Citigroup (C) This autumn 2023 Income Name Transcript

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Citigroup (C 1.04%)
This autumn 2023 Income Name
Jan 12, 2024, 12:00 p.m. ET

Contents:

  • Ready Remarks
  • Questions and Solutions
  • Name Members

Ready Remarks:

Operator

Hi and welcome to Citi’s fourth-quarter 2023 income name. Lately’s name shall be hosted by way of Jen Landis, head of Citi’s investor family members. It’s possible you’ll start.

Jen LandisHead of Investor Members of the family

Thanks, operator. Just right afternoon, and thanks considering becoming a member of our fourth-quarter 2023 income name. I’m joined these days by way of our leader govt officer, Jane Fraser, and her leader monetary officer, Mark Mason. I might love to remind you that these days’s presentation, which is to be had for obtain on our website online, citigroup.com, would possibly include forward-looking statements, which can be in response to control’s present expectancies and are topic to uncertainty and adjustments in cases.

Exact effects would possibly fluctuate materially from those statements because of numerous elements, together with the ones described in our income fabrics in addition to in our SEC filings. And with that, I will flip it over to Jane.

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Jane FraserLeader Govt Officer

Thanks, Jen, and a more than pleased New 12 months to everybody and I’m hoping you all had a excellent destroy. At Citi, we are again at it. And given the notable pieces and our new monetary reporting construction, we have were given so much to hide these days, so I will get proper to it. 2023 used to be a foundational yr during which we made really extensive development simplifying Citi and executing the tactic we laid out at Investor Day.

With that mentioned, the fourth quarter used to be obviously very disappointing. Lately, I will be able to supply a high-level view on our development in 2023, speak about our This autumn effects, and end with our priorities for ’24. We all know that 2024 is important as we get ready to go into the following section of our adventure, and we’re totally targeting turning in our medium-term objectives and our transformation. So, turning to what we achieved with regards to executing our technique.

As you’ll see on Slide 5, in 2023, we noticed a document yr for services and products the place we maintained our No. 1 rating amongst huge establishments in TTS, with Jstomer wins up 27% and a sustained win-loss price above 80%. We have now now received over 100 foundation issues in proportion in safety services and products since 2021. In wealth, we added an estimated 21 billion in web new belongings all over the yr.

In USPB, we loved our 6th consecutive quarter of development, and we started to look the early end result of our investments in key skill in banking. In September, we started probably the most consequential collection of adjustments to the group and the working of our company for the reason that aftermath of the monetary disaster. We restructured round 5 core, interconnected companies to align our group to our enterprise technique and to supply larger transparency into their efficiency. You’ll be able to now see in our financials the full-year returns and P&L by way of enterprise.

Whilst they’re all impacted by way of investments and transformation expense, it’s transparent the place we now have paintings to do. The simplification of our group construction will conclude on the finish of the primary quarter and can lead to over $1 billion of run-rate saves from the web removing of roughly 5,000 roles, principally managers. As Mark will element, this may give a contribution to the aid of our bills in ’24. Over the medium time period, between simplification, advantages of the transformation, stranded prices, and different productiveness efforts, we predict to get rid of 20,000 positions ex Mexico, leading to over $2 billion in run price saves.

Simplification may be enabling Citi to be extra client-focused and not more bureaucratic. Understanding the synergies between our 5 companies is without doubt one of the key drivers to reaching our medium-term profit goal. With this new construction, I am preserving my enterprise leaders in charge of improving connectivity throughout purchasers and merchandise. As well as, having a primary Jstomer officer acts to verify we are disciplined in bringing the complete energy of our franchise to our purchasers.

We have now now finished the divestitures of 9 of our 14 global shopper franchises and feature wound down just about 70% of our general retail loans and deposits in Russia, Korea, and China. We have now restarted the gross sales procedure in Poland and are effectively down the execution trail for the Mexico IPO subsequent yr. We are exiting marginal companies comparable to munis and a subset of distressed debt buying and selling to concentrate on our core strengths and allocate our capital with rigor. Now, doubtless, most of these adjustments are tricky, however they’re vital.

On the identical time, we proceed to spend money on our transformation, possibility and regulate atmosphere, and knowledge structure, and we have been happy to have closed the FX consent order with the Federal Reserve. We’re dedicated to gratifying the expectancies of our regulators given the original position we play within the international monetary machine. The modernization of our tech infrastructure is continuing at tempo, permitting us to ship new functions to our purchasers. Throughout the yr, we consolidated buying and selling and reporting platforms and retired 6% of our legacy packages for the second one yr in a row.

Those improvements dovetail with vital investments in our companies, comparable to hiring business bankers to seize proportion, bettering the virtual fee functions we provide right through our international community, and automating processes for our safety services and products purchasers. It used to be additionally a yr the place we upgraded skill with key inner promotions supplemented by way of selective exterior hires, together with Andy Sieg. The simplified reporting construction has been embraced by way of colleagues who’re feeling empowered by way of the brand new construction to serve purchasers and force price for shareholders. Whilst Mark will undergo the main points, I might love to point set on our disappointing fourth quarter prior to recapping the full-year effects.

Previous this week, we disclosed further exterior headwinds, a few of which materialized in the second one part of December, together with a $1.3 billion reserve construct associated with switch possibility stemming from exposures to Argentina and Russia. We additionally noticed a just about $900 million unfavorable profit have an effect on because of the larger-than-expected devaluation of the Argentine forex. These things, along side the $1.7 billion FDIC evaluate, drove this quarter to a unfavorable EPS of $1.16. And whilst these things are obviously very painful, they’re moderately idiosyncratic in nature and won’t have an effect on the route we now have set.

In the case of the efficiency of our 5 companies, whilst services and products used to be probably the most impacted by way of the Argentine devaluation, the underlying development stays very robust, pushed by way of proportion positive aspects and Jstomer wins. Total, services and products revenues [Audio Gap] whilst cross-border transactions have been up 15% and AUC/AUA in safety services and products have been up by way of just about $3 trillion for the yr. In markets, our constant revenue effects have been disappointing as we noticed an important slowdown in December, in particular in charges and FX. Markets used to be additionally impacted by way of the Argentine devaluation.

This franchise is easily located with our company purchasers, and we proceed to take movements to reinforce returns, whether or not by way of redeploying capital to high-returning merchandise or exiting merchandise which are not a strategic are compatible. We had a good quarter in equities, in particular in derivatives, and we noticed development in top balances, a space we now have been specializing in. Whilst process picked up within the fourth quarter with revenues up 22%, total banking profit endured to be impacted by way of a susceptible pockets globally. Funding banking used to be up somewhat for the yr, and we completed 2023 as a fifth-leading franchise. We for sure aspire to be higher.

We are seeing advanced self belief amongst CEOs and we love our pipeline, however after all, the timing for a strong restoration is unsure. The proportion positive aspects we have made in spaces comparable to healthcare put us in a excellent place when this enterprise turns extra decisively. Whilst funding process in Asia rebounded with quarterly revenues up 21% and Wealth at Paintings up 18% for the yr, total wealth revenues have been down in 2023, and we absolutely acknowledge that this enterprise is not the place it must be. Andy is off to a quick get started.

Along with resetting the expense base and making sure the best usage of our steadiness sheet, he is tightening our center of attention to construct fee-based profit streams and funding AUM. With 100 trillion in new wealth to be created by way of 2030, principally in North The us and Asia, and with our purchasers preserving $5.4 trillion clear of us, we now have the most important talent right here to force development and returns to the place they must be. USPB used to be a brilliant spot, with each and every product up double digits within the quarter in comparison to closing yr, together with retail banking, which benefited from a rebound in loan origination. New and refreshed merchandise have greater buyer engagement as we see some great benefits of the investments we have made. And in playing cards, IB and ANR endured their development, reflecting a extra balanced lend as opposed to spend combine and falling fee charges.

As anticipated, loss charges are actually again to pre-pandemic ranges, pushed by way of shoppers within the decrease FICO bands. In the case of the complete yr in 2023, we grew revenues ex divestitures by way of 4%, even supposing the Argentine devaluation necessarily avoided us from attaining the $78 billion profit mark. We met our full-year expense steerage, and we greater our CET1 ratio to 13.3% all over the yr. We grew our tangible e-book price in keeping with proportion by way of 6% to $86.19, and we returned 6 billion in capital to our shareholders within the type of commonplace dividends and proportion buybacks. We stay dedicated to proceeding to go back capital to buyers thru either one of those channels.

As I mirror at the yr, I additionally wish to notice that we have been a supply of power for the machine and for purchasers all over a risky length for the banking sector and geopolitically. And I am very happy with how our other folks world wide carried out all over difficult instances. 2024 seems to be very similar to 2023 with regards to the macro atmosphere, with moderating charges and inflation. We predict to look development slowing globally, with the U.S. effectively located to resist a run-of-the-mill recession must one materialize.

With a powerful steadiness sheet, considerable liquidity, and diligent possibility control, we’re effectively located to fortify our purchasers thru no matter atmosphere involves cross. Additionally, we expect environments like those play to our strengths. Given how some distance we’re down the trail of our simplification and divestitures, 2024 shall be a turning level as we will totally center of attention at the efficiency of our 5 companies and our transformation. I acknowledge the significance of this yr, and I’m extremely assured that we will be able to see some great benefits of the movements we have taken during the momentum of our companies. Sponsored by way of investments in key merchandise, we consider we will be able to keep growing revenues ex divestitures by way of 4% to five% over the medium time period. Total, we stay assured in our talent to evolve to the evolving capital and macro environments to achieve our medium-term go back objectives and go back capital to our shareholders whilst proceeding the investments wanted in our transformation. With that, I might like to show it over to Mark, after which we will be able to be overjoyed, as all the time, to take your questions.

Mark MasonLeader Monetary Officer

Thank you, Jane, and excellent morning, everybody. We have now so much to hide on these days’s name. I am going initially the fourth-quarter and full-year firmwide monetary effects, specializing in year-over-year comparisons, except I point out differently. I will additionally center of attention on our steerage for 2024 and finish with the trail to our medium-term go back goal.

The presentation of our effects displays the adjustments we have made at the side of our organizational simplification, together with reporting legacy franchises and company different in all different. Then again, prior to I am going into the effects, let me stroll you thru probably the most notable pieces that impacted the quarter that have been incorporated within the 8-Ok we not too long ago filed. On the best proper of Slide 7, we display these things on a pre-tax foundation: The FDIC particular evaluate of roughly $1.7 billion associated with regional financial institution screw ups in March, this impacted bills in all different; a restructuring rate of roughly $780 million associated with movements related to our organizational simplification, which is able to force headcount discounts and long term financial savings over the medium time period impacted bills in all different; the have an effect on of the forex devaluation in Argentina of roughly $880 million, this used to be recorded in non-interest profit throughout services and products, markets, and banking, and you’ll see the have an effect on by way of enterprise within the appendix of the presentation. Whilst we did have an antagonistic have an effect on from the Argentina devaluation this quarter, we additionally benefited from excessive rates of interest, incomes roughly $250 million of NII on the web funding within the quarter given the hyperinflationary atmosphere and a reserve construct of $1.3 billion associated with will increase in switch dangers related to exposures to Russia and Argentina, as described within the 8-Ok. This have an effect on is most commonly incorporated in different provisions and value of credit score and spans a couple of companies because of their globality.

The combo of this stuff negatively impacted diluted EPS by way of roughly $2 and RoTCE by way of roughly 920 foundation issues. Now, turning to the left facet of the slide, the place we display our monetary effects for the complete curve. Within the fourth quarter, we reported a web lack of $1.8 billion and a web loss in keeping with proportion of $1.16 on $17.4 billion of profit. Aside from the notable pieces, diluted EPS would had been $0.84, with an RoTCE of four.1% for the quarter. Within the quarter, general revenues reduced by way of 3% on a reported base. Aside from divestiture-related affects and the have an effect on of the Argentina devaluation, revenues greater 2%, pushed by way of power throughout services and products, USPB, and funding banking, in part offset by way of decrease revenues in markets and wealth and the profit aid from the closed exits and wind-downs.

Turning to bills, we reported bills of $16 billion, which come with the FDIC particular evaluate and modest divestiture-related prices. Aside from these things, bills greater 10% to $14.2 billion, in large part pushed by way of the restructuring rate I simply discussed. Price of credit score used to be roughly $3.5 billion. Aside from the reserve invoice for switch possibility, price of credit score used to be essentially pushed by way of card web credit score losses, which are actually at pre-COVID ranges, in addition to ACL expenses for brand new card volumes. On the finish of the quarter, we had just about $22 billion in general reserves, with a reserve-to-funded mortgage ratio of roughly 2.7%. And on a full-year foundation, we delivered $9.2 billion of web revenue and an RoTCE of four.9%.

Adjusting for the notable pieces, web revenue used to be roughly $13.1 billion, with an RoTCE of seven.3%. On Slide 8, we display full-year profit traits by way of enterprise from 2021 to 2023. It is very important spotlight that, at the side of the trade to align with our new monetary reporting construction, we transfer nearly all of the financing and securitization enterprise from banking to markets. We additionally carried out a revenue-sharing association inside banking and between banking services and products and markets, to mirror the good thing about companies get from our relationship-based lending. Those adjustments are actually mirrored in our effects and our historic financials.

Now, searching on the full-year numbers. Services and products had a document yr with revenues of $18.1 billion, up 16%, taking advantage of each charges and enterprise movements, new Jstomer wins, and deepening with present purchasers, in part offset by way of the Argentina devaluation. Markets revenues reduced 6% to $18.9 billion, in large part pushed by way of decrease volatility and an important slowdown in December. The markets enterprise used to be additionally impacted by way of the Argentina devaluation. Banking revenues reduced 15% to $4.6 billion, essentially pushed by way of the mark-to-market on mortgage hedges in addition to a lower in company lending.

Funding banking revenues have been reasonably flat for the yr as we acquire proportion amid a declining pockets. Company lending revenues have been down 4%, with the exception of mark-to-market on mortgage hedges. Wealth revenues reduced 5% to $7.1 billion, essentially because of the deposit combine shift towards higher-yielding merchandise, which drove decrease deposit spreads. USPB revenues greater 14% to $19.2 billion, essentially pushed by way of development in card balances as we proceed to look the good thing about our funding in virtual acquisition and buyer engagement. Overall revenues, with the exception of divestitures, got here in at $77.1 billion, under our steerage of $78 billion to $79 billion for the yr, in large part because of the have an effect on of the Argentina devaluation, softer markets efficiency, in particular in December, and losses on mortgage hedges. Then again, NII ex-markets got here in at $47.6 billion, in keeping with our steerage.

Regardless of the difficult atmosphere and the have an effect on of the Argentina devaluation, we grew firmwide revenues by way of roughly 4% ex divestitures in keeping with our Investor Day goal, demonstrating the good thing about our diverse enterprise type and the investments we have been making. On Slide 9, we display full-year expense traits from 2021 to 2023. Aside from the FDIC particular evaluate and divestiture-related affects, full-year bills have been $54.3 billion for 2023, in keeping with our steerage. As I discussed, this contains kind of $780 million of restructuring prices related to our organizational simplification and extra severance prices of roughly $730 million, which incorporated movements to deal with stranded prices and begin to rightsize the companies. Relative to the prior yr, expense development proceed to be pushed by way of transformation and business-led investments, volume-related bills, and different investments in possibility and controls and era, in part offset by way of productiveness financial savings and a discount in bills in legacy franchises inside all different.

Over the last few years, we have been making an investment throughout those groups, which has now not most effective impacted the efficiency of the company, but in addition the companies. On Slide 10, we display the parts of our transformation and era spend from 2021 to 2023. Over the last 3 years, we now have invested considerably in our infrastructure, platforms, packages, processes, and knowledge. As you’ll see within the bar chart on the best of the slide, kind of 30% of our transformation investments over the past 3 years have been in era, with the remaining associated with non-tech workers and specialists. In 2023, we have observed a shift from consulting bills to era and repayment as we have gotten deeper into the execution of our transformation, and also you must be expecting to look this development proceed. In general, we invested over $12 billion in era in 2023.

Past transformation, our era investments also are targeting virtual innovation, new product construction, Jstomer revel in improvements, and spaces that fortify our infrastructure like cloud and cyber. On Slide 11, we display key shopper and company credit score metrics. Throughout branded playing cards and retail services and products, roughly 80% of our card loans are to shoppers with FICO rankings of 680 or increased. And throughout each portfolios, NCL charges have reached pre-COVID ranges, however we proceed to be effectively reserved, with a reserve-to-funded mortgage ratio of seven.7%. In our company portfolio, nearly all of our publicity is funding grade, which is mirrored in our low point of non-accrual loans at 63 foundation issues of general company loans.

We be ok with the standard and mixture of our portfolio and are effectively reserved for the present atmosphere. Because it pertains to Argentina, we have incorporated a slide within the appendix summarizing the worth it brings to the worldwide community and the wider institutional Jstomer relationships we cling, in addition to the power of our monetary profile in Argentina. Because it pertains to Russia, we have additionally incorporated a slide within the appendix. You’re going to see that the reserves for switch possibility that we have got taken have considerably lowered our web funding, and subsequently, our possibility of loss associated with Russia.

On Slide 12, we display our abstract steadiness sheet and key capital and liquidity metrics. We care for an excessively robust $2.4 trillion steadiness sheet, which is funded partly by way of a well-diversified $1.3 trillion deposit base, which is deployed into fine quality, diverse belongings. Nearly all of our deposits, $801 billion, are institutional and operational in nature span throughout 90 nations, and are complemented by way of $426 billion of U.S. non-public banking and wealth deposits. We have now roughly $561 billion of HQLA and roughly $690 billion of loans, and we care for general liquidity sources of $965 billion.

Our LCR reduced modestly to 116%, and our tangible e-book price in keeping with proportion used to be $86.19, up 6%. At the bottom-left nook of the slide, we display a complete CET1 stroll to supply extra element at the drivers in 2023. First, we generated $8 billion in web revenue to commonplace, which added 70 foundation issues. 2d, we returned $6.1 billion within the type of commonplace dividends and proportion repurchases, which drove a discount of about 53 foundation issues. 3rd, we benefited from the have an effect on of decrease charges on our AFS funding portfolio, which drove an building up of 20 foundation issues.

And after all, the rest 3 foundation issues used to be in large part pushed by way of increased RWA, in part offset by way of capital releases from the go out markets. We ended the quarter with a 13.3% CET1 capital ratio, roughly 100 foundation issues above our regulatory capital requirement of 12.3%. As you’ll see, we have grown our CET1 ratio by way of roughly 30 foundation issues over the process the yr whilst returning over $6 billion to shareholders in commonplace dividends and repurchases. Sooner than I take you thru every enterprise, as Jane discussed, we are not happy with the efficiency and returns of our companies, and subsequently, we’re laser-focused on executing in opposition to our technique, simplifying the group, and rightsizing the expense base. As a reminder, the investments that we have been making have impacted every of the companies, as you’ll see in the following couple of slides. So, now turning to Slide 13, the place we display the effects for services and products for the fourth quarter and the complete yr.

Revenues have been up 6% this quarter, in large part pushed by way of NII throughout TTS and safety services and products, in part offset by way of NIR pushed by way of the Argentina devaluation. Services and products’ non-interest revenues have been up 20%, with the exception of the have an effect on of the Argentina devaluation. Bills greater 9%, essentially pushed by way of endured investments in era, product innovation, and Jstomer revel in. Price of credit score used to be $646 million, pushed by way of a reserve invoice to roughly $652 million, essentially related to switch possibility in Russia and Argentina.

Web revenue reduced to $776 million as increased revenues have been greater than offset by way of increased price of credit score and better bills. Moderate loans have been up 6%, essentially pushed by way of robust call for for running capital loans in TTS, each in North The us and across the world. Moderate deposits have been down 3% because the have an effect on of quantitative tightening greater than offset new Jstomer acquisition and deepening with present purchasers. Then again, sequentially, deposits have been up 1%. Services and products delivered an RoTCE of 13.4% for the quarter.

And for the complete yr, services and products delivered an RoTCE of 20% on $18.1 billion of profit. On Slide 14, we display the effects for markets for the fourth quarter and the complete yr. Markets’ revenues have been down 19% as opposed to a powerful quarter closing yr, pushed by way of a decline in constant revenue and the have an effect on of the devaluation, in part offset by way of an building up in equities. Mounted revenue revenues reduced by way of 25%, in large part pushed by way of charges and currencies on decrease volatility and an important slowdown in December, in addition to the have an effect on of devaluation.

Then again, we noticed excellent underlying momentum in equities, with revenues up 9%, pushed by way of positive aspects throughout all merchandise. And we endured to develop top balances whilst making forged development on our profit to RWA goal. Bills greater 8%, pushed by way of investments in transformation and possibility and controls and volume-related prices, in part offset by way of productiveness financial savings. Price of credit score used to be $209 million, pushed by way of a reserve invoice of roughly $179 million essentially related to the switch possibility in Russia and Argentina. Markets reported a web lack of $134 million, as revenues have been greater than offset by way of increased bills and better price of credit score. Moderate loans greater 4% to $115 billion as we noticed greater Jstomer call for for credit score riding development in warehouse lending.

Moderate buying and selling belongings greater 18% to $391 billion, in large part pushed by way of treasuries and mortgage-backed securities given the robust Jstomer process in constant revenue for a lot of the yr. Whilst it used to be a difficult quarter, markets carried out reasonably effectively for the complete yr, with profit of $18.9 billion and an RoTCE of seven.4% in comparison with very robust efficiency within the prior yr. And we’re targeting bettering returns through the years thru a mixture of profit development, expense self-discipline, and capital optimization. On Slide 15, we display the effects for banking for the fourth quarter and the complete yr. Banking revenues greater 22%, pushed by way of development in funding banking charges and decrease losses on mortgage hedges, in part offset by way of decrease company lending revenues.

Funding banking revenues greater 27% yr over yr, pushed by way of DCM and advisory because of enhancements in marketplace sentiment. In advisory, we noticed indicators of power throughout era, healthcare, and effort, and we be ok with the power of our pipeline. Company lending revenues, with the exception of mark-to-market on mortgage hedges, reduced 26%, in large part pushed by way of decrease profit proportion from funding banking services and products and markets. Bills greater 37%, essentially pushed by way of the absence of an operational loss reserve unlock within the prior yr. Aside from the reserve unlock, bills have been kind of flat. Price of credit score used to be $185 million, pushed by way of a reserve construct related to the switch possibility in Russia and Argentina.

The NCL price used to be 32 foundation issues of moderate loans, and we ended the quarter with a reserve-to-funded mortgage ratio of one.6%. Banking reported a web lack of $322 million, as increased bills and value of credit score greater than offset increased revenues. RoTCE used to be unfavorable 6% for the quarter, and for the complete yr, banking reported an RoTCE of unfavorable 0.2% on $4.6 billion of profit. So, obviously, we now have extra paintings to do on returns. And whilst it is tricky to are expecting when process will normalize, we are positioning the enterprise to capitalize at the rebound out there pockets.

And that comes with proceeding to spend money on key development spaces, upgrading skill and conventional sectors, and proceeding to rightsize the enterprise. On Slide 16, we display the effects for wealth for the fourth quarter and the complete yr. Wealth revenues reduced 3%, pushed by way of decrease deposit spreads, in part offset by way of decrease loan investment prices and better funding commission revenues. We are seeing excellent momentum in non-interest profit, which used to be up 13% within the fourth quarter, pushed by way of increased funding belongings, greater Jstomer process, and marketplace efficiency. Bills have been up 4%, essentially pushed by way of investments in possibility and controls and era, in part offset by way of changing strategic investments and tighter expense regulate as we start to rightsize the expense base within the enterprise. Wealth reported a web revenue of $5 million, as revenues have been most commonly offset by way of increased bills.

Shopper balances greater 6%, essentially pushed by way of increased Jstomer funding belongings, in part offset by way of decrease deposit balances. Moderate loans have been flat as we proceed to optimize capital utilization. Moderate deposits reduced 2%, reflecting the ongoing combine shift of deposits to higher-yielding investments on Citi’s platform. Shopper funding belongings have been up 12%, pushed by way of new acquisitions and the take pleasure in increased marketplace valuations. And we are seeing excellent momentum in web new belongings, which greater than doubled to $16 billion for the quarter. For the complete yr, we added an estimated $21 billion in web new belongings.

RoTCE used to be 0.1% for the quarter, and for the complete yr, RoTCE used to be 2.6% on $7.1 billion of profit. Taking a look forward, we are going to reinforce the returns within the enterprise as we spend money on skill to execute on our refocused approach to force funding profit with an eye fixed towards rightsizing the expense base. We can wind down noncore tasks, go out much less productive performers, and give a boost to self-discipline throughout each and every expense line. On Slide 17, we display the effects for U.S. non-public banking for the fourth quarter and the complete yr.

U.S. non-public banking revenues greater 12%. Branded playing cards’ revenues greater 10%, pushed by way of increased web curiosity margin and interest-earning balances development of 13%. And we proceed to look wholesome development in new account acquisition, up 8%; and spend volumes, up 3%. Retail services and products revenues greater 15%, additionally pushed by way of increased web curiosity margin and curiosity incomes steadiness development of eleven%, in addition to decrease spouse bills because of increased web credit score losses.

Retail banking revenues greater 15%, pushed by way of increased deposit spreads, mortgage development, and advanced loan margins. Bills reduced 1% as increased bills to fortify lending methods and Jstomer engagement, in addition to the rollout of simplified banking, have been offset by way of decrease nonvolume-related bills. Price of credit score of $2.1 billion greater 20%, pushed by way of increased NCLs, in part offset by way of a decrease ACL invoice. Web revenue greater to $201 million, pushed by way of increased revenues, in part offset by way of increased price of credit score. Moderate deposits reduced 5%, pushed by way of the switch of relationships and the related deposits to our wealth enterprise. We proceed to make development in opposition to our virtual technique with virtual deposits up 14% and lively virtual customers expanding 6%.

RoTCE for the quarter used to be 3.6%, and for the complete yr, U.S. non-public banking delivered an RoTCE of 8.3% on $19.2 billion of profit. Right here, once more, we are targeting bettering the go back profile of the enterprise. Managing thru this a part of the credit score cycle and proceeding to make development in retail banking shall be key. On Slide 18, we display effects for all different on a controlled foundation, which contains company different and legacy franchises and excludes divestiture-related pieces.

Revenues reduced 17%, pushed by way of a lower in NII of 29%, pushed by way of the closed exits and wind-down, in part offset by way of increased noninterest profit. And bills greater to $4.5 billion, pushed by way of the FDIC particular evaluate and restructuring prices, in part offset by way of decrease bills in each wind-down and go out markets. Turning to Slide 20. As we kick off 2024, the surroundings stays relatively unsure and markets stay tricky to are expecting. However in response to what we see these days, we predict revenues to be roughly $80 billion to $81 billion, as proven at the left facet of the slide, and at the proper facet of the slide, we listing the important thing drivers.

In TTS, we predict profit development to be pushed by way of new Jstomer wins, deepening with our present purchasers, and endured momentum with business purchasers as we proceed to leverage our international footprint and product innovation. In safety services and products, we now have an excessively wholesome pipeline and can proceed to onboard belongings below custody from new mandates, win new purchasers, and deepen relationships with present purchasers. In funding banking, we watch for a rebound in process and to care for our place because the pockets recovers. Through the years, we do be expecting the investments that we have made in key development spaces, comparable to healthcare and era, to permit us to achieve proportion, and we additionally be expecting a modest rebound in wealth as we execute on our refocused technique with an eye fixed towards rising funding charges, in particular with our present purchasers. In USPB, we predict endured development in card balances pushed by way of the investments we have been making, in addition to decrease spouse bills in retail services and products to proceed to force profit development.

We additionally be expecting to proceed to reinforce our retail department efficiency. And because it pertains to NII, with the exception of markets, we predict web curiosity revenue to be down modestly as the amount development we predict from loans and deposits is greater than offset by way of decrease U.S. charges and the aid from the closed exits and wind-down. Turning to Slide 21, we predict bills to be roughly $53.5 billion to $53.8 billion, down from $54.3 billion, topic to volume-related bills. The lower in bills shall be pushed by way of some great benefits of our organizational simplification, a endured aid from go out markets and wind-down, and productiveness financial savings, in part offset by way of investments in possibility and controls and volume-related bills. Embedded on this steerage contains an increased point of severance, in addition to further possible prices associated with the organizational simplification, totaling roughly $700 million to $1 billion.

This may give a contribution to lowering headcount over 2024 and the medium time period, which we will be able to speak about at the subsequent slide. On Slide 22, we display the drivers of headcount and expense aid over the medium time period. As we have mentioned up to now, there are 3 drivers that can cut back our bills: organizational simplification, together with the aid of control layers; getting rid of stranded prices as we take further movements to cut back extra overhead in mild of the go out markets; and figuring out productiveness financial savings from our investments within the transformation and era. We predict the combo of those 3 drivers to cut back our headcount by way of a web 20,000, with the exception of Mexico, and generate a web run price save of $2 billion to $2.5 billion over the medium time period. This may underpin our trail to $51 billion to $53 billion of bills, topic to volume-related bills.

Each the headcount and expense aid will let us rightsize the company and companies to reinforce efficiency and go back. On Slide 23, we display our outlook for U.S. playing cards in 2024. In the case of credit score efficiency, in response to the traits that we are seeing, we predict NCL charges each in branded automobiles and retail services and products portfolios to upward push above pre-COVID ranges and height in 2024.

On a full-year foundation, for 2024, we predict the branded playing cards NCL price to be within the vary of three.5% to 4%, and the retail services and products NCL price to be within the vary of five.75% to six.25%. From an allowance standpoint, we’re reserved for a weighted eight-quarter moderate unemployment price of just about 5%, which embeds a problem state of affairs of roughly 6.8%. ACL builds in 2024 will essentially be a serve as of the amount development that we see, in addition to adjustments within the macro situations and the chances related to them. And we predict endured momentum in playing cards, albeit extra in keeping with mid-single-digit mortgage development. On Slide 24, we summarize our medium-term objectives. From a profit standpoint, we proceed to be expecting 4% to five% profit CAGR within the medium time period, together with the continued aid of profit from the ultimate of the exits and the wind-down.

From an expense standpoint, we are now at the trail to decreasing our bills starting in 2024. From a credit score standpoint, we predict credit score prices to be a serve as of portfolio combine, volumes, and macro assumptions. And we’re dedicated to returning capital to our shareholders and, in truth, anticipated to a modest point of buybacks within the first quarter of 2024. So, to wrap it up, whilst the sector has modified considerably and the parts have shifted since Investor Day, our technique has now not, and we’re assured we’re at the proper trail to ship our 11% to twelve% RoTCE within the medium time period.

With that, Jane and I will be able to be at liberty to take your questions.

Questions & Solutions:

Operator

[Operator instructions] OK, our first query will come from Mike Mayo with Wells Fargo. Your line is now open. Please pass forward.

Mike MayoWells Fargo Securities — Analyst

Hello. I seemed intimately on the income presentation, particularly Slide 4. And I believe the query is on many of us’s minds. I depend 12 restructurings at Citigroup, and I depend 12 restructurings that experience failed at Citigroup.

It’s possible you’ll disagree with the quantity 12. It may well be 5. It may well be 8, it may well be 12. It may well be extra.

However I have now not spoken to at least one individual of any investor who would say that Citi has succeeded on its prior restructuring. So, the query is, why is that this time other? Primary, you understand, who is that this new and advanced Citigroup? Quantity two, why are not bills down much more, particularly when few people who I talked to assume you’ll be able to hit your profit goal. And 3, Jane, what’s your conviction point of having to that 11% to twelve% RoTCE in ’25 or ’26? Thanks.

Jane FraserLeader Govt Officer

Neatly, thanks very a lot certainly, Mike. I will get started with who’s Citi. Citi is, I am overjoyed to mention, after all easy. At Investor Day, you understand, I set out a imaginative and prescient to be the preeminent banking spouse for purchasers of cross-border wishes.

That imaginative and prescient used to be in response to 5 core interconnected companies. We set out on a planned trail to get there, and over the past 3 years, we have accomplished so. Web page 4 is who we’re these days. We’re 5 interconnected companies; not more, no much less. We have now our group that now aligns with the ones 5 companies, and this permits us to concentrate on two priorities.

The primary is bettering the efficiency and the returns of the ones 5 core companies in order that we will be able to meet the medium-term RoTCE goal we laid out. And the second one is on addressing our regulatory problems during the transformation. And I — I’d even be — I wish to notice that I absolutely acknowledge that 2024 is an inflection yr, Mike, and I and the control workforce are responsible to ship, and that you just and our buyers have the transparency you wish to have to carry us responsible. So, why is that this time other? Glance, it isn’t misplaced on me that there were many makes an attempt up to now to modify this company. I and the control are absolutely dedicated to reworking this corporate for the long run, and we’re addressing the problems that experience held us again up to now.

And you have evidence issues of the closing 3 years the place we have made numerous tricky choices, and we now have put thru an incredible quantity of trade to get to the straightforward Citi that we’re these days. We totally reset our technique, so we’ve a considerably extra targeted enterprise and working type. We have now introduced probably the most consequential set of adjustments to our organizational type, and albeit, from my standpoint, extra importantly, how we run the financial institution for the reason that monetary disaster geared toward simplifying the financial institution and extending responsibility. You might have observed we have moved briefly.

We are on the right track with our execution of this effort, and it’ll generate over $1 billion of run-rate saves the tip of the primary quarter purely from the group efforts that we have installed, that we introduced in September. We have now accomplished this whilst making an investment, and I believe that is some other distinction. We have now invested closely in our transformation. And whilst that used to be catalyzed by way of our consent orders, those investments will in the end ship advantages from automation, from well-governed information, from consolidated platforms. We even have made vital investments in our enterprise to fortify the 4% to five% profit development and to verify Jstomer momentum.

and the ones investments have helped us increase our product suite, spend money on virtual functions, automate our processes, seize synergies thru a shopper group. We have now additionally introduced in some improbable exterior skill in key strategic spaces, together with Andy to steer wealth. And we’ve a excellent steadiness between skilled Citi other folks and exterior skill with contemporary views thru a couple of layers of the group. So, we’re doing issues the best manner. We are doing it for the long run, and we are shifting with urgency.

We can want and are spending the cash that we wish to — to deal with our regulatory necessities, however that is already embedded in our trail to the 11% to twelve% RoTCE within the medium time period. And this — this already appears like a unique financial institution. We have now extra paintings to do. I acknowledge ’24 is a vital yr. And as I mentioned, the decks are a lot clearer now in order that we will be able to center of attention on two imperatives: bettering our enterprise efficiency and executing the transformation.

Nor is a completely linear trail, as we have observed over the past 3 years. Everyone knows that. We get we need to construct our credibility. We are dedicated to doing so, and we’re offering way more transparency across the enterprise efficiency so buyers have a greater sense of ways we are doing. And I and my control workforce, in your ultimate query, are absolutely in charge of getting this all accomplished.

We can. Mark bills.

Mark MasonLeader Monetary Officer

Yeah. Thank you, Jane. And why are not bills down extra, I believe, in your level, Jane, we have been making an investment within the franchise, each at the entrance finish and, importantly, at the transformation and the chance and controls. What I’d indicate is that during 2023, we delivered bills of $54.3 billion ex the FDIC rate.

That’s the steerage that we gave. However I might additionally spotlight that we additionally incorporated $780 million related to the restructuring rate. This is greater than I had articulated in the best way of steerage. So, the capability that we created thru our efforts during the yr, we use that during a wonderful means. We use that to fund the org simplification prices in order that we will be able to understand the financial savings down the road.

And we are going to proceed to regulate our bills in a disciplined and sensible type. That suggests spending what we wish to spend at the transformation and possibility and controls however riding larger efficiencies and productivities alongside the best way to verify we get to that 11% to twelve%. And in your level, if revenues are to come back down or to — or are available less than anticipated, we’re going to regulate the bills accordingly.

Operator

Thanks. Our subsequent query comes from Glenn Schorr with Evercore. Your line is now open.

Glenn SchorrEvercore ISI — Analyst

Hello. Thank you very a lot. So, you are obviously making numerous development, and I hate to, like, ask this query too early, however I believe it is crucial. Your expense information is excellent, your profit is excellent, and you have got your palms across the bills.

However the query I’ve is, how do you take into accounts balancing that near-term profitability development that all of us need desperately with ensuring you do make the best investments? As a result of if you happen to glance world wide, there may be numerous puts to develop, whether or not or not it’s your department community or wealth control aspirations that you’ve, or the virtual investments. So, how do you — how do we all know that all of the proper long term investments are being made when you extract prices, in all of the excellent tactics that you’ve got been doing?

Mark MasonLeader Monetary Officer

Yeah. Thank you, Glenn. I assume I will get started. And Jane, be happy to — so as to add in on it.

Glance, this can be a balancing act, proper, and we do take a look at every of our 5 core companies. We clearly are transparent at the technique, however the place’s the expansion, the place are the go back alternatives related to them, and the way will we be sure we are deploying sources after them to be able to ship for the customer and ship on the ones returns through the years? We need to juxtapose that in opposition to the specified funding to modernize our operations, and we are making the ones trade-offs regularly. However importantly, after we do make investments to seize the ones development alternatives, we are agile — we are seeking to be agile about it, this means that if — if the ones alternatives do not play out in the best way we are anticipating since the cycle simply does not mature or materialize in that type, we have were given to be disciplined sufficient to dial them again. And that’s the reason what you could have observed during the last yr plus, is that we have been making an investment within the enterprise. The place we did not see the upside that we expected, we dialed again that spend, proper? And that’s the reason the kind of iterative procedure, if you’ll, Glenn, that we are setting up to make certain that at the different facet of this, we are nonetheless located to seize development.

Funding banking, for instance, we now have invested in healthcare and era, construction out to organize ourselves for when that marketplace rebounds. We be ok with that. We have now accomplished equivalent issues in the best way of our wealth enterprise. We are making an investment closely in our TTS franchise to verify we will be able to stay aggressive there. So, it is that form of self-discipline that is required.

It’s once in a while a trade-off, however it is one who we have been very targeted and being sensible about.

Glenn SchorrEvercore ISI — Analyst

I admire that. Perhaps a quickie on services and products, clearly, up 16% in a document is excellent. I have no idea if you happen to’ve dimensionalized how a lot used to be nice as opposed to new enterprise, however you will have excellent core enterprise momentum and a pipeline of 1 however now not but funded. So, I assume the query is that, you understand, the place can services and products be over the following two years with regards to development, whilst charges come down but your corporation is successful new wins?

Mark MasonLeader Monetary Officer

Yeah, certain. You wish to have me to — certain.

Jane FraserLeader Govt Officer

Yeah, and I will — I will — I will leap in too. Let’s possibly get started with TTS. You realize, after we take into accounts the efficiency of TTS, which, as we are saying, the expansion this yr up 19% ex Argentina got here from a mixture of each charges and the robust enterprise movements we have taken. And you’ll see that within the other drivers.

Move border used to be up 23%, business playing cards up 8%. I am with regards to the expansion potentialities, we have generated 22% in moderate profit development from ’21 to ’23. Neatly forward of the Investor Day steerage, we had a excessive unmarried digit. That used to be now not simply on account of the velocity cycle.

It clearly helped. And we for sure be expecting to develop revenues at mid-single digit now as we lack the prior sessions that benefited from the ones charges will increase. And that’s the reason going to come back from a couple of other spaces: one, the point of interest on our unfastened technique, the place we are capitalizing on robust Jstomer engagement, market-leading Jstomer answers; and we are turning in on numerous the other development tasks that we have been making an investment in throughout all our Jstomer segments. We’re going to proceed optimizing our deposit e-book and bringing in fine quality deposits. And in a low-rate atmosphere, GDP is usually increased, so you would be expecting to look some increased development in our capital-efficient fee volumes.

You can see us proceeding to procure new purchasers and deepen relationships with present purchasers. You realize, and I level to our self belief right here, 27% building up in our new Jstomer acquisition this yr, and a sustained win-loss ratio of 82% on new offers. And that used to be throughout other Jstomer segments. And revenues from those purchasers simply continues to ramp up as we increase around the other geographies and product suites with them. And you’ll be able to additionally proceed to look us making an investment within the infrastructure and platforms we have been doing, launching new leading edge merchandise, and we are seeing momentum from probably the most issues we have not too long ago accomplished. Citi Token Services and products, Cost Specific, 24/7 clearing, and so forth.

So, I believe the primary takeaway from TTS is that we will be able to proceed to spend money on it. We predict to look robust Jstomer momentum. We have now been getting constantly excellent Jstomer comments referring to our functions, so we predict to look excellent international development that can for sure assist as the velocity cycle comes down. And it is — this can be a crown jewel for a explanation why. After which, simply briefly on safety services and products.

And I believe we are — we are seeing we discussed we have were given plenty of marquee wins there around the all of the Jstomer segments. That pipeline is each buyers and issuers. And one of the crucial core methods that Occam installed position used to be to develop proportion with the U.S.-based asset managers. We had an excessively low — we have been at 2.6% proportion in 2020.

We are now at 4.3%, and numerous the expansion within the pipeline has been coming now not most effective from our international community names, but in addition from the marquee avid gamers within the U.S. asset supervisor house. And I believe that is our talent to glue our functions. And that provides those avid gamers large efficiencies for our purchasers.

Mark, anything else I have neglected there? You realize, I — you understand, I like this enterprise.

Mark MasonLeader Monetary Officer

As you must. Rightfully so. Prime-returning enterprise, nice development potentialities. To respond to certainly one of your questions, Glenn, about part of the NII development lets characteristic to rates of interest, and about part I might say is enterprise motion.

So, us running with, you understand, the purchasers to force that momentum. After which, if you happen to take into accounts the noninterest profit for services and products, they are up about 20% within the quarter yr over yr if you happen to exclude the have an effect on of the Argentina devaluation and up 7% on a full-year foundation, and so excellent momentum within the noninterest profit development as effectively.

Operator

Our subsequent query comes from John McDonald with Independent Analysis. Your line is now open.

John McDonaldIndependent Analysis — Analyst

Hello. Just right morning. Mark, I used to be hoping to invite you the way are you fascinated by the pacing of capital construct. Clearly, the Basel III proposals are in the market, however they may trade, after all.

Even though they do not trade, you will have a few years to leg into the ones with the phase-ins and in all probability in mitigation alternatives. You realize, how must we take into accounts you roughly construction capital, given all the ones variables and, you understand, the facility to shop for again some inventory alongside the best way, as you discussed previous?

Mark MasonLeader Monetary Officer

Yeah, certain. So, glance, you understand, John, clearly, the Basel III proposal continues to be in the market and below dialogue. We have now been very vocal in regards to the possible have an effect on of that. We have now additionally been very disciplined about how we have been managing our capital.

We have now constructed that over 30 foundation issues over the process the yr. You might have observed us actively organize that during the yr. We are going to proceed to try this. We clearly generate income that give a contribution to that. We wish to proceed to force development around the enterprise.

We are buying and selling at a, you understand, level 5 instances e-book the place we will be able to we wish to purchase again up to we will be able to in stocks, and we you ought to be disciplined about that during the last couple of quarters, doing that as a modest point. You heard me announcing — you heard me say, we are going to do this once more this quarter at a modest point, however we are going to be — we need to be considerate about what the ones headwinds may seem like. And we are actively running what mitigation movements we would have to place in position, you understand, must it end up nearer to the best way the present proposal sits. So, it is an ongoing lively control that tries to steadiness servicing our Jstomer wishes with clearly preserving a accountable quantity of capital in mild of the uncertainty that is in the market and with an eye fixed towards buybacks the place we will be able to do this.

John McDonaldIndependent Analysis — Analyst

OK. And simply as an expense follow-up, I wasn’t transparent, because the transformation spend peaked, you understand, while you take into accounts what you’ll be able to spend on transformation this yr as opposed to closing yr, and all of the transformation advantages are beginning to kick in at this level.

Mark MasonLeader Monetary Officer

Yeah. So — so, to be transparent, we are going to proceed to spend no matter we wish to spend at the transformation and on possibility and controls. And so, we did see a tick-up this yr. We have now were given a plan for 2024.

And if we have were given to spend, you understand, a bit of greater than what we spent this yr, we are going to spend extra. That is what the plan requires, and so, that is what we’re going to do. That is inside the quantity that I have given you for steerage, proper? And — and so, this is that is essential for us. I believe it’ll force clearly operational development and saves down the road.

It is a part of the two billion to two.5 billion. However that’s the early level, if you’ll, of the transformation spend paying again. I believe, as we mentioned at Investor Day, frankly, we’re going to proceed to look expense advantages past the medium time period from a few of this variation funding that we have –we’ve been making. And so, I’d recall to mind the medium time period as the beginning of the advantages that we’re going to see from the investments we have been making in transformation and possibility and controls.

Jane FraserLeader Govt Officer

Yeah, I believe — yeah, Mark, you are spot on. So, we’re going to proceed making the investments we want all over the transformation. It is a multiyear adventure as we have all the time been transparent round this, in the end with advantages for the shareholders. And extra of the bills that we have been speaking about are a separate out transformation from kind of the working expense base of our companies, which we wish to make sure that is as productive and as efficient as conceivable.

And the kinds of — kinds of advantages we are seeing, that is the second one yr in a row that we have retired 6% of our legacy platform base. And you could have heard me speaking about shifting 20 of our money fairness platforms onto one, six reporting ledgers onto one, 11 sanctioned platforms onto one. So, we begin seeing probably the most advantages of the ones are available different issues. We automatic unbiased worth verification for 90% of our prioritized fixed-income and fairness securities. That is lowered guide controls, that is advanced valuation consistency, that is additionally had an have an effect on at the potency of the enterprise.

We have now loaded 98% of our prioritized wholesale and shopper information into two approved repositories. That may even start to get started having some advantages for us. So, there’s a cumulative impact this is starting to construct now from all of the paintings we have accomplished. However it’ll take a while to in reality kick into the — as Mark mentioned, while you in reality really feel this can be a few years out. However we’re going to stay providing you with the evidence issues of items as we are going.

So, it isn’t only a accept as true with us, that is coming. You can start to see it construct.

Operator

Our subsequent query will come from Jim Mitchell with Seaport International. Your line is now open.

Jim MitchellSeaport International Securities — Analyst

Hiya. Just right afternoon. You realize, Mark, possibly only a follow-up at the expense, you understand, Slide 22, the place you speak about 2 billion to two.5 billion of expense saves, I assume I am — I am suffering with the numbers there. I believe if you happen to take a look at go out and wind-down markets, you are almost certainly just about 2 billion in — in numbers there.

And possibly the stranded prices, you’ll’t get all of that out. You are doing about — severance is a 700 million to one billion in ’24. So, it does not look like there is a ton of tangible price saves in that quantity. And simply possibly I am unsuitable.

If it’s essential simply roughly stroll me during the numbers embedded in there, and if there may be you simply roughly alluded to extra to come back past the intermediate time period.

Mark MasonLeader Monetary Officer

Yeah. I believe the article I might indicate to you is a few issues. One, clearly we are forecasting profit development over this time period. And so, there may be going to be volume-related bills related to that.

The second one factor I might indicate, as I simply discussed to the prior query, is that we are proceeding to spend money on possibility and controls and within the transformation over this time period. And so, what you spot is there is a — there may be an building up in bills related to a minimum of the ones two issues, and that is the reason offset by way of the financial savings that we are beginning to generate, in particular from the org simplification that — that Jane has mentioned, in addition to from the stranded price aid that can proceed to play out, in addition to from probably the most rightsizing of companies that — that we have referenced in probably the most ready remarks. And so, essential to take into accounts there, headwinds and tailwinds that roughly web right down to, you understand, this $2 billion to $2.5 billion. After which, the general level that I might make is that if I take a look at this medium-term selection of $51 billion to $53 billion, that also has Mexico in it. And in one of the crucial different pages, we level to bills round Mexico. However — however on account of the place we’re or shall be within the IPO procedure, that is nonetheless going to be a part of this expense base.

And so, you’ll’t lose sight of that.

Jim MitchellSeaport International Securities — Analyst

Neatly, that is the most important rationalization that the two to two.5 contains some revenue-related quantity development. So, that is useful. After which, simply possibly the opposite the — the — at the slides speaking about profit objectives, one of the crucial large numbers now not mentioned used to be markets. How are you considering — you understand, volatility has are available, you understand, macro photo is getting higher, possibly that muted volatility.

How do you take into accounts that enterprise in ’24 because it relates in your steerage?

Mark MasonLeader Monetary Officer

As you understand, it is a tricky — a tricky enterprise to forecast for sure for a complete yr and, in some circumstances, for 1 / 4. And so, we — we principally roughly sponsored that out. However we have assumed markets roughly flat to, you understand, modestly — modestly down. However we have sponsored it out and it is kind of flat.

Jim MitchellSeaport International Securities — Analyst

Proper. OK.

Mark MasonLeader Monetary Officer

Not one of the 81. Now not of the 80 to 81. However you spot the steerage of NIR ex markets and NII ex marketplace. So, within the — within the 80 to 81, we have assumed it kind of black.

Jim MitchellSeaport International Securities — Analyst

OK nice. Thanks.

Operator

Our subsequent query will come from Ebrahim Poonawala with Financial institution of The us. Your line is now open.

Ebrahim PoonawalaFinancial institution of The us Merrill Lynch — Analyst

Hiya, excellent afternoon. I believe, Mark, simply sought after to —

Jane FraserLeader Govt Officer

Hiya, Ebrahim.

Ebrahim PoonawalaFinancial institution of The us Merrill Lynch — Analyst

Morning — afternoon, Jane. Simply sought after to persist with up on one thing I believe Mark mentioned on the finish of his first actual reaction round. It is very laborious in my seat to determine whether or not you are going to develop revenues or shrink revenues given the macro. Will have to we take it in response to what you mentioned these days, as we glance into ’26, attending to that 11% RoTCE? If that is so, for no matter explanation why, profit falls brief, you’re feeling excellent in regards to the expense flex to mitigate that headwind?

Jane FraserLeader Govt Officer

I — it is Jane. Clearly, I wish to simply leap in on one bit, which is we’re dedicated and we are very assured across the 4% to five% profit development price. So, there is no such thing as a backing clear of that quantity. And that’s the reason in quite a lot of macro environments, and so forth.

And as we glance around the other companies and the projections we now have, we are assured round that. Clearly, if there is a very antagonistic macro atmosphere, and so forth., we have were given different levers we will be able to take. However, Mark, let me cross it to you.

Mark MasonLeader Monetary Officer

And I — in no way used to be I seeking to counsel that we were not assured within the forecast for the highest line. If you happen to take into accounts the tactic and the power of the ones 5 core companies, we have were given numerous conviction round that. With that mentioned, as you indicate, Jane, below a circumstance the place that does not play in the market, clearly, volume-related incentive comp bills and the like, that might naturally come down. We might make certain that they got here down with the profit decline or shortfall, after which we would recalibrate different spend, different investments, spend now not associated with possibility and controls and transformation, however different investments around the platform, we would recalibrate accordingly.

Ebrahim PoonawalaFinancial institution of The us Merrill Lynch — Analyst

Very best. Simply what I wanted. And one fast query. As we take into accounts rightsizing the markets enterprise, they have got been headlines across the muni and the distressed enterprise that you’ve got gotten out.

Is there a possibility the place you — the markets enterprise turns into too small and also you lack the dimensions to be kind of effective and related and sure, or simply around the breadth of industrial, be it constant revenue or equities? Simply if you’ll speak about that. Thanks.

Jane FraserLeader Govt Officer

The quick resolution is not any. We — we — if you happen to take into accounts our markets enterprise, we now have 4 companies, every of which can be round so — 4 billion or so in measurement. You will have our international FX community the place we are usually No. 1 in any yr, simply given the power and in particular the company Jstomer base we activate.

Charges, usually best 3. In combination, those are two of the most important macro swimming pools inside FICC. In the case of the unfold merchandise, we have been striking our financing and securitization enterprise as a part of our simplification absolutely inside markets in order that we have created a unified, scaled spreads product enterprise. After which, after all, equities, the place we are targeting bettering our top providing construction balances.

We have now a method to pass clearly in that top balances. We are happy they have been effectively up this yr pushed by way of Jstomer momentum. And we are a number one equities derivatives franchise. So, you do have those 4 core companies. And I am going again to our large level of differentiation and why we nonetheless — we really feel we are effectively located.

We have now an excessively differentiated company Jstomer base and an excessively — and really robust partnerships between our core markets, franchise, TTS, and banking, and that — and safety services and products. And that is helping us in FX, in commodities, and in charges world wide. So, it is — markets is essential each with regards to its management, but in addition the way it suits into the — the strengths that we have got from this simplicity of the ones 5 core interconnected companies. We have now demonstrated forged returns up to now. I believe numerous the movements we have been taking will assist force returns one day, and also you must be getting self belief while you see the self-discipline, we are striking onto RWA, 5.3%, getting just about that focus on.

We mentioned Investor Day, we are shifting that as much as 6%. The exits we have were given of nonstrategic companies displays our center of attention on potency. And – and we have additionally been performing some excellent investments in — in our era that is getting us right into a excellent position there. So, I believe, you understand, do not — don’t worry about this shrinking. We are simply ensuring that it in reality performs to our strengths and we optimize the returns.

Operator

Our subsequent query will come from Gerard Cassidy with RBC. Your line is now open.

Gerard CassidyRBC Capital Markets — Analyst

Afternoon, Mark. Jane, afternoon.

Jane FraserLeader Govt Officer

Hiya.

Gerard CassidyRBC Capital Markets — Analyst

Mark, are you able to proportion with us, on your profit information, within the web curiosity revenue, I do know you discussed it is going to be decrease, and a part of it’s because of decrease rates of interest. A few of your friends have pop out with their guides the use of the ahead curve of their web curiosity revenue forecast, which contains, for the Fed in our nation, six cuts. Are you able to give us some colour what sort of price atmosphere — I do know you mentioned decrease charges, however any, you understand, insights round that information?

Mark MasonLeader Monetary Officer

Yeah. I believe what I level you to is within the vary of the 81 — the 80 to 81. You realize, we are assuming 3 to 6 cuts, proper? You were given a spread there. And the rationale I described it that — like that, excuse me, is that if you happen to take into accounts our IRE, as we have proven it within the Qs prior to, we are located such that, you understand, with a 100-basis-point transfer, parallel shift in price around the curve, the U.S.

buck have an effect on would most effective be a pair hundred million greenbacks, proper? And so, to the unfavorable, clearly, however it is a few hundred million greenbacks. And so, as we take into accounts that forecast and as — as I discussed, NII being down a bit of, that covers, you understand, roughly 3 to 6 cuts over the process 2024, most probably, you understand, again loaded. However that is what’s in there.

Gerard CassidyRBC Capital Markets — Analyst

Excellent, I admire that. After which, Jane, extra of a qualitative query moderately than quantitative. However clearly, there may be a lot of shifting portions of the methods that you just guys are executing on exiting companies, downsizing companies. Particularly within the downsizing, I believe you guys discussed the headcount about 20,000 coming down.

How do you stay the morale of the group increased when you’ve got all these tricky — tricky choices that you just all need to make?

Jane FraserLeader Govt Officer

Yeah, effectively, we have additionally were given spaces which can be rising. So, that does assist too. It is the — we now have a diverse portfolio right here. I believe we are very aware of, you understand, that there’s a human have an effect on of the choices that we are making.

We are seeking to be as clear with our other folks, as we’re with our buyers, about what we wish to do, why we are doing it, what to anticipate, and laying that out so other folks perceive the common sense in the back of the choices, after which they perceive what the choices are as briefly as — as they are able to. I believe that is the maximum humane manner to try this.

Operator

Our subsequent query comes from Erika Najarian with UBS. Your line is now open.

Erika NajarianUBS — Analyst

Hello, I am sorry to extend the decision. I thanks for your whole colour. Simply — only one extra query. Jane, when will you’re feeling relaxed giving us a buyback outlook that is — that is past simply fourth quarter? You realize, I do know you continue to have just a little little bit of, you understand, tactics to move.

However, you understand, you do have a 100-basis-point buffer in your minimal. And I do know Basel III endgame continues to be in the market. And I am certain that lowering possibility simply does not imply bills but in addition lowering your, you understand — or being aware of your RWA footprint. And given the place your inventory is relative to e-book, when will you be extra relaxed about giving kind of a longer-term outlook that is underpinning your rosy goal on the subject of the buyback?

Jane FraserLeader Govt Officer

Erika, it is a — it is a nice query. It is one I ask myself each and every morning after I stand up as a result of it is — given the place we commerce, the worth for our shareholders of buybacks is big. And Mark and I are very dedicated to doing so. We additionally know that we are construction our credibility.

and I do not wish to say issues that we are not going to ship in opposition to, even supposing we are going to have to modify. I believe it is one of the crucial values that we are in reality seeking to adhere to very strongly. I’m with the NPR. I believe we’re going to get a greater sense about this quickly. The remark length simply were given prolonged and — and, you understand, we wish to see what this is.

I believe you could have all heard us on the Senate banking hearings, with our issues about it. I very a lot hope that it’s both totally revised or now not — or very materially so it does not have the unfavorable have an effect on at the economic system and the U.S. banking machine competitiveness, the transfer for extra enterprise, the shadow banks, which I believe has were given to some extent which isn’t wholesome. So, we are going to wait and notice prior to — the place that comes out prior to we give it to you.

However I — I’d be asking precisely the similar query on your sneakers as effectively.

Erika NajarianUBS — Analyst

Thanks. I believe that it used to be very useful that you just mentioned in this public discussion board the place you are seeking to construct credibility as a result of as I take into accounts, you understand, what lengthy most effective buyers had been loss of life to look from Citi with regards to the former management used to be that kind of consciousness. And I believe simply having that consciousness reputation shall be crucial to buyers. So, thanks.

Jane FraserLeader Govt Officer

Thanks.

Operator

Our subsequent query will come from Matt O’Connor with Deutsche Financial institution. Your line is now open.

Matt O’ConnorDeutsche Financial institution — Analyst

Hello. I wish to persist with up on the remainder of the publicity on Web page 34. Looks as if you guys have taken a in reality excellent whack on the web funding. And also you additionally highlighted how the CTA can be capital-neutral although you did not have to write down that down.

However what about the rest publicity? And simply, like, assist body, are you liable for a few of these unremittable company dividends? I simply do not — I believe numerous us do not remember the fact that form of publicity. And is it a possibility to you going ahead, or did you optimistically transparent the decks from the outdoor publicity going ahead?

Jane FraserLeader Govt Officer

Yeah. And if truth be told I — I — I additionally wish to roughly take a bigger-picture resolution to that prior to I flip it to — to Mark as a result of I’d have idea that could be a query this is on everyone’s minds, in particular given the company’s total low point of returns and our headline numbers this quarter in regards to the — what we have — what — what we have been doing with Russia and Argentina, after which kind of the larger strategic query in the back of it, after which, we’re going to get in your specifics at the Russia entrance. If you happen to take into accounts Citi, we now have a differentiated international enterprise type. And that implies we are dedicated to the nations during which our multinational purchasers perform over the long term.

So, that implies we cling long-term capital in the ones nations upon which we generate forged returns during the cycle. And I will simply level to our main services and products and FX companies are the guts of that community, and they are producing double digits as you’ll see. With that footprint comes a suite of dangers. I recall to mind them with regards to credit score, forex, transferability of capital, and we have confirmed our talent to regulate the ones dangers constantly over an extended time frame.

And with admire to the This autumn forex and switch pieces, whilst the timing used to be unknown, you understand, we have highlighted the ones dangers in our — in our disclosures for a few years. I might say Russia is moderately distinctive. It is a warfare, and for us, a extremely odd liquidation. We have now navigated it rather well. We have now carried out our wind-down in an orderly manner with very low losses for our purchasers and really low losses for us.

Our final web belongings are actually 100% reserved in opposition to. And I believe, in a similar fashion, if I simply contact on Argentina for a minute as a result of I am certain other folks have were given a couple of questions about that. In a similar fashion, over the past a number of years, we de-risked our enterprise type there. We do not have a shopper financial institution, so we in reality lowered down our rising marketplace exposures to only our institutional presence targeted at the multinational purchasers, you could have heard us speak about that, and choose high-grade native purchasers. Taking a look at Argentina, it is a excellent enterprise for us over the cycle. Or even after the affects of This autumn, we had lower than $5 million in credit score losses in Argentina over a 10-year length.

That is outstanding, $5 million over 10 years. In the case of the forex possibility, all of us have to place revenues, the authentic price as opposed to the parallel marketplace price. We have been in a position to partly however now not absolutely hedged the publicity. However we have been for sure all the time take financial choices at the enterprise we do and did, aware of most probably devaluations and capital controls. And the reserve, you understand, is a reserve.

It facilities at the talent to transform and switch capital as in keeping with U.S. banking regulations. So, I simply wish to put a part of issues at this quarter into that context. We have now a world enterprise type.

It is closely targeting high-grade multinational purchasers. Our observe document for managing the quite a lot of dangers related to our international community has been very robust. And I believe you are seeing us with an excessively conservative, you understand, reserve profile. Mark, what would you upload?

Mark MasonLeader Monetary Officer

In no time on — at the Russia level, as — as you understand, and as a slide issues out, we proceed to convey our publicity down there. It is right down to $6.5 billion, is down 13% from the former yr and — and — and a 3rd from 2021. You realize, we introduced down the shopper loans, the shopper deposits in an important manner there. And necessarily, what is left is that we — we now have a custody enterprise, and we’re preserving company dividends which can be our purchasers’ proceeds. We are not able to pay the ones out by way of legislation, by way of — by way of legislation, and so, we need to cling the ones.

And that’s the reason what is being referenced within the slide the place we are saying unremittable Russia company dividends. And so, that — that’s not a possibility, that is a loss for us, however we are not able to roughly transparent the ones on account of the state of play in Russia at this level.

Matt O’ConnorDeutsche Financial institution — Analyst

OK, that used to be transparent. After which, simply one after the other, in bank card, you understand, numerous your friends be expecting losses to move up from right here, however — however maximum appear to be announcing they’ll height this yr, together with you. And simply what offers you self belief that the cardboard losses will height this yr? Is it simply getting again to that, you understand, little bit above normalized point? Is it some tightening that you’ve got accomplished? You realize, what is — what is riding that self belief searching out this yr? As a result of it is clearly a step-up coming nonetheless. Thank you.

Mark MasonLeader Monetary Officer

Certain, there is a — there is a step-up coming. We — we give a forecast on ’23, as you indicate, to what the — the full-year estimate for NCL shall be for each branded and for retail services and products. What I’d indicate is you’ll see if truth be told at the slide how there used to be a dip in loss charges all over the COVID length. And so, to some degree, what we are seeing is more or less a catch-up of the ones, as the ones portfolios undergo an extended maturation than what you would generally see in a playing cards portfolio. On best of that, we have been originating new card the place you spotted our acquisitions have grown.

So, we clearly have new card loans, and the ones are going thru a a lot more customary maturation length. And so, as we take a look at roughly the early buckets and the delinquencies which can be enjoying out, we have were given an attractive excellent sense for after we would be expecting the ones to height and at what point. And we expect they will height inside ’24. So, that is captured in that moderate forecast that we have given. We have not made subject material adjustments to our underwriting.

Then again, there’s combine evolution that occurs. Transact — we now have plenty of transactors that experience roughly come directly to our portfolio and are within the mixture of our branded portfolio as effectively. And so, anyway, the ones are the drivers that give us self belief and tell the trajectory that we — that we are speaking about right here.

Operator

[Operator instructions] Our subsequent query will come from Ryan Kenny with Morgan Stanley. Your line is now open.

Ryan KennyMorgan Stanley — Analyst

Hello. Thank you for taking my query. So, I’ve a query on quantitative tightening. Questioning if in case you have any early ideas on how Citi’s located if the Fed ends reduce early.

Is that, you understand, a subject material catalyst?

Mark MasonLeader Monetary Officer

Yeah, once more, I imply, after I — after I take into accounts our rate of interest publicity, and for U.S. buck specifically, we confirmed it in our closing Q, we’re going to display it on this Q, you understand, for 100-basis-point transfer in a parallel shift, we are searching at almost certainly a unfavorable $1.6 billion or so. However essential to indicate that the U.S. buck element of this is just a couple hundred million greenbacks.

In a similar fashion, if charges moved in the wrong way, sure of 100, there’d be a — a small motion because it pertains to U.S. buck publicity. So, our U.S. buck publicity is reasonably impartial, once more, assuming a static steadiness sheet, a parallel shift within the curve. And — and so, you understand, we are roughly impartial relative to — to charges shifting in both route and — and subsequently the have an effect on there.

Ryan KennyMorgan Stanley — Analyst

Then there may be numerous optimism and debate round capital markets rebound. Are you seeing that? And are you able to assist us replace us on funding banking pipeline throughout M&A, ECM, DCM?

Jane FraserLeader Govt Officer

Yeah. we are for sure — we for sure had a a lot more optimistic marketplace atmosphere on the finish of ’23, rate of interest spreads and volatility at lows of the yr, fairness costs are excessive. And I believe we view this as a useful basis for process to boost up in ’24, assuming the — the tailwinds persist. And talking of our personal pipeline, the breadth, the intensity, the standard of it is very sound.

It is increased than it used to be pre-COVID. So, when markets are optimistic, we predict to transport those alternatives ahead. And we are listening to much more self belief from the CEOs, CFOs, round this. And after we’re searching at our personal facet, as you understand, we have been making an investment in some increased development spaces, so we get a excellent steadiness between our historically robust sectors in addition to high-growth spaces. And we have been seeing some excellent momentum in healthcare and era, in addition to spaces of conventional power comparable to power and industrials. And I believe we really feel very assured within the restoration in DCM, the beginnings of 1 in [Inaudible].

And so, you understand, cautiously — cautiously positive right here. I am not — I would not say that it is going to boost up vastly and — and with improbable velocity, however I believe we are feeling a lot better in regards to the basis. Mark, anything else you would upload?

Mark MasonLeader Monetary Officer

I’d agree.

Jane FraserLeader Govt Officer

Yep.

Operator

Our subsequent query comes from Scott Siefers with Piper Sandler. Your line is now open.

Scott SiefersPiper Sandler — Analyst

Afternoon, everyone. Thank you for taking the query. Have you ever all assumed any profit attrition simply associated with the aid in pressure? And I assume simply widely, how may that be embedded within the — the ’24 profit steerage? And I assume simply at a best point, possibly only a idea or two on —

Jane FraserLeader Govt Officer

Oh, sorry, I did not — I did not listen what it used to be. I believe the telephone line reduce out. The profit in attrition?

Scott SiefersPiper Sandler — Analyst

Sorry. Yeah, simply — simply curious if in case you have assumed any profit attrition associated with the aid in pressure over the approaching yr.

Jane FraserLeader Govt Officer

OK.

Scott SiefersPiper Sandler — Analyst

You realize, how that embedded within the steerage.

Jane FraserLeader Govt Officer

No — no, we’ve not. I believe numerous — numerous the strikes that we have — we have made out of the group simplification. So, the — the 5,000 or so roles we mentioned, they are principally managerial roles, and they have got made — impacted the purposes and the geographies, now not — now not just about as a lot the — the profit from — profit turbines. And the opposite items with the customer group, we are if truth be told striking a lot more time into the palms of our other folks to force profit ahead.

So, I believe what we are searching at here’s — is eliminating spaces of paperwork and the place we have been too sophisticated, the place we will be able to force potency whilst maintaining our entrance line and inspiring them to be as profit productive and turning in the complete pressure of the company to the customer. So, I might like to look the other, if truth be told.

Scott SiefersPiper Sandler — Analyst

OK. Very best. Thanks. After which — then, Mark, may you speak about for a 2nd, possibly simply widely, the glide of bills during the yr? I do know that they must start to decline towards the tip, however you understand, what — what occurs between every now and then? Do they cling roughly roughly flattish with a core price, or would there be any customary route of industrial development?

Mark MasonLeader Monetary Officer

I believe what I might say is that you just must be expecting that, within the first quarter, we would most probably see an uptick in our general bills relative to the fourth, partly as a result of, as Jane has discussed, we watch for that there will be extra to the org simplification and subsequently greenbacks related to that during in Q1. After which, from there, I’d be expecting that you would see a downward development during the fourth quarter.

Scott SiefersPiper Sandler — Analyst

Very best. All proper. Thanks.

Mark MasonLeader Monetary Officer

Yep.

Operator

[Operator instructions] Our subsequent query will come from Vivek Juneja with J.P. Morgan. Your line is now open.

Vivek JunejaJPMorgan Chase and Corporate — Analyst

Hello, Jane. Hello, Mark.

Jane FraserLeader Govt Officer

Hello, Vivek.

Vivek JunejaJPMorgan Chase and Corporate — Analyst

Simply a few fast clarifications. To your NII information, you mentioned your assuming 3 to 6 cuts. That is U.S., I presume. So, are you assuming flat, unchanged charges outdoor the U.S.

since — with extra sensitivity outdoor?

Mark MasonLeader Monetary Officer

Modest declines outdoor, however sure, declines outdoor as effectively, however now not just about on the magnitude of what we are speaking about within the U.S.

Vivek JunejaJPMorgan Chase and Corporate — Analyst

OK. After which, Jane, in your level in regards to the 20,000 headcount cuts, and I heard you simply discussed 5,000 from managerial positions, the place are the remaining 15,000 coming then?

Jane FraserLeader Govt Officer

Neatly, let me simply — so, let me simply be transparent about the place — the place those that we have — we have simply accomplished and that we are running on during the group simplification. So, after I take into accounts that effort, it’ll shut on the finish of the primary quarter, as we mentioned. We are anticipating to get about $1 billion of run-rate saves from — from the org simplification paintings by myself. That constitutes about 5,000 heads. We are as regards to to, on the finish of this month, completed section 3, which is able to imply the primary 4 layers of the group had been addressed.

That is been a web aid of about 1,500 managers out of a complete of 12,000 roles. That is about 13%. And those are principally supervisor roles, as I mentioned previous. Then after we take into accounts the place are different expense alternatives on best of this, as Mark used to be speaking about previous, the stranded prices, we’re going to be finishing the — the removing of the stranded prices from the divestitures and shall be proceeding.

And you could have observed us been doing that, axing marginal companies and leisure pursuits and the like and being very disciplined about that. We have now were given some companies the place we really feel we wish to rightsize the core expense base. Andy Sieg goes to be kicking off that during wealth, and you’ll start to see probably the most have an effect on of that within the first quarter. He is off to a powerful get started. After which, we have were given others the place we’re going to be growing extra utilities.

We have now were given nonetheless were given other fragmented actions around the company that the group simplification has highlighted. We’re going to be aggregating the ones, growing utilities or consolidating a few of the ones other purposes. And that’s on — prior to we get to — starting to get advantages from the transformation, the place there will be efficiencies that come thru. We’re going to nonetheless have spaces that we are making an investment.

Those are going to be, as we mentioned, core enterprise investments. It’ll be expense development. And the — the highest within the — from quantity development that we have. And we will be able to be making an investment in our transformation.

And all of this is occurring over the medium time period, to get us to the 11% to twelve% RoTCE goal we mentioned. So, that 20,000 is — it is the quantity that we estimate of the headcount. It is — I do not love fascinated by headcount; I take into accounts bills. I believe it is a extra significant quantity. So, as Mark specified by his presentation, you understand, we have were given a web expense price that we are anticipating to reach within the medium time period.

And those are the raft of various spaces that shall be contributing to it. And we are running laborious at it.

Operator

Our subsequent query will come from Steven Chubak with Wolfe Analysis. Your line is now open.

Steven ChubakWolfe Analysis — Analyst

Hello. Thank you for taking my questions. Truly some ticky-tacky modeling questions at the profit facet. Does the profit steerage for the complete yr come with any aid in bank card overdue charges? And the way huge of a contributor is that to revenues total to the — Europe?

Mark MasonLeader Monetary Officer

So, let’s examine. So, clearly, you understand, the proposals in the market, and we have factored in, you understand, what is knowable because it pertains to that. We have not given steerage externally on what that have an effect on is, however we do consider there are, you understand, offsets and mitigates that — that, through the years, we’re going to be capable to roughly convey into play. And so, together with the best way of claiming our profit forecast does think some elementary point of — of overdue commission adjustment.

Steven ChubakWolfe Analysis — Analyst

Were given it. And simply at the previous feedback you made, Mark, round services and products and NII, I’m suffering to reconcile the 50-50 NII contribution from price and quantity parts, simply given moderate mortgage and deposits have been necessarily flat yr on yr, NII grew 3 billion. It does suggest a far greater contribution from charges, however I do know there may be deposit fund switch pricing and different noise. So, I used to be hoping you’ll possibly unpack that just a little bit additional.

Mark MasonLeader Monetary Officer

I imply, there are numerous elements in there. You realize, there may be clearly as effectively the combo because it pertains to what we now have within the U.S. as opposed to outdoor of the U.S. So, it is — there are a variety of things there and almost certainly an excessive amount of to roughly take you thru at the name right here, however we are glad to roughly persist with up with you offline and take you thru it.

Operator

Our ultimate query comes from Mike Mayo with Wells Fargo. Your line is now open.

Mike MayoWells Fargo Securities — Analyst

Yeah, only a rationalization. While you mentioned medium time period on this name because it pertains to worker discounts, expense financial savings, profit objectives, and 11% to twelve% RoTCE, does medium time period imply by way of 2026, or does it imply one thing other?

Mark MasonLeader Monetary Officer

Yeah, it is —

Jane FraserLeader Govt Officer

It is 2026.

Mark MasonLeader Monetary Officer

Yeah.

Jane FraserLeader Govt Officer

2026, yep.

Mike MayoWells Fargo Securities — Analyst

Alright. Thank you, guys.

Jane FraserLeader Govt Officer

Thanks, Mike.

Operator

There aren’t any additional questions. I will be able to flip the decision over to Jen Landis for ultimate remarks.

Jen LandisHead of Investor Members of the family

Thanks, everybody, for becoming a member of the decision. You probably have any follow-up questions, please touch IR. Have a perfect day. Thanks.

Operator

[Operator signoff]

Length: 0 mins

Name individuals:

Jen LandisHead of Investor Members of the family

Jane FraserLeader Govt Officer

Mark MasonLeader Monetary Officer

Mike MayoWells Fargo Securities — Analyst

Glenn SchorrEvercore ISI — Analyst

John McDonaldIndependent Analysis — Analyst

Jim MitchellSeaport International Securities — Analyst

Ebrahim PoonawalaFinancial institution of The us Merrill Lynch — Analyst

Gerard CassidyRBC Capital Markets — Analyst

Erika NajarianUBS — Analyst

Matt O’ConnorDeutsche Financial institution — Analyst

Ryan KennyMorgan Stanley — Analyst

Scott SiefersPiper Sandler — Analyst

Vivek JunejaJPMorgan Chase and Corporate — Analyst

Steven ChubakWolfe Analysis — Analyst

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