Citigroup (C) 14 Apr 232023 Q1 Earnings call transcript

Hello and welcome to Citi’s First Quarter 2023 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.

hello everyone shaping year. and Jen, you, XXXX another Well, us is Thank to interesting be to joining today. up

the to was to Given I what the observations weeks, good will few am share quarter. turn events a going tumultuous and of last some then we

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express from Citi is And world port our my that it’s And I the absolutely to serve also the tirelessly how to management disciplined client Recent run to want storm. to people. a colleagues as last turn shown the they our firm who in are worked around have and month paramount. We to prudent thanks in asset liability selection pride clients as we in capital planning. events

is and While focus myself. things liquidity on going walk to our few you through a Mark to and rate our risk, do I approach interest capital, mention want

In high quality terms and duration. loans of assets, are short our

We liquid and investment have highly significant securities amount cash. a of

who their of years clients XX% that from XX with management stickiness. It’s efficiency, collections, world in and these of and deposit of trillion payments $X industries aggregate a resources, why across and of and XX% clients all over nature. capital maintain We sit their are trillion use $XXX run sticky deposits their billion many flows institutional businesses relationships And are to deposits are their cash an these that around because our the we deposit liquidity diverse we payrolls, old including And increases XX% funding our have they set operational available that more. or deposits. worth client how comprises including our multinational fundamental are regions, fully HQLA of which corporates, the sources, this from from chains, accounts of Indeed, related which over of integrated into is XXX%. and base, deposits these how and are of of particularly consumers, data in is our these cornerstone their The deposits about our manage greatly $X.X risk services: also liquidity supply working Most compliance. nearly management. deposits of integrated operating solutions. three LCR our their of clients and are liquidity

liability concentrations and segments, stress nature given and strong risk very a we industry confident operate the region. testing. And and we exposures, Finally, across that our our are size both client assets of framework rigorous at in looks

diligently is manage institutions. also counterparty We risk, which interconnectedness of critical the given financial

environment labor navigate The a Fed we been which services which face, signs of more of in position degree cooling uncertainty whatever use inflation, today. we given manufacturing. policy is are the We relevant than as has stubborn continues particularly rate battle strong to to see even to in in and

to biggest into rates duration it’s recent terminal We ceiling that now expect credit event We depth in disinflationary the on contract. of unknown enter out. recession severe believe the U.S. this and be plays in U.S. how more impact a the exacerbated course, debt interest year. later right more and That a and short-term the likely is to now, shallow But crunch. be credit could will the

the similar quest In on energy difficult be outlook payment They bit to from have a continues inflation. some Europe, but is asked prices the to brighter. ECB more lower-than-expected and help a

places Europe stimulate as However, challenges, burdens dampen difficult. defense higher in of such costs more sign to sadly increased no growth for need will more the energy and war fiscal Ukraine and the inflation that ending, spending, efforts structural and make shows

the this my although to India, the momentum our Japan is consumer the firsthand shoots than Asia, been bankers in to clients year. reopening of Chinese green in I Kong various region, has Hong many our In rebound trips China talking adding the saw expected. slower and to to and

see We as and eye into a flows have our close U.S.-China in economic global heightened and we on network. cross-border And increasingly shift fragmenting TTS geopolitics is the relationship becomes this across keep and a translate blocks. volume strained to

and of in line and income of of Now and turning billion reported X% an ex performed expenses were how we both with our revenue to We had this revenue divestitures, growth guidance. quarter. EPS good $X.XX. We net $X.X

XX% those have consumer been the nearly India from of the benefited would ROTCE Our and our X% of of in sales Vietnam without gains. over and closing businesses

revenues performance up activity cross-border in TTS the XX% with our of strength XX%. core the good X and has our cards up of Let continued rebound on In back strength revenue performance travel. corporate of in me from commercial go was Non-interest due to highlight increased each to businesses. to operating quarter-on-quarter Services,

executed as new our and excellent new higher year from income shabby performance in we X% and a from Securities engagement rates from up ago. fixed market, Services onboarded up from on wasn’t too benefited corporate We revenues Within rates. continued were benefited XX% mandates, clients. either, our AUC

both was XXXX The you first markedly no of may and slouch, quarter our was but weaker, down as quarter of although a north was third it had however, decade. much in still in this cash, best revenues derivatives recall, billion. $X Equities

increase U.S. Banking cards as businesses are investment-grade in were been of and flat, down. in saw softening growth the quintiles Services And and have March, and spend roughly over all see continued beginning digital Branded drawn beyond. the excess quarter. quintile signs levels historic entertainment as other XX%. to of significant momentum rates see almost deposits. Banking gained essentials but spending Banking, and continued experienced still Retail household significantly the course pre-COVID was good notable Savings consumer savings trillion down. normalize pickup, savings, averages. XX% a have continue Travel upper were $X in up activity to were in did market. also and revenues including the income, Personal drivers there our some while a the momentum Cards In all categories again, the to and mortgages below of a We increased installment of of and saw down in we but to lower growth the grow lending Retail in

as slow. growth So FICO we’re and services lower keeping spend bands a diligent economic eye on the

in remain revenues Citigold we and again, Despite down were prospects all year our beyond. drivers and confident revenues advisers we client while to accounts, expect these and of this acquisition business. Wealth Finally, headwinds, about through later challenging client flow growth were the to solid, the

cards NCLs the very in low We on normalize consumer to and base back in recovery. Asian quarter also long-awaited this the early of was NPLs. corporate signs of saw built balances reserves credit revolving poorer macro outlook. another health in our We growth evident a continued the while of of quarter in

have CETX temporary to at to through a earnings. upfront deal room continue we for sign should the our absorb impact capital Finally, With now XX.X%, we generate ratio Mexico. we our

to pursue we are capital a As shareholders time. over we dual-pass committed of amount year our the continue you to to increasing know, return and we

in can on the operating good later the lot this and a you from we list strategy in everything closed next close despite the shared and see as done else with at Day. and Slide sales businesses addition Investor to we We businesses going to implement our of got consumer we performance year. As are from Taiwan Vietnam. the the industry, X, in quarter Indonesia you our in on India

eliminate sales simplify consumer Asian our complete, intensifying our organizational stranded will then to are and and structure. Our we efforts costs be

Management. take record Transformation With have responsibilities. Head and to him Officer leader on balances. that delighted Andy we enterprise-wide last as I’m at Peetz results. significant widely X the our Anand and attracted program, track talent Operating City couple excellent example named to is in Andy our some current my respected a Selva billion for a been Citi and running retiring, is Anand trillion delivering most decades the new asked $X.X over comes of over addition after will made He visible leadership $XX Wealth table space his the this strong and the Karen has the to in years. client at of We an business we as has announcements. with Chief Sieg running join latest of us in of

risk completely you our we’re the improving walk Transformation, improve infrastructure, our simplifying consent quality. and focused processes Mark on our to data and orders specific examples In plans our are control environment. of and terms how address will we modernizing through of executing

efforts deliver capabilities are Citi’s these and experience core us improving client to the helping them. Importantly,

after focus and the we’ve year delivering. X Investor our made Day, on proud it’s of progress and relentless up, wrap To our I’m

Our strategy is clear.

model and business Our diversified. resilient is

Our balance sheet strong. is

execution. on progress Amidst and making commitments. We’re are we turmoil, our guidance on our considerable good delivering

with to Our continue team determined excellence. delivering is

to And Mark, to would like I with and questions. turn over your take delighted, we as it be will to then always, that,

for to firm-wide good segment. unless otherwise; each expenses, and results to year-over-year I a and with balance more am our morning results, of Jane indicate I first then little time sheet will start the quarter, everyone. and Thanks, financial spend turn on focusing on I the going capital; comparisons the

billion the and Embedded divestiture-related we X, of driven and results $X.X on XX% show income results On these of India nearly for $XX.X full are quarter, we revenues. approximately business. of an Slide of pretax In Consumer largely billion sale firm. of gain approximately an EPS financial impacts of $X.XX the net the million, on in ROTCE $XXX first reported the by

quarter, increased X%, increased and by across excluding Excluding with divestiture-related of the $X.XX, total these as items, over reported XX% an ROTCE basis X%. impacts, a EPS strength Equity was Banking, revenues In Investment down. and Personal and well Services, U.S. closed reduction Markets the offset partially wind Income by in from was revenue and exit Fixed the Wealth Banking as declines as on

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

in $XXX reserves prior net the and approximately exit primarily and wind largely assumptions partially ratio costs growth Cost by and total divestiture-related At funded X%, driven of offset other the card largely revolving credit billion driven normalization inflation, losses continued in $X and macroeconomic deterioration billion, from had to the approximately the nearly expense in risk ACL of of year, investments expenses increased was in X.X%. reductions and a in Excluding to build end credit quarter, related the a and the the car productivity savings approximately downs. loan of control by we by reserve provision balance. transformation, and other with $XX million,

finance show the Slide and of X% X, risk is control first for walk the by programs. and growth, X% drivers. largely key with an quarter investments Transformation On of in we underlying data, the as the the drove increase form driven expense year And of the year bucket quarter. a last Embedded largely the in we people of benefits, first few and the well hired we including in are structural those structural, in key impact items. the hired full compensation the as

the and expense up businesses, that X% in enterprise-wide total which of risk are the make increase. First, about investments and control other

back-office and front the hires. Second, additional impact of

and severance costs. inflation Third,

partially foreign translation have position come. the to for exchange orders by the investments across And in the as increase the of but reduction years they XX%. from technology-related these expense the and address offset as exits. firm, benefit crucial All in productivity expenses significant to modernize We firm, recognize expenses, are the was this well savings from and Citi grew consent the a success driven

and these Slide many like a cases, we’ll some and Now minutes turning our X, few what we’re to In time. examples giving tangible you simplify I’d spend see over processes investments platforms. will investing of the to in benefits

example, For time. XX are experience platform, sanction-screening improving we over have cash eliminating global X platforms to costs. false eliminating reducing we alerts, platform, single retiring And and equities platforms X consolidated to XX client costs consolidating and the modern

losses. modernize and And to security to processes between the by infrastructure of and operating solutions our modernizing use devices, and leading our we time. fewer of industry-leading streamline improving also the AI eliminating of through cybersecurity security our We’re front-office the and and information data the manual and costs our enhancing over connectivity ledger, operating general are the leveraging cloud-based systems and infrastructure

driving of innovative new the our both strategy by products. experience, investing We’re the terms client technology and in interface in

We platform TTS. in for payments launched instant cloud-based clients our e-commerce

finally, way and and data And large greater commercial investing efficiencies And which all RWA decision-making, they digital of We’re time. products to client-targeting also management and self-fund deploying we’re access our to ICG can many the our clients, us has across to same returns mobile Banking, interface advanced we through us efficiency. for allow these allowed our generate future that clients capabilities, services enhance will risk over CitiDirect create corporate open Commercial and investments do. so accounts in too in investments expect to

interest income, and we slightly up points. Average in and million, to net by speak as loans, was net driven On in in I’ll largely deposits where ICG. X cards. income slightly, net in loans also growth interest-earning deposits sequential variant. by first margin the basis $XX Slide Average show were interest balances PBWM up by a increased X, approximately were In decline largely both increased interest by and ICG, driven PBWM growth offset our quarter,

X, corporate consumer and key Slide On show we credit metrics.

reserved well nearly current the $XX reserves. for We’re with environment billion of

are FICO approximately And X.X%. are was Our U.S. to reserves largely exposure, XXX lending in higher. And PBWM, in cards. NCL U.S. and below is XX% remaining are customers line PBWM cards still of lending. or that levels expectations. XX% ratio, that is typical our some mortgages nearly of while pre-COVID of rates, to loan scores reflecting is And and and with X.X%. exposures this in within funded our The In seasonality our of exposure with quarter, XX% normalizing wealth margin lending predominantly

XX% loans points basis ICG loans. subsidiary. about or is our Of investment In of our low portfolio, is to or at international their approximately And grade. total corporate grade clients investment XX% approximately exposure exposure, non-accrual remain exposure, total the XX multinational of

As commercial which XX% real the $XX page, our is exposures investment across see and lending out you we on can ICG estate break totaled PBWM, which billion, of grade.

environment good remains portfolio the review stress continuously exposures while geopolitical asset under very a and we scenarios. levels, our So range and and of reserve uncertain, we about macro quality, feel the and

across trillion key strong On very part additional a deposit we maintain trillion and show page $X.X which Slide in assets. We base the and the few well-diversified account balance balance we high-quality metrics. types, a a added is into which into sheet, capital industries, X, sheet. We’ve additional $X.X how and diversified regions, deployed to is by sheet our balance to metrics transparency funded customers provide liquidity summary manage

We Our business a and sheet unique with balance serve and institutions, and our global reflection strategy is financial well-diversified needs. leverage capabilities our of to investors assets corporates, model. individuals

sensitive. rate billion be deposits majority First, the deposits, XX institutional countries. tend to $XXX are these interest majority our the span of institutional And of and

be into $XXX tend reprice you deposits, clients are approximately this account So the rate on Citi we Wealth XX% U.S. institutional ultra-high right as these are rates billion Private rates. of they These with for the as with services And and and and wealth global Bank, can tied when the regions accordingly, side of been consumer of deposits of across than deposits diversified the reprice but operational years. see more page. stable as provide. the XX worth as to bottom despite go and relationship clients But level retail the deposits as complemented Citigold are sensitivity, at by interest deposits as XX% well that the across well that net up, we well Work products, U.S. client having these of takes to overall Retail Citigold,

Our rate customers products. our interest also results sensitive, tend wealth deposits usually moving to investment this and in to deposits be higher-yielding but

to for a the returns you liquidity side. being asset X deployed linked turning our strong largely is our transact also complement the in loans, relationship Now think liability. use our And which can with resources of while drive asset and strategy. liquidity and We securities clients deepen At capital. investment maintaining to deposits our sensitivity of level, high deployment ways rate this interest our our in and buckets: that and shareholders value lend and the to cash,

Our at of diversified And billion you rate. outflows. our stressed had approximately have X.X corporate appendix. years available consumer in see the LCR investment balance $XXX of across loans is $XXX details which rule of this of billion quarter, cash of securities, contribute portfolio HQLA loans, sheet About loan portfolio roughly of of of end the required as liquidity total can and our is excess in trillion the to the the $X on which cover majority and amount and the is we the well these in of variable duration an resources. Page And XX% XX by we to the the means XXX%, are

interest of evenly $XXX important range and impact sovereign might is held is how sale years, split maturity, for scenarios liquid portfolio liabilities as largely possible and to and our highly so assets other agency liquidity X prudently we and billion the investment Treasury, and stress and bonds our considering that And duration maintained they risks, as a composition of duration we’ve short available just U.S. liquidity capital. interest from quantum where than between could of rate of higher actively liquidity and manage the But by a consists we less rates. and of benefit and

So strategy. interest and summary, aligned rate a model in liabilities our our are of and and business diversified across assets duration reflect sensitivity, liquidity and value execution

and we on basis we XX increase; which finally, returned was largely point We show point RWA than last quarter, a points the approximately increase ended that XX.X% the includes quarter. basis basis XXX a basis. a remaining the investment sequential the by about the billion as a and this X to exits. of did XX, billion X decision $X to Slide will more the basis end drove with walk not And dividends, we from the income driven X reduction $X.X on closing this On drivers common, quarter drove of ratio, a book. our provide quarter, Walking CETX capital we first, impact benefit in from portfolio higher basis XX common internal fourth any of CETX and added we on relates net points; detail through this of to it second, management a back make buybacks, buy third, continue to our form basis stock quarter, points; point which consumer quarter-by-quarter AFS AOCI generated

quarter. offset release savings. more we X% Investment than losses. quarter, other and mostly expenses. ICG of partially as ROTCE expenses, approximately and Fixed as risk of acquire for sequentially, ICG tend a were Cost by lower up sequentially, strategy This And continue credit resulted was Revenues first down loans by and quarter. make an investments an ones. up in down transformation, credit Services million Slide Average Income, quarter. X% our $XX offset the net Banking net Expenses deposits the were ACL seasonality were billion, driven were volume-related show XX% payments by a Clients clients productivity to to translation credit as by by and this new our up offset we X%, average the around and FX revenues, cost clients X%. driven and control And On driven largely end-of-period in deepen were higher Institutional with relationships And higher of and $X.X on deposits deposits for XX, driven Group partially offset income basis, X% by discipline tax our benefit delivered reflecting XX.X% existing average for X%, Equities. returns. the results increased by the first and up

with out Solutions, by On XX, Slide and growth performance by client were business all XX% and XX% Day. interest the in drivers Investor up segments. Trade In at net income XX%, NIR across show growth we revenue laid Treasury revenues and key driven we in

to by volumes X%, see flows underlying global in We client and volumes U.S. Swift clearing with led growth; up up share outpacing gains; TTS in cross-border reflecting indicate continued activity commercial travel. XX%, dollar continue that drivers consistently roughly up healthy strong card XX%, GDP spend

this to about win drove quarter, So while drove clients the relationships existing new continue actions business we XX% the rate environment with clients. of XX% the deepen as growth and remaining

up XX% These In all fact, bank. client’s segments. approximately across client the we are are primary operating wins where include as serving transactions marquee

currency, grew higher non-interest revenues due grew interest rates Services, in interest a valuations. offset partially driven as Securities XX%, of the to impact across revenue decrease In market XX% X% net income by by

new pleased custody and We the execution as about in to of and wins, with Securities Services feel under deals. significant we continue client from onboard good are very pipeline administration we assets the

central As firm. across a higher-returning of businesses are with the and businesses strategy our strong to our the reminder, services are linkages two

strong and commodities. primarily and progress Equities strong to client last to RWA flows our last X% revenue to solid Equities. in continue as to and decline Fixed quarter quarter in down were a reflecting and Markets revenues by stable, as were we in make also franchise derivatives. very in fixed by strength Income relative more year, Income activity revenues on year reduced offset FX a client were Corporate our partially X% than strong revenues equity remain cash offset rates down XX%, was was relative growth target. up a

opening activity. impact driven volatility by excluding down driven revenues, Banking we said Having investment-grade see by Investment do market finally, And uncertainty macro sequentially, to were Banking client largely heightened and losses XX%, revenue continued gains that, growth and hedges, up. the on as loan

So we’re overall, making ICG. environment while about the progress feel the in remains challenging, that market we good

Banking Now revenues partially the for turning lower by product in offset growth income and Wealth. Expenses investment up to were net by driven X% predominantly Management driven Revenues in decline Personal were driven a results business. by Wealth Slide investments of XX, up XX%, in credit our X%, also by non-interest approximately we X%, transformation control revenue, and show initiatives. in continue largely macroeconomic $X.X credit other revolving Cost billion, card and in balance. assumption a million, by of card as net risk to our deterioration normalization portfolios and driven higher see growth losses was we a of by $XXX reserve and in driven build interest

largely Average our by X%, installment deposits cards, work mortgages of And Average to largely lending. loans PBWM and an our credit in on delivered driven X.X%, RoTCE by higher clients putting platform. fixed decreased cash investments driven increased wealth income X% reflecting costs.

revenues we XX%, XX, as cards higher were by and key driven up metrics. drivers Slide business as net Branded show well interest product On PBWM by revenues income.

were account with by up X%; drivers continue XX%; card XX%. services loans, XX%, and up interest to underlying also We revenues strong income. see Retail up new net volumes, driven higher average up acquisitions spend

the associated by For our business. Retail to the transfer branded driven Retail revenue mortgage installment and Wealth And and that we’ve investments that, and partially see combined both contributed Banking up continue cards to rates the offset relationships impact deposits of in primarily XX% in growth personal strong XX% of X%, interest-earning of by decline. card in growth revenues we making, with higher lending, in the were Services. payment to been portfolios, balances

consistent driven in costs, fact, quarter. our investment Wealth headwind to higher the in Bank. continue particularly over retail network to leverage down fee deposit the by first revenues we In and Wealth were with drive referrals Private X%, strategy, XX,XXX the continued

improvement approximately However, a on did notable which XX% were Asia, see sequential we in in basis. revenues up

XX%, our we were XX% in up Work inflows Private new at with across client investment business seeing Wealth Bank new and clients and are net up Advisers Wealth the Client strong X%, and and respectively. acquisitions new

challenging underlying for continues we environment remain our strong seeing Wealth, as execute to drivers strategy. While the we’re against business

XX%, Expenses legacy downs On of franchise. driven had and wind year consumer the of Slide we India, show goodwill in for exit. sale decreased the offset and exits. prior as we partially our gain XX, of the well closed a absence closed by as in consumer on largely XX%, grew impairment business impact results the Consumer Revenues the by a driven wind-downs by

Corporate/Other On higher XX, offset for risk first driven fees. and increased, net quarter. and in investment by Revenues partially transformation increased, we driven results reduction from investments, show Slide by the other for revenue by Expenses a largely control consulting the portfolio.

we with end recent points. and like to a outlook move for uncertainty full key to remains Q&A, revenue remains, Before our Despite I’d few year events economic the that expenses and unchanged.

of to very scenarios. of and and any sheet serve a diversified navigate funding balance strong well set have and with number assets a We us and sources ample capital liquidity. clients positions This

We’re we the targets. not our businesses and of to can on underlying drivers execute of The that strategy. linear, financial continue confident majority in are be achieve but we medium-term will the seeing momentum solid our our path

banking help the recent our the And the environment clients and support navigate finally, I’m incredibly continued proud have overall of employees and our health system. to firm our of how

your that, take And happy would be with questions. Jane and to I

[Operator Instructions] with question first And Schorr Glenn come our will from Evercore.

line Your is open.

Hi, many handily NII you if and first thank your Simple just it, you. annualize many, year I one. your And but moving parts, great. production of was the ahead full revenue guide. appreciate quarter you’re

of I’m schedule. ahead about running the thinking curious guide but on how So maintaining just you’re

of things the we in as out frankly, very number have sector inflation, are of unclear, including, and as quarter. Jane first a and uncertainty still alone Good required there rates Yes. the through question. to the the a seen global appreciate are tame macro are Look, uncertain that in I Thanks, environment mentioned her But quarter. solid that we’ve did morning. we contemplate there Glenn. parts in that direction the the let of prepared remarks, here what’s

the built And into about here. year, of the in guidance so Services, in the new as benefiting rates like. in recession momentum, frankly, swift – but and back and would the our and comfortable both a think the relationships about is more Wealth that clients, as betas to when slow we’ve set the with we from I outlook, about, I revolving think from, about as activity remain Securities comes of have when think hikes that in start that the the and really not had Banking which rate card strength Investment is which also as seeing with payment you TTS, the likelihood and strength And half how and we last deepening evolved existing saw I year, recovery where we

And see plays too. so have how that we out, to

together, So there in when place where puts but with things that it we I where the our we those if that certainly are. business speaks some update but a are that’s set. guidance the me takes we’ve leaves to I’m diversification that And comfortable of will model, you, and changes, put certainly

so Well, appreciate I comments a Maybe of TTS March, could down mistakes, we I thought learn they adapt. and we did. all thing they and couldn’t that. and your the on Securities all same make But quickly, I in follow-up ‘XX, leave in go lot, previous on much, went to then them. couldn’t I lot deposits housing a tried thought if bank from Services. prices down ones The but and my a

at should great, can are – and can you’re a you, history So your franchise. people I’m to behavior meaning that deposit and do deposits I and those Mark are know they any But look are keep relative all, you we curious clients cash any operating stability of they know client because what the show terms Slide in change terms at need and with big right the XX integrated. XX of client now, should fully they if and keep about past concentrations in about? Or they one. thinking that you bank? have given of how changes at tough happen But you that’s

across world over in and strong financing, the working integrated accounts industries, countries, Mark. payroll, feel respect. the how kick clients their and Yes. And it you currencies. capital, diversified supplier operating to enable institutional the Glenn, different well very our the into very the to And to the as I’ll are run about bases etcetera. comfortable say, the I the that extremely it’s operations, pass of clients around off day-to-day majority all deposits it deposit

I because the amount into platforms become stickier And the that frankly, important driving we of combination our their and efficiency, of in to of systems their risk the and clients – is what’s extent their of extract present have the changed cash, digital data, and more performance for and integration technology FX, these back even management the etcetera, is, financial the value well. clients trade, think as world flows their and the incredibly from the

why that as history So is into see diversification both increasing think the Mark, put something the deck you not of and the just would some of the in we’re certainly well, on I extent stickiness you space. including about, that add? the but the this we is complacent versus what pages back, of consistency

lay we’ve clearly obviously, I’d the XX glad those I to to impact That’s out have an of in XX, that that’s additional where broad think environment and we’re Glenn, diversification, to an there thing an increasing. occurring. see only we’re time. rates quantitative started period already. environment But over also would where stability scale that a be, industry exactly of that’s tightening as are in out, add Pages also right, is And which going deposits pointed extended and Jane. The but you I’m

sensitivity That We we sensitivity with price the rate through the but will has plays mistake the the or see how deposits. of on that stickiness balance betas, impact an out of interest year. shouldn’t

influence in with so we And breadth U.S. but the we U.S., those of them as clients betas relationship have will do will bring that particularly services talked we the continue about to that impact the outside we’ve in TTS obviously and increase the so because And more and to increasing, work of portfolio, stable. them, It more our of of the very operating nature we pricing. importantly, see obviously

Thank you.

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

is line open. Your

you couple earnings about being calls ago a many so challenged of I in by the created Hi, Jane, complexity countries.

here, one-third it’s year-over-year. jewel. TTS up your crown said, You was And almost

since also. understand so fee far, is Day. the digits under NII the I some double growth the Can kind so growth, Investor we good you growth? mean of but So, about your fee talk of

you world’s as the growth guess wholesale largest that’s top in this think to I give line So system. payment there? And motion. described double-digit you money global I happening What’s

different consistently And stellar happy from the and products from different percentage the growth a we’re Mike, but the the behind but you, the drivers the bit And growing been benefiting typically and our was almost world growth here. rates that making question. much, and of just different earnings a there and we also around of as here. of the franchise. a looked revenue difference a was these one the fee more offerings the I’m environment, to revenue areas And Thank our have big coming Because, than think when great are earnings in got fee revenues benefiting I our in TTS. in numbers quarter-over-quarter the multiple are at rate from the masked areas. the environment It growing looking have of quality the about growth so TTS strength we’ve fee we’ve obviously, been underlying

And relates is U.S. it your sensitivity to as rate it, generally, then what rates, XX% over like the like of Okay. outside is

I’m yourself given you bar these And some benefiting shouldn’t set little I for just you the backlog you have sandbagging you high than are reasonable jump to if hikes? enough get mean, wondering over. we And in this And originally bit? for bar you want more the so guess, thought, pushout. I no, rate to uncertainties year. just And be IB I of a a Mark,

Yes.

is and opportunity of there certainly think move more in rates again, capturing So terms how I that NII.

for rate of pointed you And you was of that outside we the at our exposure U.S., As that interest a last articulate mix the shift. non-U.S. XX-XX parallel out, year end the for mentioned

As see in little a the non-U.S. and I more U.S., March, bit little going the Q. it skew to less sit bit in that a here you’ll and towards is probably

of is With there how the of in still earlier, a uncertainty here I said, in bit terms U.S. that mentioned rates evolve continue to

in our kind see at betas reached of the We betas with will year. terminal last the We of clients how end evolve. U.S.

of see of not pricing balance at terminal outside And terms quite of And through so happens levels XXXX. what the we kind will are the in betas U.S. of

how Mike, will of people that we evolving how and out. pacing That to may But point often again, that light of that the turmoil see frankly, is light of then environment the I’d interest we’ve the in so in And be tightening rate seen is still play that, play curve in NII. forget legacy could, our again, in quantitative that also, And final fact, sector at the we benefit. is where an there play. is make, NII are broader

deal continue will with so a to our be divestitures, etcetera, we And downs, going that’s we headwind our wind have to that as with.

Thank you.

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

Your line is open.

morning. good Hi,

morning. Good

I know what that coming relative Andy wanted to on today? only also the what to bit think during to not Board. I And think Wealth, outlook for much you how to the how about the understand in have try non-U.S. about but with doing prepared the U.S. locations, you’re Thanks. apply a you capital Sieg remarks, business to just you could talked and you understand

Wealth driving in record and He joining Head of Andy around proven new a expertise Betsy, He’s and growth. digital people track tremendous deep full with my so Global expertise, our advantage as certainly the his delighted we is and of leader, great taking leader will experience product U.S. a table. that we’re got obviously be

coverage Wealth. consistent out a fill laid our potential growth full wealth Day. strategy there. the lot day as We’re of we at in And not the Asia see spectrum strategy mandate with in of the that’s the we is in Investment across Its we shifting

point cross-selling new potential by the our the Private see world. businesses will referrals terms business We And the generate is across other country. we and the the as and a scaling Bank of office in tremendous or that of KPIs across of core there up the and We other different investment synergies in really franchise four around and realized the into be clients offering the growth franchise. to to U.S. lot family out be able drivers, in building our we’re out existing in and between

changing Board. with strategy not of be Mark, the So him what on add coming will in? core would else the you

invested investment the onboarding been of we’ve that, add well are, is know, When some as One the we’ve We’ve for been of recovers, you the new in that in kind number new client bringing investing Wealth. plays we have. clients think, of on thing positioned increasing that We’ve client and advisers. look we look, it well. towards you at products been advisers, the I’d as as market I

turns. And so this ourselves I when we positioning feel are like for

appropriate relates we capital-intensive regarding it business. healthy this, returning the we a that much business is not and us. as of the question very cycle, growth look to capital other as recover, and market capital, see would as in businesses. a turns of in And as front to deploy as your a also normal And return with we prospects It’s

think keep both to I so those things in you’ve And of got mind.

you. Thank

next Erika question UBS. from Najarian come Our with will

is open. line Your

I revenues conservative. it’s your essentially that And think are that morning. Hi, good remarkable too two were saying your first questions

follow-up question very first Betsy. is My to that’s us. So a for notable

a clearly, has a Jane, tricky Sieg of larger I much at business a the this Andy of sort Citi think today. Citi And working impressed, your quickly? the through hire. still a he everybody be having that was Clearly, result There that is what consent more still footprint is you’re And certainly as question. running given transformation. some was order. could in perhaps that the player, your perhaps there, could global could enhance strength liquidity saw opportunities Management crisis of Wealth participate out a we that But potentially inorganic

because going family generating growth for And much I commercial Private potential office. so be potential. owners see and banking Bank focusing, wealth with us think to in champions new our the relationship by is the and enterprises capture to would positioned I the actually we’re extremely are the of where There country, look of the creation, really Erika, after lot well organic inorganic we’re it. a those that’s enterprises plenty an industry at help don’t really supplemented I see play We on of country that. that who and

opportunities institutional products proprietary pushing interesting be proprietary those our like the we’re because were investment and architecture. and to our desirable key business provide benefit side don’t to for propositions, a value own a partner able And partners on the open products the many around also of force very we our very of sales therefore, world. the We to have clients

plays, areas can that areas And interesting like of are digital certainly partnerships, in different finally, we interest. see that,

sense, the actually never But where it. longer almost of we’re I’ll consent no be not very something run. very say the will given to I looking right it’s we now something independent think that orders. at never makes attractive up, in So in sure And comes interested I’m if focused. consent

from getting what organic we’re now right then is we right, this I doing and will see – where there. at play looking think

I XX,XXX pretty referrals telling our from think had that we it’s retail bank.

Yes.

wealth space, To to business. wealth or right the our

to And integrated about. so and a lot the been model speaks of really embedded that we’ve talking it opportunity

dominated particular by also And a bit that the in just aren’t I’d one think we things by we a doing to I of brokerage I is the of think from point is do being other Wealth. constrained benefit way model

sure modern well the that is really I be because positioned working we looking do part mandate are ones Management at is So on and will the Andy for that of more we’ve that way of of and way, the what future. making think the really Wealth been date to that

Thank you.

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

open. is line Your

a a on fact the more question that franchise the you’re a sitting future negative be of growth just retained morning. now above earnings Mexico cushion Hey, sale offset. target. but an Obviously, potential pretty would Maybe I at impact, comfortable the capital. good your appreciate than should expected be

timing is? it of stock we you thinking do about – with how how the as your cheap as buybacks about think So restarting are

transaction, of from it net and which Yes. generation, year earnings we income certainly significant was grew temporary portion have about And buffer management we’ve be of point view to of were couple and our quarter, the the required in will, internal capital as what’s Thanks, then of points a the that that, we or are past, really portion sale factors and But at the if from a we drag, above out, basis a to Jim. at important. pretty way that Look, signing, XXX so. it out view, sizably XX.X% includes about good as a you reg is said XXX of would certainly is CETX is we there there and difference Mexico a are if ago, think well a basis – that this there of take up to other XX.X%, a up closing, a And point it well. point signing morning. significantly Good as you from between CETX ratio place. Look, some points.

evolves. requirements there and current the So about currently and mean about that might that and and; that’s end DFAST that is has kind to game that that – broader capital and out the III out think global in of environment CCAR submitted how playing for could about in and what the of macro come stress see needing the Basel that; capital buffers we economy under we’re are review been think also broader think where just

our be about will when so like yours trading, responsible continue those is given be have saying we a shares. to by buying we in I’d we’re end think of take kind I where about it all to is of factors, place where and all equal, that. we’d is, quarter-by-quarter. things back But And bias where But to we’re being which that the timing

factors. the I think soon fairly we of a around will clarity have more number

better able clarity be will on timing we So before to long. you too give

follow-up, Yes, Where as fair. reserves. are macro now assumptions maybe the macro a embedded book? in in you mentioned the And just assumptions all reserve on you increased then

the couple the that we – a different CECL run of of calculate we we reserve reserves. again So scenarios in have when remember, terms

three X.X%-or-so rate a Our those reserves on scenarios. quarters. reflects on basis based unemployment are macroeconomic over current weighted a It eight

So that’s versus relatively quarter. flat last

weighted probability skew of the point than and for the other that in in a this last more light particular as terms in environment weighting in downside activity did the your about the – quarters. of basis worth increase again, some combination calculation towards at over as the we The question, macro the the is mentioning quarter, that portfolio, quarter, bit X.X reserves for we little of including eight increase the sorry, well unemployment in to weighted well be as for X.X contributed revolver in to the an answer normalization saw. But

you. Thank

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

line Your open. is

good morning. Hi,

Good morning.

Good morning.

to on with IB just question wanted start off a I outlook. trading the

but I of the just side, that target? some a side, ECM, as wanted was to recent on the trading investment you if of evidence any shocks, you can And backdrop, product confident different evidence still of just any offer of the have been sustain across given color And could is challenging mid-single-digit On seen just volatility? across hoping banking green Mark, DCM. shoots. the growth some macro some you see noted, I there that you M&A, lines are you that It’s

relatively evolve, largely down really, that that I rate played plays across saw aggregate deliver jump favor that. kind in to take that year-over-year, we continues volatility, markets. Why we were through a we end and the and will to And better about performance. the saw markets advantage quarter, aided in of performance to serve subject still in. our start had talked to Look, that Jane, based strength on in and of businesses. then back how we in clients, well don’t in flat talked today see earlier many us able we But Fixed macro I you And instances, Income in the I what business, feel which the on think rates. in – when and by we volatility up the markets of X% as and was four know, quarter is then, full we What to a the of quarter. the be conference to free for at to in getting that the And about year positioned driven the

a is you evolves, how we’ve confident that unknown but did guidance feel Jane, bit to there on that that. the want... as so given far thus I of And an in

banking Yes. I’d jump in before well. you as turn to

support in very activity. seeing we’ve highly the our obviously This in we’re this. is more particularly clients in pretty commodity And our markets steady volatile And is flow is, volatile to the one of than from to flows think volatility some differences for of been because able that the provides markets hedging. are our our rates, corporate. others a we I with bank diversified but franchise like compared risk competitors, attractive, it that good makes perspective, FX, our go-to much

attractive We’re not flow heart taking business the This of positions. network. really at client global the is right

the that piece payments. is that the are too, important These the I partnership just other The elements here, mix in with TTS cornerstone cross-border is FX the think of franchise.

client of some heavy, So this as there but client, you. that Citi back that’s Mark, doesn’t think is to pieces franchise. volatility what’s on being here the the differentiating of usually so one

Thanks.

exactly there debt I last Investment in Look, of Banking, base was some a in the – I – behind of year. in think prior of XX% right the strength that’s a bit an the which rates. wallets obviously, meaningfully we there. performance for saw versus direction in for quarter, think names, area We were on quarter, markets particularly performance clarity us the of as activity good down client capital saw is up terms this momentum bit corporate sure. down And investment-grade more

evolve And continues so and play we see to out. how that will

geopolitical at to the have manage like. would the The good what try environment as back add that navigate on some But very point, are environment how that uncertainty. of the other trajectory with that depend the going that and clients into we and it’s thing And continue to is anticipate to need to balance the and get they we looks dialogue all markets. largely macro year to clients I and going clear is manage through

continues healthy engaged, pipeline, very subject to environment to So, evolve. how but the

just we sense within higher want did fans strategy, of going thing wealth of trends. thinking partner year? congrats to and the one should hire. function you on better the fees we fee And as of broader for are we so continues be trajectory being follow-up, this but about improvement of is PBWM how to remainder And credit is the the I great. much just over the a That’s my in Andy ask sequential about big on how get to of am PWM not fees income I here, a normalize. payments saw that The

we combination a of in the how the cards will mind pressure terms of to valuations I kind wealth the it that things in in space, on the is terms we behalf in business how I and and that market on still And a it a PBWM subject of there we of is manage evolves, good seen investment have to amount of think And some And is to of fees. what environment drives revenues are the activity see couple to as wealth fee as both of think we continue pressure of activity. well keep see because have clients move is more part PBWM in the and of there. investment on that momentum business. that the fees, assets

drag kind of when the be to – They banking slowing while in again, under the and activity months expect think been evolves the in revolving has at have So, purchase part will across do quarter. concentrated cards, latter continue, the up in fees that’s and entertainment. sales, look they of how it’s quite of levels I big year-over-year, been business. travel are we and to the and but fees, subject seen growth volume been have in that I think upside a we our cards We and

will will some factor to have keep see that mind. So, how of we a volume that be and evolves, to in activity

you. Thank

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

is line open. Your

Hey. Good afternoon.

the you you quick Just dynamics, a thinking does hit to the for to relatively the accounting of pursuing might to mentioned with something given One, – sale, the are get the you process. or an that Jane, questions. go and be Does from that And this think about should we Mark, continues regards the how through the the do the outlook impacting soon transaction? One, you you early dual-track go to that IPO Mexican – it terms I couple time decide that are just in economy, Banamex taking that influencing if route, robust. is take IPO? maybe hear if still the that on change might banks value of

we are in now dialogue So, very a in right active Mexico.

to going So, comment in I neither, are or lot of detail there. a Mark

you to an sale we As continuing dual the pursue say, path, both and are a IPO.

will either our in shareholders. exit have an So, we path And way. strategy will we interest that take the best the of is

institutional progress the making. Mexico with out separate going the I body have in of to on got we business. So, am enormous are they pleased work

think Mexico are the of our I the ICG beneficiary to dynamics – at obviously the given Mexican the supply we beneficial of proximity really the seeing around of U.S. chain a business performance look world. very are strong when is the happening location its we And our in a happening is as where well. performance such that is franchise, lot

lot a of are part the benefits of the that institutional and seeing in are business. dynamic core here the we So, a big coming we Citi franchise keeping within as

is is the in of impact Mexican principle current our our of best really so decision-making. doesn’t have take on we much that current will path the an interest The So, economy shareholders. the

just to to Yes. And numbers some that. put

point For growth, exactly right. both and is of It choose an deposit the was say. X%, IPO, will cards for part shareholders. take would your XX% longer. a in sale latter Everything positioning I path IPO well, performing revenue Mexico And from terms we likely view, would we so IPO, a an the full etcetera. so doing we for In up different year-over-year, are Jane best CTA would that us the of we up private impact growth, wouldn’t the and/or that IPO, that of that’s what from have set And quarter, that quarter-over-quarter an terms accounting take is in is question, for not of different would the at of through signing accounting I P&L. say CTA an financials, closing. be audited as that recognize is longer implications would would want we would

not would we at that an time. so of IPO-ed that how issue. a be much would The be And impact matter

would if clients just our is hopefully, the with our scenarios one But some down of we But lot that a pieces figure see gives love of you there. need path. to sense up moving there. out We Jane and that So, ended point best which outcome the has that already, final outcome choose end we employees. would I shareholders, that made that for the be will

an be And that will exit.

Thank you.

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

is line Your open.

Hello.

on latter about Any some growth Thank that cost means. expense part the the I guess talked have think that’s if guys You curve case. clarity kind I dropped? And and clarification slowing I be just bending absolutely in still helpful. of cost, the XXXX. Is of the bending of in general medium-term on wanted And you. see maybe to what on that curve kind would

directly, answer To is still it Matt. very question Thanks your yes, the case.

expenses. absolute are in end It going reduction I as of the the mean to XXXX. bend curve, does an in dollar – mentioned towards have We

far That’s Okay. the And color Thank then too. obviously, mean that, it’s of, past, there, additional the I in beyond, more any costs have think but hopefully, away, just I like in start you you. of kind if helpful. that’s a insinuated drop material

the transformation-wise, business-led look, base been We to key area of in competitive of factors as been that in us, about in that we medium-term looking from point bending again, that about, the expense places our very been right the divestitures ensure our They we And for we franchises. requires franchise, a and There that that are have spending ‘XX, means as growing start going RoTCE Day expense One, deliberately. way that we that have that what to have right. at XX%, But we have and to factored the Look, going contribute advantages view. are the and of to stated, because we are positioned are And been where are are of that is well growth we time. investing for the that in we talking money at that medium-term. curve right. end we yield the Yes. recognize the expenses targets efficiency right operating support growing. in XX% I have both an that as have set XX% was focus managing are a we to that we and that to over Investor in are couple the very all that is many of have expect and And actively place we that lowering returns that have that the that into base. we to that benefits a the

efforts have The organizational transformation from XX the simplification just are that second investments is are is and enabled have exiting by that the further referenced. the idea the that we countries. other underway both third that consumer and management benefits I And we

we lower we broader factors, returns. ensure that that three if will, to regards important we And very able the deliver become commitments get to and are making that are with cost you structure to on so those that and to

you. Thank

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

line Your open. is

Thank you. Hey Jane. Hey Mark.

morning. Good

some And regional a directed it’s it may a United Jane, more into might on already, more and do orientated the A and investment obviously, seen you have the with over couple on terms in capital, of starting guys you part changes do maybe States. this liquidity? as went the give the are see well? first, as Republic? or Switzerland, yours you you us regional the like system because the then large And the what in we What coming color be that guys it. U.S. your what changes in see global company with made in you you March was question, what banks of here – bank Mark, in thinking both whether behind of coming, Jane, of more with questions. you or deposit can not can regulatory, the answer month be SIFI In banking the view and of it in the peers of disruptions First at

management causes root Thank banks. that is And asset from is and you happened industry. And broader keep driven of and there protections believe here. were highlight what framework, the capital issues the would requirements night and stability. if throughout Yes, would plenty of the the large at hope in increase, continues quantity increases asset at increase requirements to might impacts to awake address capital regulatory still be of exacerbate what and through see the regulators, the banks. pervasive the me I in more getting system, rate rapid And large will to that of of and will Gerard. related capital tightening the to most by I small we activity importance events what fear certainly management. idiosyncratic not there We a approach of it sure. regulatory that, that changes they benefit for frameworks the credit for any and targeted for the lack the And of banks on. Well, and thoughtful sharp it, that macro be capital the into if happened that amongst participants. question, a any is a situation, [ph] banking combination the a actually go We liability don’t that namely amongst and of quality detriment banking same these from prudent handful strength But others liability industry. as shadow activity It proper the some does banking and the say

where approach targeted to and were. that issues thoughtful be we the So, hope actually this will

help that absolutely issues like were some for recognizing step – we thought and the U.S. to in positions. our and Republic responsibility time helping one into come overall As sure of speaks of at billion and effective sheet national swift over And and an that tackle opening that the this. and both In able that situations I uncertainty, of think very the international the level, in we making the we And market of important role local our the said and were the U.S. a confidence thought volumes banks minute. it play And balance as just capital very my front, delighted And acted large comments, First day. a were $XX together in they the large of to and also inject buy demonstrate for banking that the regulators, I was banks the in were face tremendous in little important here strength. institutions we source that in XX back stabilize were also deposits let’s system. largest to

gives of that you bit a hope a I flavor. So,

know was very follow-up good. us of it a then prime – prime, think but Thank greater are if score which hearing your were don’t And agree would card, is the there is this we gave is No, in inflation. portfolio FICO I insightful. XXX. XX% as score Slide with than question, X, that you Very the statement, some I you. you noticed I FICO

as expect high a scores numbers as that result in can consumers would guys do behave with agree point the pandemic, you score be lot customer saw go seen side. XX XXX do, of the some have the And As And then you a FICO you if score I high up. FICO points – the of to XXX like that? you a may But customer? at

I but think let answer let that Mark the short answer one. me is no,

Yes.

seeing think in way the Gerard, of what I are performance kind portfolio. of here, important the is of the really we what’s

inflation. seeing that again, confident XXX. what think to and of are We FICO how XX% customers it So, than we start sentiment importantly, greater we in slow. our means I have have very heard assessed prime and customers what to seeing rates feel store regarding we have And I our are is payment

interest-earning increase. to seeing average are start balances We

NCL is below performance. score been driven increase, rates where would the across that are to have by a particularly in are the with portfolio, to drag occur. well expect in what And We customers normal they the we we are line what we seeing FICO you forecasting for right. seeing still see which are but rates And cycle, see would NCL lower start that

to those that to no is will reacts the environment customers, bit would my it enough how are It the of that that in seeing there surprises are we of how levels the curve that here back evolving. likely and is to So, beginning towards we through it levels play expect portfolio get out. a understand year. before But point that forecast normal our tapering. terms will next those We normal

in make $XX been to stress that part performing continue you not forecast anything. sure of a it that’s carry know, And and line far, those that as billion. so missing we importantly, we And with to we And as estimates. importantly, sizable are reserve,

data goes also, our imagine, not used. a upon rely FICO customers it’s wealth that also just that There well, would we you the amount we that of something just is and a portfolio. data add It’s credit as gives is our and prior I that that. tremendous beyond of well for can a more of And that’s confidence. lot draw on history that then scores assessing

Thank you.

come Vivek Our Juneja from next question will JPMorgan. with

open. Your line is

Thanks Mark questions you. for and Thank taking my Jane.

Good morning.

assumption? you, your in go your to What rates, assumptions deposit in you U.S. seen on the want you I to Mark, unpeel in And and with the for revenue keeping I what have I inflows revenue revenue. little with betas, What’s internationally? hear recently going crisis? are particularly your U.S. unchanged. is the the following guidance bit. want revenue is just a that to

Yes.

a bit the after year, XXX the a So, after the rates trend One, of guess assumed, things. would probably year, or kind out this that quarter, and assumed of the XXX we then have so. bit to like end the of have we balance – something in second kind rates down rates or couple would down terms of of quarter I towards a the in that flatten of so,

unlikely then meaningful a have have have XXX. in to increase little But more if and it’s may That there, flat and down we one impact or change. could changes candidly, XXXX. likely a That’s an then of rate So, XXXX. impact bit to here in it about to

So, debate can that have that’s what outlook. in far but we kind we curve, our of thus

around The U.S. would I make second – that’s is point rates. and

the talking to outside but But where specifics don’t U.S. lower again, – have for significant in assumptions to in U.S. curves we our of some of are general, front continue the globe, We betas on are are in we not assuming the depending rate built in The about. terms run are magnitude, have there increases multinational beta that but of I assumptions me assuming continued for around there, kind they clients. of we than of increase rate the

the move we towards client are clients banking PBWM products. that products higher-yielding deposit segment expect PBWM space We either will in or retail or to see likely that with investment

things here. we Absolutely, And of but that’s behind about assumed how could have that or so kind we And we those evolve? have what what’s into outlook. think change the factored

not tempering with up? the those just betas, you in so seen with crisis clarification, or inflows a other And obviously, that is recently have going how the in – you systems change little far? are much the deposits any down as the any a U.S., bit, Are slowing

have I things of couple a So, mentioned.

in with we did one, of turmoil. see quarter inflows the associated the some sector So,

too in kind call looked you certainly soon that sticky. period Xth, If likely of that bit an do little of or inflows through a March. we be of Xth, to of probably our we a middle levels of tell March it, client so betas evolve, see market have from, in – CCB, call good to deposits close deposit at And portion a billion portion we that March of commercial uptick, with but base. of $XX the end it, those did time how think good our kind It’s will under

large part middle of what’s that market think clients strategy growing clients. important our multinational here is, here in our deposits our operating I and is fact with

how to to evolve, what to to on environment is wait continues that. so actually continue It’s bit that have and soon And to how will see. of right. betas the unclear focused means relates tell little too it we kind and And rate What’s going a we are to for as that. be evolve

you. Thank

with Usdin Ken from come will Jefferies. question next Our

Your line open. is

Mark. Hey Thanks.

the credit. on follow-up a Just

bit “normalized” your end – you your CECL And about towards had you had mentioned, of you of think talked you around losses, that moved getting card the previously I a So, little adjustment the obviously, your said year. weightings. part in towards the by

changes X – for to some that card normalization us happen that you saw still to of just year-end this quarter, we in year? and by are the that seeing businesses just X.X So, around getting can you this – ahead respective you definitely the online X, can given X.X are and

early next year, Year-end, yes. Yes.

track still for trend levels. would a timeline, up are quarter, of they expect pick on the We your that down. start before reaching normalized answer bit early I to still Again, they those that that’s yes, XXXX, is kind that. after But fourth tapering Ken, question, little on

the terms one Okay. X%, are Cool. more the on then mentioned you When taxes. an across are fell and lot deposits page, taxes follow-up, look end-of-period just end-of-period basis. a And been down talked outflows seasonality already at there get the there ins Are lot like business. a everything of of the outs impacted deposits to of some might have other that where just I – the between? of trying a by through of there that inflows, sense and was And and have just tax pieces in what you in else areas

a it’s question. good Yes,

the they deposits So, that Page when our look basis, in you – average an a on see on again, XX little you tick-up at bit.

to flows. at have the sizable said, in deposits. And essentially, in – basis, did If we I particularly playing clients where a the in down from through then they prepared if at this point that payments an my well again, that as excuse would and kind are remarks, our see increase of in about tax intra-quarter, we our March, time we some remember we clients, saw see payments fourth nice as in operating operational payments TTS as quarter, me, deposits. you And have that with you seasonality look part to expect of both TTS end-of-period is And large clients, the I wealth we with also run-up the normal earlier, a for prepared it that referenced With in most extent, end-of-period on mentioned X%. year.

in surprises what no are There happened.

Yes.

Thank you.

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

open. is line Your

Hi.

last on Just one answer. clarification that

had you month in inter-quarter the March? U.S.? Did deposits gain flow. And in that you the was of more said You

flows. and come I of did these as And largely following parts in I March activity did. Yes. came through we March, referenced. we the in see terms good that kind month Yes, overshadowed the was end April. normal talking and kind of March. still They early about, we the Mike, of That’s in in of – even were did we of by payments through and They those the of what U.S. March

And PBWM. institutional that was as in we both in as well business inflows that saw the the the

this I And if have am if define correct way, deposits you me, you multinationals. oversimplifying look, but X,XXX mean, I

the think for lot know bit been over way, just and dice markets but have I the big with reason you TTS higher I target deposits a sense. where some multinationals? showed deposits, years. really XX That’s even doesn’t suggesting. or Because general a a of those slice even between don’t newspapers valid. a capital percent maybe the that front are of That’s a are of for you said companies though the You you that’s in services. am stickiest. deposits a as there deposits, What because for asking X,XXX much a deposits I little different of payments, Those stickiness. And And percentage as And am I is of asking clients selling have as is this think XX% and of of matter I uninsured lot uninsured disconnect banking. have in pages measure your you

that. you could address if So,

can we that turn bottom, the this large at Yes. the businesses is client broken deposits. Thanks the see or you Mike. to TTS Look, down tell where the here. stability have well so stickiness, deposits with XX these because And I the each And over earnings those have. these shouldn’t Page deposits as have clients see to growth for And of you X,XXX your as us, us. to the And presentation, that will the we betas you And deposits the And as to with largely rate see sticky you in in sensitivity tend right. operational can mistake right. with deposits point, quite reside. these And or time. be deposits we multinational steady are

the in deposit we the with in sense pricing often clients we of opportunity gives that’s up, go those. accordingly outside that But to relationships our deposits, broader And with price-sensitive and have the have remember, U.S. rates adjust the as these us relationships. are are both they re-price to Now, what the than just U.S.

which time is to grown the us speaks speaks page and can other at the also but to have us. of time the many your to they that, that with it And the of you of own clients look the portfolio, page been so again length prior diversification have in these with

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Landis there are no to Jen this for closing over And the back time. turn at further you. call I questions will Thank remarks.

today. for everyone joining Thank us you

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

Thank you, quarter earnings This Citi first gentlemen. XXXX and concludes the review call. ladies

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