impacts, we will also XX% range we DFAST backdrop, continue and of target excluding in losses to shareholder continue future the to to expected XXXX the earlier, impact. potential that And as met With others. an invest, foundation the in our long-term additional divestiture-related divestiture-related be and with next normalize. $XX to go said be target, the we and billion, to expect continue we to we

we pace, assets. driven of a expect by interest for show and revenue the our be XXXX onboarding and of our the the right of revenue XXXX, XXXX I page, to excluding NII we Services, rates to additional On impact and divestitures. from but the expectations NIR. and increased actions. we just XX, In valuation business for a at client side Slide by driven of In grow we mentioned growth tailwind slower a on and XXXX, TTS, market And expect revenues expect Security for bit

We market the begin becomes of start conducive China And and valuations in as lockdowns wealth in rebound activity. investment client banking backdrop to to to rebound. normalization macroeconomic a as more to expect also assumed somewhat we

level the for in flat As we market, we relatively expect of saw be given XXXX. activity it to

the and PBWM services growth rate to in NII guidance of particularly NII and ICG we both U.S. Now benefit non-U.S. grow in XXXX, as to continue contribute we business. hikes expect and we for turning get our cards, to volumes, to the

reminder, a from in year includes As of reduction XXXX. revenue expect XXXX, in closed to and the we this revenue guidance exit franchises legacy and we the the close that for

a XXXX, Slide of are, the to increase in enhance to to to expenses execute Turning the transformation our decisions I our strategy. made in number further main efficient. reflects transformation we’ve XX. as company data, that invest ultimately continue and and first, technology control make that risk In mentioned on just And drivers our we and our infrastructure and more

business-led execute strategy. as we against our Second, investments

Third, elevated by are revenue And increasing of expense benefits volume-related line expense, X%. expenses mainly exit. offset savings with the in from expectations. inflation we in expenses and productivity with across total firm the our fourth, compensation levels technology by investing technology-related partially And impacting

recognize in we future. efficient certain better, are investments While investments company that more will These a and a us expenses. significant to is make the make this we that in have increase I am these

little said talk the medium And That bit was frame finally, Investor time XXXX X X medium-term we years. XXXX. about to term At a the Day, let’s targets. represented to

Day, the ROTCE the target changed has to not, on the environment XX% medium a since lot a while Investor So we and path to in strategy has macro are XX% in term. our

medium-term consistent CETX top our to of levels continue expense capital range our line expect contribute material achievement to revenue and We target. the with largely target XX% to XX% to growth, ROTCE reduction

the where certain that, of across perspective, stand which a our the execution through pace have globe, and today. businesses strategy, allowed we with coupled accelerated you at to higher NII rates much From faster So revenue growth. moved accelerate. has let And a walk me

necessary wealth in the as to in Day, with slowed. consistent the and expense we of the CAGR exit. expenses in expenses revenue At end term, from over reduction this, ongoing investments From closing term. main medium have from we The showed an the of the be investment the need the expect businesses which will expect structure. same now at time, Day, of be will franchise a to and revenue the organizational three normalize X% XXXX. we Investor banking of the the will as other perspective, Investor benefits and the Despite of X% bend control drivers including simplification from towards expense transformation our curve to reduction the benefits included medium And exit, legacy on the such

the transferred time me upon remind legacy through the a Of to is $X typically $X or remaining year. agreement billion, and to in a stranded The roughly services this to at you, $X lasts let takes First, transition billion the billion buyer are closing point, costs down, about expenses wind which relates potentially franchises approximately billion. ongoing eliminate. that $X

investment and simplifying our reduction we as future. processes, to as those manually expense the from we programs focused for transformation Second, remain one. generate mature, finally, intensive on in initiatives control we expect the realize organization, technology-enabled transition efficiency the to And in and opportunities expect further

net and a build to normalize expect releases continue any volume. still future and perspective, losses of function ACL macro be a From or to credit credit will we assumption

Jane, path along medium and in we XX% have So rest our to ROTCE while of show the to I, and shifted, the to has prepared up, the points continue the And firm proof significantly the XX% term. remain components our are to wrap way changed world the achieve and on demonstrate the progress. to

With questions. that, Jane and I your be happy will take to

Thank Glenn Schorr first Our you. Evercore. with will question come [Operator Instructions] from

open. is Your line now

outlooks. all They these very Thanks helpful. Definitely so are appreciate much.

path heard on So getting my is target. there the I a to about is track. determinant big ‘XX, comments question process. you and to in look the on tangible if at medium-sized and/or outlook here the really to take Is it on at spend current from the your you return will, getting is many expense if there, up that credit of end like the is step the the material a

So tangible from Thanks. bridge just the gap I’m today’s on in trying return numbers targets. to

question. Yes, sure. thanks Good the morning, for Glen,

I some of both I down to middle the prepared medium continued going the what’s of ‘XX. of businesses then strategic referenced, drivers but give start when the remarks, on you countries the generate transformation simplification create restructuring, will and term, for. the both in we expenses benefits it that line guidance line it’s revenue we top importantly, did org the and gave about the to expenses in the will, these and opportunity forecast. the exit The to mentioned exiting of an these ‘XX from away expenses bring if growth, that X% all So the down. the we you we the going with to And this also from bringing this spend that type X% combination talk that here you CAGR it’s for And with the associated then

so combination The normalizes as down. curve we’ve of is it now, expense of we’ve over this years about credit which cycle of managing at are for through. seen that cost kind been a what kind is and COVID levels to time with next coming that consistent growth, of the couple talking And been bending of it’s revenue we’ve of prior some that

you. Thank that. appreciate I

follow-up your of one I this out to consider transformation. super process. there not poly, part on Just type Mark, important but quick is that my care. of the respect you norm, news there sorry But You this comments? staying normally but be lot to try been we companies, any other just a but mentioned put my able on of spot, people on I to you one would think you of make some – moment talking to

ensuring and investors. for right way on I important I’m value shareholder firm. that CFO that creates that appreciate this execute Jane, is of strategy I’m with our an Citi we this that, a and the firm something is in focused Glenn. on

done. so committed we’re And getting to that

Together.

Together.

you. Thank

will question Autonomous next from McDonald come Our Research. John with

Your now line is open.

XXXX. to wanted dig I into Mark. the revenue for Hi, outlook

you implies about for what the kind got consistent of talked X%. You’ve year, about kind this X% of X% to that midpoint with growth about revenue it

So up about looks the are is NII guided XXXX for And like be markets assuming the year, guide, you to of this it kind X.X%. the flat.

So fee what’s to the helpful? Is little a would enabling more the of X%? drivers X%? you above Where some that it businesses? to there just color are And be get are those

Sure.

make me a comment let NII. So the first on

the annualization of occurs rate back of really that that some is our the both outside the – that from reductions but mind will in keep particularly page businesses, Just the to in and then also that And with the legacy U.S. important we that see growing the growth. And franchise, XXXX. given our NII of year the NII contribute over keep increases saw we’re the increases, both mind growth half will in in would we that the expected we comes on number in continue services given of in makeup I’ve franchise that of that

while of So in real normalization did it pace, NIR view, than in a we mention be slower see we a underneath to that would an NII, saw what notwithstanding that slower point expect fact the XX% I the From XXXX. in down those some do is that both the market some that pace And momentum would valuation. in what would XX% it’s with year NIR you hit this play banking, well relative as normalization some to to certainly wealth and in point saw out we normalizing as line, as out.

at for towards of kind the the envision Okay. rise cost of half if should the and the – XXXX, of of clear mean going this curve Is sorry, we of XXXX. bending that that it? in they of Is out terms And the peak end to early plateau of then part kind just above ‘XX. is expenses But idea already. that back then how XXXX

not into to guidance. going ‘XX kind get I’m of

of will for be curve that order curve, put except I’m we the ROTCE bending. target, levels John, of see ‘XX. to ‘XX, We get us that that roughly it will ‘XX, to our we through XX will that to into, to I’m and to that of I we will the number XX kind bring to out by to equally confident of say about it to and confident I’m that for kind bend get this the but down needs the specifics end going in get not get ability

Thank you.

Our next come Najarian Erika UBS. question with will from

now Your open. is line

Hi, good morning.

Good morning.

curve. the But and means question – we all first it the slide. clarification the Jane about obviously. is what to thank Great again, for you job, My bend as on Mark, think

are you investments appreciative transformation. accelerating are investors your your relative that the think I to

X% think about – of what’s we measuring means? I’m curve should looking but hump, As we as the Citi guidance about when it think necessarily, the how XX% what’s can bending you’ll going it better really you think – an the efficiency that CAGR that I we like Can think be it X% something to about that medium-term hit should able past ratio? hit ratio? to think think is we we mentioned revenue is by you way? efficiency XX% to that way ROTCE, And for XXXX? that Against not of

Yes.

committed efficiency that. period. XX% that’s getting talked So we We to than to less we talk it, an consistent in about and at ratio about medium-term the did Day, Investor and remain

of costs bring as certainly will And we we metric the so our deliver that that part down. be on

I and other I away, exits decided the going portion portion different The Jane cost. rethinking and organization are our stranded has just do that mention and think rethinking and management operate couple terms potentially a we entire how, important of is. go very of the tied been it least of mentioned I’d way those the in ensuring aspects business means of with the we obvious think that parts are that of clear the the very, there away, at of team the our costs a importance thing that’s operations. the costs you way

– third manual. as technology, a that I And up doing lot in is And right? invest this think so. continue we’re XX% pretty now, year, right technology of to is what we technology piece significantly and is so the or

that us reduce if be expect activity, allow you for next manual cost will, running will year. down We operational the That to to for will up bring build-out, firm. lot it the and X% that of a technology

getting an target think the about and period will it importantly, in And you of I so how. operating that I to start efficiency But of over hope, are at the see talked we those to Investor that time examples, Day. improved of a couple

confidence I that we’ve when executing we’re say the and as divestitures, you much getting of around tried the timing speed urgency possible about on the can example, the you also get of closing executing. wind-downs some as transactions which many by closed. for those provide the And these clarity And would to past the on with of these be we’re will

help. will So that

As three will Mark of curve. what be that structural said, drivers big it’s in

I open in the wrong XX Thank you. the was like slides looking have misspeaking. computer. borrowing sorry, efficiency. at I’m for And Mark, I

okay, That’s

your The to that sense think Jane, second question divestitures. of investors with the appreciated I regards maybe and urgency you this to your have

the still table, And I about such right think room thinking you’re options investors elephant think I continues are just in to be Banamex as now. different announcement considering an wondering sort you I’m or selling on on the of Banamex the expected IPO? an if

the at dialogue active in we’re moment. So

not are in position here. do going viable to are because we detail I’m as a do you’d obviously clarity We comment great And will path both a in very you give dual pursue when to but we So continue expect, here. so. to options

been the about we’ve fairly timing. think I clear

separating of that we franchise also franchises, from consumer two are the see a very part is selling franchise We institutional the our institutional network. out global important the franchise because the we’re

is delighted in to imagine, pleased lot key dual As clients tracks very today’s we pursuing that will for of corporate extremely our play something And separation. work that so. do the in we I’m the underlying have you with there. we’re the of that announce, But in environment, That Mexico can world when progress a important supply and their a we be is to are work. many we making chains. around for role

Thank you.

will Fargo from with Our Securities. Mayo question come next Wells Mike

now line is Your open.

guidance. Hi. revenue still to trying I’m this expense get and over at

or XXXX? you curve are a minimum until the one I the operating not cost that reading flat leverage implying So late have you’ll positive Am XXXX. So at bending hand you’re correctly? leverage for on operating

the for hand, reading in I you’re On Am other positive XXXX. guiding that correctly? leverage operating

consistent the targeting think likely positive that That it range does that – do to but the going the we last on are way do growth that the would that bit broader we as in growth reflect feel leverage growth see Mike, suggest gave out track. when guidance get less XXXX. And you our there slide, I confident to are, be year, line. right than we with on we lot things the about. a don’t a number talked there And we’ve you will here guidance roughly recognizing in in to operating number on top strategy the are we will on environment. little in math, deliver similar XX of that’s in would But are on getting a the XX delivering ability we a the the the put

or other for second a a and follow-up I’ll then – then follow-up, And requeue Okay. my question.

And I that’s two now. Your earlier consensus had than quarters CETX think ratio XX% is expected.

basis was You said points. XX up it

negative sell to have that repurchase you doesn’t capital and temporary that understand could go if that now? Or allow So you I ahead stock a hit. Banamex,

buying So your sell start a fraction like temporary that don’t of value. capital have hit, at just back tangible thinking I’m Banamex, stock don’t book

my on? with wrong can what logic what’s comment So part or of that you

I’m the, going sell Banamex, on in don’t to Mike. jump

franchise, we an laid between and the other. the out As around market clients connectivity across individuals – fit you net could the and consumer in the laid clearly imagine, we each Day. needs focused institutions businesses selling have so high as with franchise. cross-border very strong worth we we multinational does are and clearly with that and out are It’s not It in emerging Investor consumer strategy that

as investments a taking short-term regret medium math, when the that and taking, are at the in And would you’re strategic the that think not in all in perspective. to the and we’re that we higher focused – it from actions long-term. we the our consumer or sell that our the interest move. can shareholders returns. having we franchise So path of into and And shareholders’ we in fit we don’t franchises is run suggesting What long-term the deploy that Banamex very I on see very short-term you and see we’re some medium is capital

Thank you.

Ebrahim Bank of will America. question from next Our with come Poonawala

Your line now is open.

Hey, good a morning. on follow-up I capital. just question guess as one

the from Citi coming the of second hit about of is end there negative half if any impact think sense, Banamex. this out the taken the Mark, But have we post would say, As game reforms. from why reason an Basel let’s any you’ve outsized year, test-test,

about idiosyncratic us something could it give hurt business get half back hopes sense, perspective don’t the love mix just hopefully, the another come our as back is and there Just get wondering bank? we for to we any in buybacks I’m a the that Would there? disappointment

Yes.

built we’ve the out, significant over pointed we a course the of as of capital look, So amount year.

middle is of ahead in And have for on set of DFAST front we some that the obviously middle the do have a year. CETX the that of year, will of temporary are we ratio. that’s see that to will have outcome we that We target a impact We have what the the work. do us of exits

still And out fact difficult take that think, significant that in industry end consideration way may sure those dynamic is it however this tailwinds is and that game That to that decisions headwinds out. are and will opine play out when the we handle on a views or on it come final look, we of similar industry very they to will just with And But plays SACR, exactly there it get in into point to yet. outstanding. along will I what at aren’t really the whatever able final make we’re available. to that the an rules become for to think light Basel have I means that. after

at we medium-term the anything back should curve of like the your implies that guess the ‘XX, Am even there? end sense? I have bending guidance. XX%, the it end if to missing that that at of make an company $XX I hit just Got of this targets. power earnings it. does And lower Or north by

term. take intend guidance by that targets return of will year. – given to point ‘XX we’ve term what described and I’d is – ‘XX. out get XXXX. kind thing year is medium the We individual those specific in what only on we described any guidance for is you medium I’ve haven’t Jane we’ve through to of The those described, what I And you given years, the

And so in. just factor

get we that you’ve medium a how think think given important. on view to got and I term, important what’s to on is think I that’s you clarity we’ve intend and I additional ‘XX,

Thank you.

from Our question with Morgan Betsy come Graseck will next Stanley.

Your line now is open.

morning. good Hi,

Good morning.

Hi, Betsy.

as know a to bit Wealth Management. looking had forward. to announced with you strategy for and little about Personal Jane, the you earlier which sense think greatest talked business fee fact franchise sheet the are new that the of advice more sets opportunity a the want Could U.S. did give I on the piece. I about of – expand ask more that channel, just you for indicated to a have move us pieces, because some some an some balance the that where there you as into. you is channels, And growth a bunch of different within opportunity already to

So could most to help important going on shaping forward? understand, pieces I’d Thank just you. on. execute you’re that perspective, like And business which understand to the are from this your us planning how

And above. Betsy. both answer and of Great all the is here I Mark question, are the smiling think because I

in we if year, results from the various and in Asian is an that’s can it other impacted There So see Asia. and compared our with an board the you important materially China And COVID market out by to elements COVID compared down, lockdowns break that Asia we across do and see in to broadly U.S. the in of was last where upside? the recovery that going a bent, occur of with pulling slower competitors

And it. of customers. growth product. in are been of is investment exciting particularly we one about that scale particularly and different the start been some seeing right pure you see margin is some The the I across upside we pleasing the state. Asia we’ve from for there there. growth but U.S., the a opportunities in smaller in strong the as offering mortgages, Absolutely the And were, it together. the board. from in work business sheet lending the deposits, think this really together franchise some good a like biggest balance pulled offering the investment as got The our comprehensive franchises, had also So fundamentals wealth a the growth of there parts We’ve bringing that’s we’ve we

We’ve the this referrals banking Then finally, in from and Banking. XX,XXX the even between results our terms also had synergies, bank, I’d U.S. been referrals year TTS. alone. From the also the franchise, say important U.S. you and provides tremendous we’ve in linkages this commercial our up about showing opportunity Personal of there in is that, market

business between synergies are referrals, the So platforms. client common there them

multidimensional market over and in really be And these that benefit as the recovery building investing investment space an growth in well. appropriately line out continue should see in drivers opportunity the everybody will So we from. front that in for we – the wealth to in above able

So, part our very of this a strategy. is important

the key focus are to the growth we go looking forward We at we next as of excited the phase in are the And mix looking about and business pillar forward it. It’s as well, shift here. of medium-term.

that the more spend is here, spend execute required the that have accelerate to already to to accelerating? And likely as say opportunities or on those and you would you revenue from done investment investment sideways opposed investment is

since current look, are to it have advisors. behind our we this the in example. Uruguay, pacing, continuing we something in really, see net and of that environment, for think client growth have in And invest And said I – includes the the but as both is are you. last this – client year, you in middle Mark said can divestiture that we made remember advisors, that we I growth

pretty we we of integrating a appropriate invest business. amount in the such it’s market it, it’s So, because it’s a then order pace achieve need of them, in behind We and that in we to add? pieces large the one story anything And the are to putting more making investments place a other platform have strong. digital we been the conditions. huge many and will sure right that and don’t have with Mark, as that but not to upside

part past. this high business. add this – in a is And that the know I of you thing we Only Betsy, the returning cycle, seen in – is would high a normal margin, have

well want on XXXX. in the up clients we be market in brought to so client acquisitions, for brought having were And which through as new client advisors, XX% turns, having positioned

And so want where the well I we we to how think deploy be mentioned, we about But as for that. positioned are, Jane given we are dollars. smart

And necessary, when so that ready but we we will replace that ensure as turn. are for things

and started executing ago that was would it just I a – announced add, it. couple strategy years we on we the put And of

And benefit seeing drivers out say, should that the playing the be we positioned here. well have I historic when we as the well, market well. of So, investments we the turns are

you. Thank

with from Our Bank. will next Matt come O’Connor question Deutsche

line now is open. Your

this flat as leadership as a Hi. recent and on been the I market? about issue you in was XQ. be year. what’s And But to you to about view? of very Obviously, concerned FICC good relatively was kind I in you. flat I revenue. think an to driving you the your the ‘XX. and that some are point, think like just going comments back recent management that about Thank think the be And want in maybe I And not markets How And strong ‘XX, your leadership follow-up in to have strong of confident know quarters. RWA wallets years. about

It’s business, market a right.

year, a had And the got a We that so very that business. well have with very you strong know franchise. good very markets volatility good kind we year. of FICC very With can come said, year a any very, this

I positioned we we well one with client are our and go maintain to think number XXXX. we are well base, positioned as position into the

our continues position, to like But as going and number again, gain if to the things, share that macro central market wallet not predicate was moves, how the to and how plays market I how I activity and are that currencies it of to move including evolve more is like. well we positioned hold on feel continues how bank out. think evolve and a Now,

think up we based to year what I it call as had so know that as And reasonable relative a flat significantly a we on have now. is, is

of in business seen strength areas We well. have some also depression of this as

an example, for equity So, equity this strength, was derivatives, derivative real the year.

from and certainly of continue, with the a worse, corporate volatility is And another So, geopolitical macro that’s we strength there is things strength out or real to far. environment for world ours. that so some are the expecting there better for

Thank you. Okay.

you. Thank

next question Jim Global. with from will Our come Mitchell Seaport

Your line open. is now

morning good or Hey, good afternoon.

Good afternoon.

Look, But look little step take annualized, your at look your institutional. franchise, pricing into mix you business, just are NII you have in they going when XQ deposit digging retail probably deposits where maybe guys, your half down. that’s bit, at you have if seeing a peers, of mostly you a lagging hurt high you decent betas, NII. a Mark, to the already U.S., second versus

rates the mentioned You you from are non-U.S. and benefit growing deposits.

similar trying like trend dynamic when versus look through the drag peers of very pretty sort to on? big why a you in have Just doesn’t – going in chart? think it different the So, your that legacy a NII because is

you you are I say talking about followed. ‘XX quarter. dynamics or Similar in am sure I not fourth

have guided down different annualized benefits No, similarly just trying beta. I but terms from versus higher and growth, of deposit have to about some from rates, XQ non-U.S. to very a run am talk much dynamic a peers, you in rates

Yes.

or the dollar, And is our the I will ICG side, about couple potential So, I right. We of we business. year, and we about or XX% curves in our next or XX% just I increases non-U.S. about on have rates – I have point get I balance, and in benefit the that One, a in non-U.S. point got the are but of us. to move out mean deposits, importantly, a mentioned relates it think to to how the on as is side, when rate think you I XX% further dollar. things when think you and of forward NII PBWM mix will skew that U.S. the certainly think so got a would likely we so

if be segment. Corporate U.S. betas with not so high presence, they are international as our I here about the in tend to And our Clients think the as

in re-pricing I manage we here that did opportunities are the U.S. some continue so as think we And actively will there to

that of do international our the strength that to footprint, so I globality And XXXX. in our franchise think it’s plays

in out to the other view. a pick we volume growth, to up is The we with apparent start expect is on have the as continue, of NCLs card interest-earning this continued already thing as particularly growth from rates point And momentum And see see us to we balances. and would temper. the payment you as we that forecast that growth side significant normalize seen that volume

is will be And obviously so a Mix factor. two things I major think those contributors.

across out, drag but growing that As that engagement will reduction active point talked I I to legacy, from about. over be have we growth client both the us of delivering of that the some is think be you the portfolios, will important or factors management that we

XQ be XXXX than rate you yet I That’s just... run the forecast all less think ex-markets, fair. But felt I guess for right, I maybe phrase question I it didn’t would but and ex-markets your my

Sorry, am your question. I sorry. finish

Well, of just have bunch you differentiated you shared why a of reasons a sort franchise.

driving So, I am of just sense get XQ levels. what’s to trying decline the from a

to the I the mix thing revenues the up the NII. think at the clients legacy pick are and the legacy franchise got there. the of really products you of A when franchise large have you and that is look NII revenues we part cover

that’s in quarter. think Obviously, fourth the to important relative I have that dollar haven’t that’s element is there here explaining important. but what other quantified amount, you growth so factors, is seen that we muted a And would to but why the seems it like

you. Thank

Gerard come will RBC from next question Our Markets. Capital Cassidy with

open. now is line Your

I Mark am Hernandez [ph].

afternoon. Good

ahead. Hi. Go

can this has on incredibly well. levels is experienced your Mark, regarding credit since with losses and of forward us normalization industry as going peers you true comments your of credit The share low for the losses.

for that be for may that see But at trajectory when you or are that cards the am ‘XX? you see through sales, trying to out of that you their end by numbers. retail they how ‘XX So, or of is they the just that they to guys look look I what think progressing branded thinking? what pointed rate at peers retail services, One normalization do your

Yes.

under the year-end, expecting think at I more early hand it reach are Let loss me current then the trajectory rates will the to Mark. But to levels ‘XX jump pre-COVID to and see we level. I on in the

If normalization XX% with you to branded there Obviously, of about loss in sharing there are the of us. of sort now. have benefit way that the we that it. have been with XX% if path. sharing cards, think started what we clarity our quantify the helps of very we hope And got with you we certain worried rates. that was around a that But it important was most have as gives driver I about I more the I they now, was Probably sense CRS partners of CRS, of the happening payment think way much

is amount more now. certainty question a with that’s around happening bigger the what uncertainty. any So, big with happening a observations? there. fair the driving It’s But is the other of direction what’s Frankly, Mark, more normalization it spending right than

is on The I would add how could out. depending only you see thing Gerard, just plays this that,

Jane above the we back of in normal as levels play described. about sit down But how and all see across could we depending these it’s normal on we talk tick Again, that You very kind out NCL then timeline the up rates factors continue to just come levels NPL again, that point rates, to as are important here and portfolios. reserved of well these well to out. – macro

back you aside, put line And reserves have a and But of kind described, the as established. levels by NPLs down. see been aside get to is recognizing macro Jane if that trend you up that tick funded it the above normal some so then just volumes the come exactly and could extent, assumptions

also with a the be market bit are they seeing that be more that as manageability of do at have strong and of end much is we of to about why into, frankly, movements are here others by a going unusual very this. ticking that one. It’s the you such And happening sense we market this the driven bottom have like got all mildness savings shortage likely of that supply labor over and still dipping such we is Also as consumers if you recession. will normal But the high this as not got the have in the an demand. are

get kind unemployment you kind trajectory? X% guys of unemployment we assuming the what quarter ‘XX? And rates, are it going into Is – first that of by

couple a of I think things.

than would of about one, be what a it, bit includes you think we if downside a recession something about base say you just as just approximately forecasted overall kind in we case we rate, look So we of talked scenario, at just that and our are it, the mild across X% the when unemployment different average would severe you for I a scenarios when that. reserved more – kind have.

Thank you.

next will Jefferies. with question from Usdin Our Ken come

Your line is now open.

Hi. Thanks.

quick questions two here. Just

And kind us with just on just relationships? from expand card, on the some through that First with internally know I or has happening how rewards card one, the obviously, see But talk of it. funding has incremental card just do either NIM should it what’s the flattish. you allocate rates towards here? of can you the to And new been of either kind NIM we

What of not NIM. say have the traction Ken, of the am I we it on seen the to card early get that good side. into guidance going Yes. on I to will acquisitions is relates part year as in kind

But is made that traction. of relationships launched a number the we those that want interest-earning with loan and the to of of on average And good the we we well products And the growth and or have we the think rates of on as American. some the don’t really into kind to Jane, investments get guidance of growth very you that also heels and that seen. we point. balance level helping comment some NIM I that increase partners the have new as the have want of have at We may with have this in at I the fuel have to aggregate seen card spend some seen

digital, new I those as drivers of that And track Yes. innovations franchise. a acquisition. other record driving in all custom driving strong we seeing growth, look mean are both have accounts our very, driving we it the From partners, as very was the and XX% returns proprietary strongly profitability, we products the fabulous moment. cards when of performing in at the really well cash, are at our the

to that the really important digitally. us, level. driving growth that’s can Innovations of things XX% of in new America you just like the with in that a category. partner spend customers fantastic product engaging see an the taking And refresh next So, is

the and So, of and always be return the there the which I I a lot a reasons is growth say, thing. prime to margins good in trajectories think portfolio, is and a the about excited other here, pretty as

in article I that have about Thanks. but Great. relative second there the inside wonder And can KPIs wealth was, are week. an about talk and this the just that business the And – Day. my to goals changing management discussed Thanks. at you management up you question management your the you wealth was making progress also if the Analyst that, just about

business moving we of the from role capabilities as time helping he I strategically strategy firm. components because thought I private is said, important a have to the that be offices, other forward, was at put next to MacDonald supporting mean make leadership important with laid the with to got move the the investors, to X funds. investors those various but an we we Paco play as along Day. ICG right the wealth equity, business. family bring is full to lot Investor ago, out going drive relationships the also that wealth phase, with around sure sure. He firm’s to we asked And I going these clients. Well, together has And change now years Jim to the it we had sovereign

to move. we as leader the we so. the business. look for we indicated, the business have in felt we well the was to everyone will go strategy have, meantime, And that forward time sure out positioned So, as a strictly moving I and am feel are to be, to follow market are and as I next right grow and And make our that looking and usual do as of is the that turning, we

you. Thank

next from Research. with Our will come Wolfe Steven Chubak question

now Your open. line is

Steven. This Good is filling Hi. in actually Wang afternoon. for Sheng

how should – outlook about some based provision this think to they you your of you math Just provide on headwinds? or the CECL. peers noted of growth potential incremental billion an base so see if your they X% topic sensitivity we macro expect and Can to XQ levels on morning the just reserve $X similar if wondering of trajectory versus unemployment one could that would credit, under reserves assume and the

Yes. build as fly. go scenarios. the here I you on Thank of you. we ahead reserves, these will sensitivity I them and scenarios with going not are am That I that three I do unemployment that. And we we kind used against or a weight the the building to this quarter will What assumption. scenario take is and will built terms those it, base scenario And that that in mentioned, of scenario, baseline, downside mild call that unemployment X.X% scenarios. base the so I in we upside and recession. in was, say

was the had a there in also the the scenario. X.X% an a We in And And saw fact I that to and they were we does is largely, the in I PBWM volume of quarters built so. reserve that Unemployment with put that HPI. the when reflects, about business, went those this then across reserve had the very downside. is are the downside remains below the the that be quality or weighted what established that that upside X.X% around downside growth And cards. the in as scenario really weightings those it into towards with The factors consumer quarter quarter that well a cycle. we good mentioned. that I quarter-over-quarter earlier, on think the have But specifically rates it scenario. would that up change would what the normal in a do and in say about base got average that skew loss had mentioned we in you we scenarios, have also weighting the a that and was quarter. largely to cards portfolio change there. And pick we And The

going but quarter-by-quarter to you for models have kind gives not you, we to we underneath do obviously, basis. to that reserves. these And establish perspective hopefully, as a am run of that scenarios what’s I used on some So, the that

and at the look one the I our we portfolio When would with corporate is – XX% subsidiaries, the is risk areas are side. sometimes international firms just where corporate also credit client with equate in gets look mis-put firm, we on credit that of jump don’t the take these our global about multinational exposure this grade. and their internationally, When footprint. I of investment

that the we think important area where as you of take to as nature the understand we Russia I risk. corporate others, and reserving will of that’s with another saw conservative credit look at portfolio, quality where think So, be the corporate I we But take. we the loan in

really Thanks. it on environment. seems some depends a as the a revenue That’s improvement XXXX helpful. of part like your And then follow-up, for targets in

equity markets, stabilizing that example, rebound? And targets to in the are medium-term noted Jane, different achievable designed For also IB you environments. be

pull saw might to be you continues be talk the of So, revenue XXXX, to we an about challenged just some in backdrop that if the you might levers like can offset? provide able

investment of the could kind but it a continued markets I in also have and more this, currencies drivers Well, you that different in of flat have have rates continued could don’t on you depends for business. anticipate – the are what upside or than right. environment, Because could banking, mean volatility pressure but could you

can a are scenario and of there puts lot that one So, takes out.

what’s we that strategic them. diversified of I have is portfolio important really that businesses connectivity to have a think

did often we shifts that what we as not we that able performance still may some have in drive allows is that environment so that were And this significant the year. for way to predicted as

the vary without calling to that’s here, exactly – that doing. exactly about we and us execution, so push on guidance strategy to how the steadfast the really And really have remain we what around talked confidence are what it that’s what’s from and and gives

different the impact impact the will that you also ‘XX, but seen And have investments it’s certainly that. And have of cycle, you an we not just of important see been of part the the making.

example, and basis For XX year, transparent been this points services the we increase. around in have very

leading We share have months third to the XX up the wallet seen quarter. in in

happening more have to you not and terms drivers, together, in of as more So, got market, also drivers you what’s but the only here in got the referred Mark have strategic also in synergies. the kicking

show It’s market KPIs why on the indicators those which a Jane, in we not top great often point, the out of some of upside because line, are come the as the it evolves. up may always There is there. that’s put

you. Thank

Mike last Wells Mayo question Fargo from Securities. Our come with will

Your line is open. now

Mike. Hey Hello.

Yes.

So, one one follow-up. question and

or have there. says thing, we guess target have you out impact if I you back divestitures met but months CETX XX% assuming And six capital by a a that Banamex are the slide have I is why from would you midyear, have So, already kind you of guess you it? – of your to target already when potential a go

not than it. about tell Mexico, am clearly see I One, you trade. And better right. we Yes. trade, you have And I couple are is that say where to Mike, history happy but would we I are about understand I given where together, a our surprised us strategy warrants we of we just that asking our what trading where we trade today. we And think things. that

as So, could deliver buy if are part do way I we the we for back, will, we right, as soon we buybacks right. that is shareholders. could of to value do buybacks, able our we mean

to impact the is in CETX say to strategy. the there our a continued accordance across is of as rightfully but we And And able you XX% which Mexico of have place, get in of that ratio. particularly out, of without and that put what them, our in take did parts thing against our the strength we in that get revenue number business ahead What’s been good income. we will is has see second takes temporary have job have puts done business, particular, The in you delivering franchise, that would markets a us, on against to the at damaging again, the got fixed performance sooner. we and many business, RWA. a of particularly was, metric really pointed with exits executing And I out our to have

continue we And of over absorb quarters, from to of couple we positioned are while certainly we manage be headwind, two so quarters, so and that over want but headwind that of also to the mindful next sure to that make clients want always, couple next serve the quarters we exit. manage And as to next we can our we that. that over the the temporary

you we have sense And better managing this. lost we gives that are hopefully capital of the So, but shareholders. it, importance for on not focus to returning actively a

to Yes. And mean we that know want to it’s I as Mark well. us. reiterate says, important as where we very I trade.

are moves made do all have account. say to a we want continue to hit that Mexico, that against ourselves going are in say to to We be want management sure that taking to we compensation what impact our shareholders’ just align we what and we into and interest, CPA the delivering number interest are we to we with various sure going these And we of in dimensions. we And essentially make delivering. make

quarter guiding being guide, related level. as from delayed XX% think NII quarter the ins there your lastly, of was markets might then the down much fourth thinking was And higher that little the clear. very outs the That’s step some and be are I JPMorgan level, benefits U.S. Alright. from outside is there? fourth excluding What some a implies I not as but XXXX, for down from

Yes.

points of couple here. a got You

see into won’t start levels, or obviously that’s increase seen side have So, as slow and in one terminal momentum going betas of pressure we on get ICG XXXX, to important to of the is just to will the of hikes some late happened that the as annualization growth the go the other pricing in put on the we drivers ‘XX. But we year. NII the as be rate

plus And in so a XXXX. that will be

earlier, contribute continue to NII offset mentioned XXXX. the will card the as will that see I which see, also that will there then right. in You increases will some that volume mix, side, the franchise, anticipate legacy the and benefit anticipate growth, outside good particularly a momentum, be rate to us And of U.S. we the be given will we of as on our that we

occur downs that those NII. earlier, the mix as I continue, And mentioned does towards so skew revenue as wind exits as

so set. that to have of get and kind over that to that grow will the we grow we to will And we target over have

are the takes. those puts So, and

Jen are for over the turn now There Landis further remarks. questions. closing you. no Thank will I to call

joining Thank today. you us everyone for

day. have a any out you follow-up please Thank Have reach great you. If IR. questions, to

fourth This earnings quarter review XXXX does the conclude Citi call.

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