citigroup (c) earnings report: q3 2015 conference call transcript · 2015-10-15 · citigroup (c)...

CompanyName:Cit igroupIncCompanyTicker:CSector:FinancialIndustry:Banking

EventDescription:Q32015EarningsCallMarketCapasofEventDate:154.13BPriceasofEventDate:52.97

Citigroup(C)EarningsReport:Q32015ConferenceCallTranscriptThefollowingCitigroupconferencecalltookplaceonOctober15,2015,11:00AMET.Thisisatranscriptofthatearningscall:

CompanyPart icipants

SusanKendall;CitigroupInc;HeadofIRMikeCorbat;CitigroupInc;CEOJohnGerspach;CitigroupInc;CFO

OtherPart icipants

JimMitchell;BuckinghamResearchGroup;AnalystGlennSchorr;EvercoreISI;AnalystMattO 'Connor;DeutscheBank;AnalystBrennanHawken;UBS;AnalystJohnMcDonald;Bernstein;AnalystMikeMayo;CLSALimited;AnalystGerardCassidy;RBCCapitalMarkets;AnalystErikaNajarian;BankofAmericaMerrillLynch;AnalystKenUsdin;JefferiesLLC;AnalystStevenChubak;NomuraSecuritiesCo.,Ltd.;AnalystBetsyGraseck;MorganStanley;AnalystMattBurnell;WellsFargoSecurities,LLC;AnalystBrianKleinhanzl;KBW;AnalystEricWasserstrom;GuggenheimSecurities;Analyst

MANAGEMENTDISCUSSIONSECTION

Operator :

HelloandwelcometoCiti'sthirdquarter2015earningsreviewwithChiefExecutiveOfficer,MikeCorbat,andChiefFinancialOfficer,JohnGerspach.Today'scallwillbehostedbySusanKendall,HeadofCitiInvestorRelations.Weaskthatyoupleaseholdallquestionsuntilthecompletionoftheformalremarksatwhichtimeyouwillbegiveninstructionsforthequestion-and-answersession.

Alsoasareminder,thisconferenceisbeingrecordedtoday.Ifyouhaveanyobjections,pleasedisconnectatthistime.Ms.Kendall,youmaybegin.

SusanKendall(HeadofIR):

Thankyou,[Regina].Goodmorningandthankyouallforjoiningus.

Onourcalltoday,ourCEOMikeCorbatwillspeakfirst;thenJohnGerspach,ourCFO,willtakeyouthroughtheearningspresentation,whichisavailableonourWebsite,Citigroup.com.Afterwards,wewillbehappytotakequestions.

Beforewegetstarted,Iwouldliketoremindyouthattoday'spresentationmaycontainforward-looking

statements,whicharebasedonManagement'scurrentexpectationsandaresubjecttouncertaintyandchangesincircumstances.Actualresultsandcapitalofotherfinancialconditionmaydiffermateriallyfromthesestatementsduetoavarietyoffactors,includingtheprecautionarystatementsreferencedinourdiscussiontodayandthoseincludedinourSECfilings,including,withoutlimitationtheRiskFactorssectionofour2014Form10-K.Withthatsaid,letmeturnitovertoMike.

MikeCorbat (CEO):

Thankyou,Susan.Goodmorning,everyone.Earliertoday,wereportedearningsof$4.2billionforthethirdquarterof2015,or$1.31pershare,excludingtheimpactofCVAandDVA.Thequarterhadmorethanitsfairshareofvolatilityandourresultsspeaktotheresilienceofourfranchiseglobally.Despitetherevenueheadwinds,weonceagainprovedourabilitytomanageourexpensesandweremainontracktodeliverourfull-yearefficiencyandreturnonassettargets.

Ifeelgoodaboutthequalityandconsistencyoftheearningsthatwe'vedemonstratedthroughthecourseoftheyearandwe'vealsomadestrongprogressagainstourothercorepriorities.We'veachievedbothpositiveoperatingleverageandcontinuedloananddepositgrowthinourcoreCiticorpbusinesses.WecontinuedtoimprovethequalityofourbalancesheetbyreplacinglegacyassetsfromCitiHoldingswithhigh-qualityloansinCiticorp.

CitiHoldingswasprofitableagainthisquarter.Holdingsassetsdeclined20%onayear-over-year-endbasisandwillendat$110billionforthequarter,whichrepresentsonly6%ofCitigroup'sbalancesheet.Weexpecttocloseanadditional$31billionofassetsalesduringthefourthquarter.

Weutilizedanadditional$700millionindeferredtaxassetsthisquarter,bringingthetotalutilizationto$2.1billionthroughthethirdquarter,whichhascontributed$3.5billiontoourregulatorycapital.Intotal,wegenerated$14billionofregulatorycapitalsofarthisyearandhavebeenabletoreturnover$4billionofthatcapitaltoourshareholdersintheformofsharebuybacksandcommondividends.

Wegrewourtangiblebookvaluetoover$60pershareandourcommonequityTier1capitalratioincreasedto11.6%onafullyimplementedbasis.Withonequartertogo,we'reontracktohitourfinancialtargetsinreturnofassetsandourefficiencyratio,andwealsoearneda10%returnontangiblecommonequitysofarthisyear.

Turningtotheresultsofourbusinesses.WhiletheuncertainenvironmentclearlydampenedclientactivityinourMarketsproducts,wemadegoodprogressinotherareas,withrevenuegrowthinTreasuryandTradeSolutions,SecuritiesServicesandthePrivateBank,equitiesalsogrew.

Whileourtotalfixedincomerevenueswereunderpressure,wesawcontinuedstrengthinouremergingmarketfranchise.WehavealsocontinuedtoseemomentuminM&Ayear-to-dateasaresultofinvestmentswe'vemadeinthatbusiness.Internationally,ourConsumerBankingbusinesswasalsoimpactedbyslowinggrowthandshiftingconsumersentiment,mostnotablyinAsia.

IntheUS,ourretailfranchisecontinuedtogrowrevenues,loans,anddeposits,evenaswecontinuedtosharpenthefocusofourbranchfootprint.Inbrandedcards,we'reseeinggrowthinactiveaccountsandpurchasesales,althoughit'sgoingtotakesometimeforthefullbenefitofourinvestmentsinthisbusinesstobereflectedinourresults.

Aswelooktotheendoftheyear,westilldon'thaveclarityonmanyimportantissues.Predictionsonthetimingofaninterestrateincreaseseemtochangeeveryday.Wedon'tyetknowthelong-termimpactofrecentvolatilityonconsumerandbusinesssentiment,andinmanylargemarkets,therearehighdegreesofpoliticalrisk,whichhaveeconomicramifications.

Thisquartershowedthatwe'rewell-equippedtohandlewhattheworldthrowsourway,whetherit'smanagingourrisk,ourexpenses,orourcapital.Challengingenvironmentshavebecomethenormandtheworkwe'vedonetomakeourFirmsimpler,smaller,safer,andstrongerhasgivenusaresilientandsturdyplatformfromwhichtooperate.Johnwillnowgothroughthedeckandthenwewouldbehappytotakeyourquestions.John?

JohnGerspach (CFO):

Thankyou,Mike,andgoodmorning,everyone.Startingonslide3,wehighlighttheimpactofCVA/DVAonourreportedresults.Excludingthisitem,weearned$1.31pershareintherecentquartercomparedto$0.95inthethirdquarterof2014.

Onslide4weshowedtotalCitigroupresults.Inthethirdquarter,weearned$4.2billion,generatingareturnonassetsof91basispoints,andareturnontangiblecommonequityof8.9%.Revenuesof$18.5billionweredown8%fromlastyear,mostlyreflectingtheimpactofforeignexchangetranslation.

Inconstantdollars,revenuesdeclined2%year-over-year,astheslightimprovementinCiticorpwasmorethanoffsetbylowerrevenuesinCitiHoldings.Expensesdeclined18%year-over-year,drivenbylowerlegalandrepositioningcharges,aswellasthebenefitfromFXtranslation.Netcreditlossescontinuedtoimprove,offsetbyasignificantlylowernetloanlossreserverelease.

Turningtothefirstninemonthsof2015,thetotalefficiencyratioforCitigroup,includingCitiHoldings,was[56.5%].Netincomegrewby22%year-over-year.WegeneratedanROAof99basispointsandourreturnontangiblecommonequitywas10%.

Inconstantdollars,Citigroupendofperiodloansdeclined1%year-over-yearto$622billion,as5%growthinCiticorpwasmorethanoffsetbythecontinuedwind-downofCitiHoldings.Depositswereflatversuslastyearat$904billion,alsoreflecting4%growthinCiticorp,offsetbyadeclineinCitiHoldings.

Onslide5,weprovidemoredetailonthirdquarterrevenuesinconstantdollars.Citicorprevenueswereupslightlyyear-over-yearandCitiHoldingsrevenuesdeclinedbynearly30%,mostlyreflectinghighergainsonassetsalesintheprioryear,includingtheimpactofsellingourconsumeroperationsinSpainandGreece.OnSlide6,weshowmoredetailonexpensesinconstantdollars.

Citicorpexpensesweredown13%year-over-year,drivenbysignificantlylowerlegalandrepositioningcosts,andCitiHoldingsexpensesalsodeclinedonlowerassets.OnSlide7,weshowthesplitbetweenCiticorpandCitiHoldings.Year-to-date,Citicorphascontributedover97%ofournetincome,whileCitiHoldings,althoughprofitable,hashadalimitedimpactontotalearnings.

AsIjustdescribed,wegeneratedpositiveoperatingleverageagainthisquarterinCiticorp,withrevenuesupslightlyandexpensesdown13%inconstantdollars.Forthefirstninemonthsof2015,weachievedaCiticorpefficiencyratioof55.4%.CitiHoldingsremainedprofitablethisquarterandendedtheperiodwith$110billionofassets.

OnSlide8,weshowresultsforinternationalconsumerbankinginconstantdollars.Intotal,internationalconsumerbankingrevenuesgrew2%year-over-year.InLatinAmerica,excludingagainofapproximately$180millionthisquarteronthesaleofourmerchantacquiringbusinessinMexico,revenueswereroughlyflatversuslastyear,asamodestincreaseinloananddepositbalanceswasoffsetbycontinuedspreadcompression.

HardloanbalancesinMexicoremainedunderpressurethisquarter,reflectingbothslowereconomicgrowthandongoingshiftsinconsumerbehavior;however,wewereabletooffsetthisimpactwithgrowthinpersonalloansandotherretailbankingproducts.Overall,wearemaintainingastrongshareof

consumerloansanddepositsinMexico,andimportantly,creditcontinuestoperformwell,whichI'lldiscussmoreinamoment.

TurningtoAsia,consumerrevenuesdeclined6%year-over-year,drivenbylowerinvestmentsalesrevenues,aswellascontinuedhighpaymentratesandongoingregulatorypressuresincards.Wesawanindustry-wideslowdowninactivityinAsiaduringthequarter,reflectingchangesinconsumersentiment,drivenbyslowingeconomicgrowthandtherecentvolatilityinthecapitalmarkets.

Inretailbanking,wecontinuedtoseeyear-over-yearrevenuegrowthinlending,insurance,anddepositproducts.However,thiswasmorethanoffsetbylowerinvestmentsalesrevenue.Incards,wesawslowerthanexpectedgrowthinpurchasesalesthisquarter.

Cardloansstillgrewmodestlyyear-over-year,butthisgrowthwasmutedbytheimpactofcontinuedhighpaymentrates,andregulatorychangesremainedaheadwind,aswell,althoughwecontinuetobelievethiswillabatesomewhataswegoforward.Intotal,averageinternationalloansgrew3%fromlastyear,carpurchasesalesgrew5%,andaveragedepositsgrew4%.

Operatingexpensesgrew1%ashigherregulatoryandcompliancecostsandtechnologyinvestmentsweremostlyoffsetbylowerlegalandrepositioningcosts,aswellasongoingefficiencysavings.Creditcostsincreased7%fromlastyear,drivenbyaloanlossreservebuildinLatinAmerica.OurNCLanddelinquencyratescontinuedtoimprovethisquarterinLatinAmerica.

However,giventhemacroeconomicenvironment,wedidbuildanotherloanlossreserves,inparticular,inBrazil.WehavetakenacautiousapproachinBrazilforseveralyearsnow,includingthesaleofourmassmarketcreditcardbusiness,Credicard,inlate2013.Atlessthan$3billion,theBrazilconsumerportfolionowrepresentsjust1%ofourglobalconsumerloansandwedonotexpectittohaveamaterialimpactonourtotalconsumercostofcreditaswelookforward.

showstheresultsforNorthAmericaconsumerbanking.Totalrevenuesdeclined4%year-over-yearandwereflatsequentially.Retailbankingrevenuesof$1.3billiongrew3%fromlastyear,ascontinuedloananddepositgrowthandimproveddepositspreadswerepartiallyoffsetbytheimpactofa$50millionmortgagerepurchasereservereleaseintheprioryear.

InBrandedCards,revenuesof$1.9billionweredown9%fromlastyear,drivenbyamodestdeclineinaverageloansandanincreaseinacquisitionandrewardscostsaswehavecontinuedtorampupnewaccountacquisitionsinourcoreproducts.Wefeelconfidentthatwenowhavetherightproductstodrivehighqualityaccountgrowth.

Weexpecttheinvestmentswearemakingtodaytogeneratehighernetinterestrevenueovertimeasgrowthinactiveaccounts,bettercustomerengagement,andhigherpurchasesalestranslateintohigherfullratebalances.Wefeelgoodaboutourprogresstodate,withnearly6%year-over-yeargrowthinactiveaccounts,and12%growthinpurchasesalesinourcoreproducts.

Ofcourse,thispathtorevenuegrowthincardswilltakesometimeandthefullbenefitsofouractionsmaynotbecompletelyreflectedinourresultsforperhapsanothertwoyearsaswebuildnewloanstooffsetthecontinuedrun-offinourlegacyproducts.Intheinterim,wewillbenefitfrominorganicgrowthnextyearwiththeacquisitionoftheCostcoportfolio.

Finally,turningtoretailservices,revenuesdeclined2%fromlastyear,reflectingthecontinuedimpactoflowerfuelprices,aswellashighercontractualpartnerpayments,aswecontinuedtosharesomeofthebenefitsofhigheryieldsandlowernetcreditlosseswithourretailpartners.Excludingtheimpactofloanlossreserves,pre-taxincomegrew7%inretailservices.

Totalexpensesof$2.3billioninNorthAmericadeclined6%asincrementalinvestmentsweremorethanoffsetbylowerrepositioningcostsandongoingefficiencysavings,aswehavecontinuedtocapturescalebenefitsandcardsandrationalizeourbranchfootprint.Sincethebeginningof2014,wehaveclosedorsoldover200branchesandplantoexitroughly50morebytheendofthefirstquarterof2016,includingourBostonareabranches.

Withtheseactions,weareconcentratingourpresenceinourmostproductiveurbanmarketsandalsoadjustingourmodeltoreflectasignificantshiftintransactionactivitytodigitalchannels,requiringfewerbranchesandlowerheadcountperbranch.Thisshiftalsoimprovesourabilitytoretaincustomerrelationshipsasthephysicalfootprintchanges.Evenwhenweexitamarketentirely,wehavefoundthatweareabletoretainasignificantportionoftheconsumerdepositsovertime.

showsourglobalconsumercredittrendsinmoredetail.Asiacreditwasstableagainthisquarter,withalossrateofroughly80basispoints.ThelossrateinNorthAmericacontinuedtodeclineto2.2%,andboththeNCLanddelinquencyratesimprovedagainthisquarterinLatinAmerica,drivenbyfavorabletrendsinourMexicocardsportfoliothatweexpecttocontinue.

showstheexpensetrendsforGlobalConsumerBanking.Forthefirstninemonthsoftheyear,thetotalefficiencyratioforGlobalConsumerBankingwas53%,downfrom55%lastyear,andweexpecttheratiotoberoughly53%forthefullyear.

TurningnowtotheInstitutionalClientsGrouponslide12.Revenuesof$8.4billioninthethirdquarterdeclined3%fromlastyear.Totalbankingrevenuesof$4billion,excludingtheimpactofgainsonloanhedges,weredown7%versustheprioryear,mostlyreflectinglowerInvestmentBankingactivity.

TreasuryandTradeSolutionsrevenuesof$1.9billionwereflatyear-over-yearonareportedbasis.Inconstantdollars,TTSrevenuesgrew7%fromlastyear,asgrowthindepositbalancesandspreadsmorethanoffsetadeclineintraderevenues.Thisrepresentstheseventhconsecutivequarterthatwe'vegeneratedbothrevenueandoperatingmargingrowthinTTSonayear-over-yearbasis.

InvestmentBankingrevenuesof$937millionweredown25%fromlastyear.Equityunderwritingrevenuesweredown43%,reflectinglowerindustry-wideactivitythisquarter.Debtunderwritingrevenuesweredown17%,drivenbyhighyieldandleverageloans,productswhereourcoreclientswerelessactivethisquarterthanintheprioryear.

M&Arevenuesweredown24%comparedtoaverystrongquarterlastyear.Year-to-datein2015,wehavecontinuedtogainmomentuminM&A,with16%revenuegrowth,sustainedwalletsharegains,andastrongshareofannouncedvolume.PrivateBankrevenuesof$715milliongrew8%year-over-year,drivenbystronggrowthinmanagedinvestmentsrevenue,aswellashigherloananddepositbalances.

Corporatelendingrevenuesof$403millionweredown9%onareportedbasis.Inconstantdollars,lendingrevenuesdeclined4%fromlastyear,ashighervolumesweremorethanoffsetbylowerspreadsandtheimpactofloansaleactivity.TotalMarketsandSecuritiesServicesrevenueof$4billiondeclined5%year-over-year.

Fixedincomerevenuesof$2.6billionweredown16%,aswesawloweractivitylevelsandalessfavorableenvironmentintherecentquarter,particularlyinsecuritizedproductsandG10FX.TherevenueimpactwasmostsignificantinNorthAmericaandWesternEuropeandwaspartiallyoffsetbystrongperformanceagainthisquarterinouremergingmarketsfranchise,whereourfixedincomerevenuesgrew4%year-over-year.

OurG10ratesbusinesswasroughlyflatyear-over-yearforthequarter,butwedidseesignificantlylowerthanexpectedrevenuesinthebackhalfofSeptember.Turningtoequities,excludingtheimpactof

reversing$140millionofthevaluationadjustmentwerecognizedinthesecondquarter,revenuesincreasedby12%fromlastyear,drivenbygrowthinderivatives,withparticularstrengthinNorthAmericaandAsia.

InSecuritiesServices,revenuesdeclined4%onareportedbasisandwereup7%inconstantdollars,reflectingincreasedactivityandhigherclientbalances.Totaloperatingexpensesof$4.7billiondecreased4%year-over-year,ashigherregulatoryandcompliancecostsweremorethanoffsetbylowercompensationexpenseandtheimpactofFXtranslation.

Totalcreditcostswere$309million,upsequentially,reflectinganetloanlossreservebuildthisquarter,comparedtoanetreleaselastquarter.Inbothquarters,webuiltreservesforenergy-relatedexposures;however,thebuildwasmorethanoffsetlastquarterbyreservereleasesinotherportfolios.Inthethirdquarter,webuiltenergy-relatedreservesofroughly$140millionoraboutone-halfofthetotalICGbuild.

Theremainderwassplitbetweenotherportfoliosandtheimpactofoverallvolumegrowth.Ofcourse,weareworkingcloselywithourclientstomitigatetheriskoflossesactuallybeingrealized.Totalnetcreditlosseswere$34millionthisquarter,andwhilecorporatenon-accrualloansincreasedduringthequarter,morethantwo-thirdsoftheloansweaddedremainperforming.

OnSlide13,weshowexpenseandefficiencytrendsfortheinstitutionalbusiness.Overthelast12months,ourefficiencyratiowas57%,includingover100basispointsattributabletolegalandrepositioningcharges,andourcompratiowas27%.WecontinuetoexpecttoachieveatotalICGefficiencyratiointherangeof55%to56%forthe[full]year2015.

showstheresultsforcorporate/other.Revenueswerehigheryear-over-year,drivenprimarilybygainsondebtbuybacksandexpensesweredown,mainlyreflectinglowerlegalandrelatedcosts.Slide15showsHoldings'assets,whichtotaled$110billionatquarter-end,down20%fromayearago.

WehavecontinuedtomakegreatprogressinwindingdownCitiHoldings,withsignedagreementstosellanadditional$37billionofassets,$31billionofwhichwecurrentlyexpecttocloseinthefourthquarter.Byyear-end,wecurrentlyexpectCitiHoldings'assetstobesomewhereintherangeof$70billionto$75billion.

OnSlide16,weshowCitiHoldingsfinancialresultsforthequarter.Revenuesof$1.4billiondeclined32%fromlastyear,mostlyreflectinglowergainsonassetsales,aswellasdivestitureactivity.Expensesalsodeclined,drivenmainlybythelowerassets,andcostofcreditremainedfavorable,drivenbytheNorthAmericamortgageportfolio,wheretheirtotalNCLrateimprovedto1.2%.

Onslide17,weshowCitigroup'snetinterestrevenueandmargintrends.Thebarsrepresentnetinterestrevenueperdayforeachquarterinconstantdollars,showingaconsistentgrowthtrendyear-over-year,evenasthecontributionfromCitiHoldingshascontinuedtoshrink.Ournetinterestmarginwas294basispointsinthethirdquarter,roughlyinlinewiththepriorquarter,astradingNIMcontinuedtobehigherthanexpected.

Lookingtothefourthquarter,ournetinterestmarginwilldependonanumberoffactors,includingtheleveloftradingNIM,thetimingofexpecteddivestituresinCitiHoldings,andthemagnitudeandtimingofanydebtredemptionactions.Givenallthat,wecurrentlyexpectournetinterestmargininthefourthquartertobeintherangeof285to290basispoints.

Onslide18,weshowourkeycapitalmetricsonafullyimplementedbasis.Duringthequarter,ourCET1capitalratioimprovedto11.6%,drivenbyretainedearningsandDTAutilization,evenaswereturn$2.1billiontoshareholdersintheformofsharebuybacksandcommondividends.Oursupplementaryleverageratioimprovedto6.8%andourtangiblebookvaluegrewtoover$60pershare.

Insummary,wecontinuedtooperatewellinachallengingenvironmentthisquarter,withcontinuedcostdiscipline,significantlylowerlegalandrepositioningcost,andgreatprogresstowardsthewind-downofCitiHoldings.ThreequartersintotheyearwehaveanefficiencyratioinCiticorpof55.4%,aCitigroupROAof99basispoints,andweearnedareturnontangiblecommonequityof10%.

Wecontinuedtoutilizeourdeferredtaxassetsthisquarterandweendedtheperiodwithaverystrongcapitalposition.Wearecertainlyseeingtheimpactofslowerglobalgrowthinmacrouncertaintyonourtop-lineresults,butwefeelgoodaboutourabilitytomanageriskthroughthiscycle.Weareremainingdisciplined(technicaldifficulty)targetclientstrategyandfeelstronglythatfocusingonthesehigher-quality,moreresilientsegmentsistherightstrategyinanyeconomicenvironment.

Lookingtothefourthquarter,inNorthAmericaconsumer,revenueswilllikelyberoughlyflattothethirdquarter.Ininternationalconsumer,weexpectrevenuetobe[flat]toslightlyhigherthanlastyearonaconstantdollarbasis,asweexpectcontinuedmodestvolumegrowth,withAsiarevenuesbeginningtostabilize.

Turningtotheinstitutionalfranchise,wecontinuetoseegoodmomentumacrossTreasuryandTradeSolutions,SecuritiesServicesandthePrivateBank,whichtogethergenerated8%year-over-yearrevenuegrowthinthefirstninemonthsoftheyearinconstantdollars.

InvestmentBankingrevenueswilldependinpartontheoverallmarket,butwecontinuetofeelgoodaboutthestrengthofourfranchise,particularlyinM&A.Finally,inMarkets,weexpectouroverallperformancetoreflectthemarketenvironment,withthegoalofcontinuingtogainwalletsharewithourtargetclients.

InCitiHoldings,thereareaseriesoftransactionsthatwillimpactthefourthquarter.AsInotedearlier,wecurrentlyexpecttocloseroughly$31billionofpreviouslyannouncedassetsales,includingourretailandcardsbusinessesinJapan,andOneMainFinancial.Wewillcontinuewithotherongoingportfoliosalesandwealsoplantoredeemhigh-costdebt.

Aswe'dsaidpreviously,weexpectthenetgainonthesaleofOneMaintoberoughly$1billion,includingthecostofplanneddebtredemptionactions.Inaddition,weexpecttoincurgainsandlossesonothersales,includingsomethatmayberecognizedthroughthecostofcreditline.Weexpecttoseehighertransaction-relatedrepositioningandotherexpenses,aswell.

So,onanetbasis,includingtheimpactofalloftheseothertransaction-relateditems,wewouldnotexpectthefull$1billiongainonOneMaintofalltothebottomline.Finally,fortotalCitigroup,weexpectourcostofcredittoberoughlyflattothethirdquarter,excludinganyimpactfromtheportfoliosalesoutofCitiHoldings.Withthat,MikeandIarehappytotakeanyquestions.

QUESTIONS&ANSWERS

Operator :

(OperatorInstructions)

OurfirstquestionwillcomefromthelineofJimMitchellwithBuckinghamResearch.Pleasegoahead.

JimMitchell(Analyst-BuckinghamResearchGroup):

Hey,goodmorning,guys.Justmaybeonequestion--justtheassetsales,$31billionthisquarter,potentially$37billionintotal,canyouhelpusthinkabouttheimpactoncapitalratioswhenthey'redone?

JohnGerspach (CFO):

Whenwetakealook--IgaveyouwhereIthoughtthatCitiHoldingswouldenduponatotalassetbasis,GAAPassetbasis,fortheendofthequarter.Somewhereinthatrangeof$70billionto$75billionofassets.Sowe'llcertainlyseeareductionbutaswesaidinthepast,inparticular,theJapanretailbusinessisnotriskassetheavy.

Right.

JohnGerspach (CFO):

Soassociatedwiththat$31billionworthofsales,you'relookingatsomethingthatmightberoughlyone-halfofthatinrisk-weightedassets.

Right,okay.That'shelpful.Aswethinkabout,eventhoughthat'snotahugeimpact,youhavethat,yourcapitalratiosexpandedprettysignificantlyoverthepast12months.Iknowthisisnotaneasyquestiontoanswer,butifyoulookatyourcapitalreturnpay-outratioisstillbelowpeers.Withtheimprovementinratiosnowbetterthanmostwithassetssales,doyouthinkyoucangetclosertopeerpay-outratiosnextyearinCCAR,oristhereanythingelseweshouldbethinkingabout?

MikeCorbat (CEO):

Jim,it'sMike.I'danswerthatacoupleways.Oneis,aslongasthestockcontinuestotradebelowtangiblebook,ourprimaryactionsaregoingtobefocusedonsharebuybackratherthandedicatingthatrightnowtowardsdividend.

Again,asourcapitalnumbersspeak,we'vehadanotherstrongquarter,we'vehadastrongyear-to-dateintermsofcapitalgenerationandwe'vegottopositiontheFirmovertimeto[bebringing]thatcapitalbackoversimplycreatingourowndenominatorproblem.Sowe'refocusedonit.Wedon'tknowCCARscenarios,wedon'tknowalltheprocessesyet,butagainwe'reveryfocusedonit.

Okay,fairenough.I'llstopthere,thanks.

Operator :

YournextquestioncomesfromthelineofGlennSchorrwithEvercoreISI.Pleasegoahead.

GlennSchorr (Analyst-EvercoreISI):

Hi,thanksverymuch.Iwantedtostartwithcreditandenergy,specifically.Theperformanceoverallhasbeengreat.IhearyourcommentsandI'veheardpastcommentsaboutmostlyinvestmentgrade,largelylargecorporate.I'msittingbackandIlistentoourenergyteam,andtheytalkaboutthedeathanddestructionintheoilpatch.

AndIseethelargenumbersthatlargebankslikeyourshave,andI'mtryingtosquarethecirclethere,andsaywhyshouldwefeelgoodaboutfuturereservesorcurrentreservesontheenergybook?Solet'sjustrevisitthewhywetakecomfortinyourexposuresandthenmaybeyoucouldhelpwithtalkingthroughwhatyoudohavereservedorwhereyourexposuresare?Iappreciateit,thanks.

JohnGerspach (CFO):

Allright,Glenn.Again,aswe'vesaidinthepast,I'llgiveyouabitofarundown,ourenergy-relatedloans,thetotalexposureremainsaboutconstanttowherewewerelastyear,atabout$60billionworthoftotalenergy-relatedexposure.Thefundedbookhasactuallygonedownslightlyto$21billionduringthequarterandthebookdoesremainprimarilyinvestmentgrade.

Wehavehadsomedowngrades.We'vealsotakenonsomenewbusiness,whichinthismarket,youcanimagine,isnotnecessarilyatthesamehighlevel.Buttheoverallbookremainstwo-thirdsinvestmentgrade,downalittlebitfrom--thefundedbookremainstwo-thirdsinvestmentgrade.Theoverallexposureisstillabout80%investmentgrade,sowefeelverygoodaboutthecreditquality.

Havingsaidthat,wecontinuetoworkwithourclients.Wehavebeenbuildingreservesbecauseitcertainlyisprudentinthisenvironment.Wetoldyouthatwetook$140millionofreservesthisquarter.That'sroughlyequaltowhatwetookduringthefirsthalfoftheyear.Wetookabout$100millioninthefirstquarter,$40millioninthesecond.Sothisissomethingthatwe'relookingateverydayandwe'readjustingtheprovisionsaccordingly.

Butitstillremainsaveryhigh-qualitybookandnotonethatisnecessarilydramaticallydependentonthespecificpriceofoil.Again,ourexposuretowhatyouwouldconsidertobeclosetothewellheadstillremainsfairlysmall.Itwasroughlyconstantaboutafundedbookofabout$6billion,andwe'veworkedourwaythroughalotofthereconsiderationeventsoftakingalookatreservelevels,soagainallIcansayisthatit'ssomethingwe'relookingatandit'ssomethingthatwestillfeelreallygoodabout.

Okaythat'salwayshelpful.OneotherquestionIhadisjustmorehighlevelofwhichwaysdoweseeyourSLRpremiumratioasanadvantage.There'salotofdownsizinginEurope,there'salotofpeopletryingtooptimizetheirownbalancesheets.Wherecanweseethatplayingtheroleasapositivetohelpyoubringonbooksofbusinessandjustbebasicallythehighbid?

JohnGerspach (CFO):

Well,wedon'talwayswanttobethehighestbidthere.Weliketogetbusinessatareasonableprice,butyou'reright,wedohaveacertainadvantagewiththeSLRratioandwefeelthatwe'reusingthatappropriately.OfcourseSLRisoneratio.Youalsohavetotakeintoaccountwhatwe'redoingonalloftheotherratios.

But,forinstance,thestrengththatwe'vegotonourSLRratiohasenabledustopursuealittlebitmoregrowthintheprimebrokeragearea.Weseethatasawayofgettingadditionalpenetrationintosomeofourkeyinvestorclients.Soagain,we'reusingitwhereappropriate,buteverythingthatwedoiscarefullythoughtoutonseveralplains,asyoucanimagine.

Yes,Iappreciatethat.Okaythankyou.

JohnGerspach (CFO):

Notaproblem.

Operator :

YournextquestioncomesfromthelineofMattO 'ConnorwithDeutscheBank.Pleasegoahead.

MattO'Connor (Analyst-DeutscheBank):

Hi.CanyoujustelaborateabitonwhytheNIMwillbedown5to10basispoints,whattheassumedtimingoftheOneMainandbalancesheetrestructuringispartofthat?

JohnGerspach (CFO):

WhyNIMwas--I'msorry,Matt,I--?

I'msorry,theoutlookforQ4isforthenetinterestmarginpercenttobedown5to10basispoints,andthere'sobviouslyalotofmovingpiecesthat'sgoingtoimpactthat,buthowdowethinkaboutcoreNIMoverlayingtheimpactofOneMain,thedebtrestructuring?I'mtryingtofigureoutifit'sdownthatmuchbecauseofthosetransactionsoristhatdownthatmuchonacorebasis?

JohnGerspach (CFO):

No,whatwe'vesaidinthepast,Matt,isthatboththeJapanretailbusiness,aswellasOneMain,arehighNIM-producingbusinesses.SothosearehighNIM-producingbusinesses,andasweshedthosebusinesses,that'sgoingtohaveanimpactonourNIMandtakeitdownseveralbasispoints.Ican'tremembertheexactnumberthatwegaveyoulastquarter.

Unfortunately,Ican'tpredictthetimingofthesales,whentheywilloccurinthefourthquarter.SothefourthquarterisgoingtobesomewhatofatransitionquarterregardingNIM,whichiswhyI'mgivingyouarangeof285to290.Onceweclosethefourthquarter,we'llbeabletogiveyoubetterguidanceastohowNIMwillprogressinthefuture.

Including,don'tforgetwe'llbebringingontheCostcoportfoliointhesecondquarterofnextyear,sothatwillgiveustheabilitytorecaptureaportionofthatNIMthatwe'relosingthroughtheOneMainsale.We'llalsomakesomeofitbackthroughdebtbuybacks,etcetera.ButIapologize,thefourthquarterisgoingtobealittlebitnoisyfromaNIMpointofview,andit'sreallygoingtobedependentuponthetimingofallofthoseactions.

Soaswethinkabouttheexitlevelofthisyearofthenetinterestmargin,essentiallyagood1Q2016level,justholdingrates,holdingmix,andholdingallofthatsteady,howwouldthatNIMcomparetothecurrentthirdquarterNIMorwhatyou'reexpectingin4Q?

JohnGerspach (CFO):

Again,Matt,I'llbeinamuchbetterpositiontogiveyouthattypeofguidance,andwewillgiveyouthattypeofguidancewhenwegetfinishedwiththefourthquarterandIknowwhenthesesaleshaveclosedandwhatimpacttheywillthenhaveonourreportedNIM.

Okay.Thenjustseparately,theCostcodealyoumentioned,theportfoliocomingoninthesecondquarter,hasthatbeenfinalizedintermsofpricingandeverything?

JohnGerspach (CFO):

No,itstillhasn'tbeenfinalizedyet.Obviously,we'restillinaprocess.We'reworkingthroughaprocesswithAMEXandwithCostcoandwithVisa,allbeingguidedbythetermsofthecontractthatexistcurrentlybetweenAMEXandCostcoandthat'sreallyallIcansayaboutthat.

Okay,allright,thankyou.

Operator :

YournextquestioncomesfromthelineofBrennanHawkenwithUBS.Pleasegoahead.

BrennanHawken (Analyst-UBS):

Hi.Goodmorning.JustfollowingupontheHoldingsquestions,inthesaleofassetsthatyouexpecttoclosehereinthefourthquarter,isthereanupdatedsenseabouthowmuchoftheexpensebaseofHoldingsshouldcomeoutonthebackofthis?

JohnGerspach (CFO):

Wehaven'tgiventhatguidance.We'llgiveyouabettersense.Again,afterthesedealsclose,youcanimaginethatassociatedwithcertainofthesedeals,therearecontinuingtransactionservicearrangements,whereforaperiodoftime,wewillbeinapositionofsupportingthebuyerwiththatbusiness,whichmeansthatwewillretainacertainamountoftheexpensebaseintothefuture,forwhichwewillbepaid.

Soagain,oncewedeterminethetimingofallofthesetransactions,andwefinalizethetermsofthesale,includinganyongoingservicearrangements,IwillbeinamuchbetterpositiontogiveyouguidanceontheimpactontheHoldingsexpensebase.

Okay,thankyou.Thenthinkingaboutanotherexit,butmorerecentlyannounced,Boston,canyougivesomecolormaybeonhowmuchyouthinkthatmightimpacttheNorthAmericanGCBefficiencyratiooranyothermetrics?

JohnGerspach (CFO):

Well,Itoldyouwhereweexpecttoendtheyearwiththeefficiencyratioglobalconsumerandthat'sreallywhatwe'refocusedon.Weintendtoendthereatthe53%,thatwebasicallyhavenow.Wehaven'tgivenanyfutureguidanceonoperatingefficiencyratios.

Butit'ssafetoassumethatinthecurrentenvironment,we'relookingtomaintainthoseefficiencyratiosintherangesthatwehavesaidthatareourtargets.SotheexitofBostonispartofthatoverallconsideration,andsoIwouldn'tthinkaboutitasbeinganymoreaccretivetotheyear-endtargetof53%thatIgaveyouearlier.

No,sure.Iwasreferringtoago-forwardratherthantheyear-end,butletmetryasimilaridea,butmaybeatabroaderscope.You'vemadereferenceinthepasttotheefficiencyratioandtheneedforrevenue,butiftheenvironmentremainsdifficult,doyouhavetheabilitytopullleversandworktheefficiencyratiodownfurtherfromhereorarewegoingtobeinawaitinggameuntiltherevenuescancomethrough?Justhowshouldwethinkaboutthat?

JohnGerspach (CFO):

Well,Idon'twantyoutofeelasthoughyou'reinawaitinggame,butwhatwe'vesaidisthatweintendtooperatethebusinesswithanefficiencyratio.Theefficiencyratiotargetthatwe'veputoutforCiticorp,

andweputthisoutmorethan2.5yearsagonow,whenwewerelookingatwhatwethoughtwouldbeadifficultenvironmentin2015,andtheenvironmenthasactuallyprovedtobeevenmoredifficultthanwethoughtatthatpointintime.

WesaidwecouldoperateoverallCiticorpwithanefficiencyratioofinthemid50%s.That'swhereweare,andgiventhisenvironment,westillfeel--again,wehaven'tworkedourwayallthewaythroughourbudgetconsiderationsandeverythingelse,butinthistypeofenvironment,wethinkthat,that'saprettygoodefficiencyratiotobeoperatingunder.

Ittakesalotofmanagementinthistypeofenvironmenttocontinuetooperateatthatefficiencyratioandstillhaveroomtomaketheinvestmentsthatyouwantustomake,sothatwhentheenvironmentimproves,wecangenerateevenhigherlevelsofrevenuegrowth.Soallofthatistiedupinthoseefficiencyratiotargetsthatwe'veputoutthere.

Okay,lastoneformethen.Ifwethinkaboutyournewcardoffering,howisitthatyouwouldrecommendwemeasuresuccessbaseduponthechange,thenewproductsthatyou'veputout,theretooledoffering.Whatmetricswouldyouguideustolooktoifsomeofthecomponentsoftheenvironmentforrevenueremainchallenging?

JohnGerspach (CFO):

Themetricthatwewillguideyouto,andwe'llbegintogiveyoumoreofthisprobablynextquarter,willbetakingalookatouractiveaccounts.Thatiswherewe'reseeingthebigdifference.Imentionedactiveaccountsareup6%year-over-yearandthat'sabigchangeforus.AsIsaid,wewerestrugglingbeforetomaintainasteadystateofactiveaccountsandsotoseeactiveaccountsup6%thisyearnow,comparedtolastyear,that'saprettysizeablegrowthforus.

Italkedaboutthefactthatacquisitionsonourcoreproductswereup37%onayear-to-datebasis,buthavingthoseacquisitionsisgood.Havingthoseacquisitionsreallytransitionintoactiveaccountsiswhereweneedtobeandthat'sclearlywherewe'vegottentonowandwherewe'regoingtokeepondriving,sowe'llgiveyoumetricsonactiveaccounts.

Thanksforthat,John.

JohnGerspach (CFO):

Notaproblem.

Operator :

YournextquestioncomesfromthelineofJohnMcDonaldwithBernstein.Pleasegoahead.

JohnMcDonald (Analyst-Bernstein):

Thankyou.John,justwonderingonexpenses,theyear-over-yearconstantdollarexpensetrendslookgood,andyou'redown13%year-over-year.It'sharderforustoteaseouthowmuchofthatwasfromlowerlegalandrepositioningcomparedtocoreexpense.Couldyoushedanylightonthat,onhowthecoreexpensestrendonaconstantdollarbasis?

JohnGerspach (CFO):

Coreexpensesareupslightly,andagain,it'sinlinewiththeplansthatwehadgoingintothisyearwhenwethoughtaboutwhatweneededtodoinordertogeneratetheefficiencyratiosthatweweretargeting.Soagain,upslightly,butallincludedintheefficiencyratiotargetthatwegave.

Okay,andasyoulookaheadtothefourthquarter,anythoughtsonthecoreexpenses?Arewegoingtoprobablybeinthesameneighborhood?Arethereanyputsandtakestothinkabout?

JohnGerspach (CFO):

It'sgoingtovarybusinessbybusinessandeverything.Forinstance,insomeofthebusinesses,wherewe'veseensomeoftherevenuechallenges,forinstance,insomeoftheinternationalconsumerbusinesses,youcanimaginethatwe'vealreadybeguntolookatthecoreexpensesthere,andhavebeguntoadjustthetrajectory.Sotheseareallthingsthatwelookat.I'mnotgoingtogiveyouspecificguidanceonexactlywherecoreexpensesisgoingtobe,butagain,whatwe'recommittedtoistodeliveronthatmid50%sefficiencyratioforCiticorp.

Okay,andthenjustaquestionforMike.Followinguponyourcommentsaboutusingexcesscapitalandtryingtoavoidthedenominatorproblem,doyoubecomemoreinterestedintryingtogrowassetsinorganicallyasyourcapitalgrows,andperhapsyougetmorecomfortablewiththeregulatoryrules,whetherit'scardportfoliosorconsumerbooks?Isthatsomethingthatyou'lllookmoreto,intryingtogrowthroughportfolioacquisitions?

MikeCorbat (CEO):

John,we'vebeenopentothoseacquisitions,andwhetheritwasBestBuyorwhetheritwillbeCostco,butallofthoseneedtobeinourtargetedsegments.Youarenotgoingtoseeusgoingout,breakingintonewproductsorthingsthatwedon'tviewtodayasreallybeingcoretowhoweareasafranchise.Whetherthat'sbyclientsegment,orwhetherthat'sbygeographyorindustryorwhateveritmaybe.

Butwe'rewideopentothoseportfolioacquisitions.IftheyhitourROAandourreturnmetricsandwethinkrisk-adjustedtheymakesense,we'llcertainlylookatthem.Butagain,whatwe'vereallytriedtobuildourbusinessmodelaroundisjustreallydrivingourownorganiccoregrowthoffourexistingplatforms.

Okay,thanks.

Operator :

YournextquestioncomesfromthelineofMikeMayowithCLSA.

MikeMayo (Analyst-CLSALimited):

Hiwhenwillwehearaboutnewtargetsfor2016andwhatcanyougiveusapreview?

Unidentif iedCompanyRepresentative :

Sure.Wellfirst,youcanimagineandthisenvironmentwearereallyfocusedondelivering2015andourtargetsaroundthatsoitwillbeissometimeaswegetintotheNewYear.Wehaven'tsetadateastowhenwewilldothat.AsJohnsaidwe'reheadingintobudgetseasonandwe'llbelookingbothat16and

someplanningbeyondthatandIwouldsaythatsomepreviewaroundthatMikeisthatasJohnsaidthatwhenwewentintothesetargetstwoorthreeyearsago,wesaidit'satoughenvironmentanditsprobablystayedtoughortougherbothfromaneconomicorregulatoryoverallbackdropthanwehadeventhoughtatthetime.

Itiscertainlydoesn'tfeellikeit'sgoingtogetawholelotbetterforaperiodoftimesoIwouldn'texpectbigchangestothosetargets.Ourgoalistomanagetheinstitutionwellthroughtheenvironmentwe'reinandbeinapositiontodeliverstrongperformance,strongoperatingleverage,andallofthethingsyouwouldexpectastheenvironmentatsomepointinthefuturestartstoturn.

SohowmuchdoesgettingwhereyouwanttobedependonhigherUSinterestrates?

Wellitiscertainlyhasn'tbeenahelpintermsofwhereweareandwesaidwecouldgetandruntheinstitutiontotheMid50sandasyoulookacrosstheindustry,itleavesusinareasonableposition.We'vetalkedaboutchangesininterestratesandasofnowroughly100basispointsupwardshiftofratestranslatesomewhereintoabout2-2.1ofrevenuewhichwewouldhopewebelievelargelytranslatesintoEBITandsotheirtailwindsthatcancomeoutofsomeofthoseshiftsbutagainaswe'veseenastheFedhascontemplateditsmove,you'dwantthosemovestocomeonthebackdropofaperceptionofeconomicstrengthandifeconomicstrengthisthere,you'dgetthedoubletailwindofnotjusttheratepushbutgetsomestabilityit,yougetsomeMarketstrending,yougetsomeconfidencebackinthemarketthatwouldbewelcomebybothconsumersaswellastheinstitutionsandthecorporates.

Isitfairforustoexpectalittlebithigherreturns?You'resheddingsomenon-coreassets,you'rerepositioningthefirm,youjustannouncedyou'reretreatingsomefromBostonandKoreahaspassedsomeoftherestructuring.Isitfairforustoexpectabitmoreaswelookout?

Alotofthat,Mikedependsontheenvironmentstherebutwhatyoucanexpectisthatwe'regoingtocontinuetocloselymanagetheplaceandwe'regoingtokeepaneyeandManagementhasastrongeyetowardsthetargetsthatwe'veputouttheredeliveringonthoseandcontinuingasIsaidinmyopeningremarks,notjustaroundexpensesbutaroundriskofcapitaltotryandmanagetheplacesmartly.

Andthenlastfollow-up.TheIMFandotherforecastershavereducedtheirgrowthrateforAsiaandthisquartersawsomepullbackinChinaMarketsbuthereyou'resayingonthiscallthatAsiaconsumerisstabilizingsocanyouhelpmewiththatdisconnect?

WhenyoutakealookattheIMF,theyhaveloweredtheirgrowthforecastbuttheyarestillforecastinggrowthandwhenyoutakealookatourAsiaconsumerrevenueswebelievethattheywillstabilize.TheyarestabilizingnowandtheyshouldstabilizegoingintotheFourthQuarterandthenintonextyearsoIdon'tthinkthatthosetwothingsareinconsistent.I'dliketogetmoregrowthoutofAsiabutwiththelowered,witheverybodylivinginalowerGDPenvironment,gettinghighlevelsofgrowthisgoingtobedifficult,evenwiththelevelsthatwe'reseeingnowagainwe'restillgettinggoodengagementonloans,

ondepositssoit'snotthatwearen'tseeingsomelevelsofgrowthevenatthispointintime.

Allrightthankyou.

Operator :

YournextquestioncomesfromthelineofGerardCassidywithRBC.

GerardCassidy(Analyst-RBCCapitalMarkets):

Thankyougoodmorningguys.John,canyousharewithustheCitiHoldingsasyoubringtheassetsdown,youpointedoutthattodaytheassetsrepresentabout6%oftotalassetsand13%ofrisk-weightedassetssoclearlythere'smorecapitalsupportingtotheholdingswhichwe'vealwaysknownabout.Doyouthinkthatwhenyoubringitdowneventuallytozero,willallthatcapitalbefreeduporistheresomeoperationalriskthattheregulatorswillrequireyoutomaybekeepmorecapitalinthereeventhoughtheassetsarenolongerthere?

JohnGerspach (CFO):

Yes,I'dsaythatthatisthemostlikelycaseGerard,sowhenyouthinkaboutCitiHoldings,CitiHoldingsattheendofthequarterhadabout$157billionworthofrisk-weightedassetsattheendoftheThirdQuarter.$157billionofrisk-weightedassetsandinthat157,consistentwithwhatwesaidattheendoftheSecondQuarter,there'sabout$49billionworthofrisk-weightedassetsassociatedwithoperatingriskandIjustdon'tthinkthatwe'regoingtogettoapointwhereevenifweshutholdsdownthatwe'regoingtobeabletorelieveourselvesofthat$49billionofrisk-weightedassets.Sothatmaycomeovertimebutit'sgoingtobetime.Notaquarterortwo,sothatit'sreallyyoureallyneedtolookatthe$108billionthenofcreditandmarketriskassetsthataresupportingCitiHoldingsasreallybeingtheopportunitythatwehavenowforfurthercapitalreductionandaswewinddownthebalanceofCitiHoldings.

Wouldtherebe,thankyoufortheclaritythere.Wouldtherebeanyoperatingexpensesthathavetostickaroundwiththat49billionoftheoperatingriskassetsorwhenCitiHoldingsassetsallgotozerowouldyoustillhavetohavesomeoperatingexpensestosupportthat49billion?

JohnGerspach (CFO):

No,weshouldn't.We'vebeenprettygoodatmakingsurethatweattackanystrandedcostsinholdingsaswe'vegottenridoftheassetssothis49billionisreallyitwillbedrivenbaseduponmodels.Atsomepointintime,wehadbusinessesthatgeneratedoperatingriskeventsandit'sjustgoingtotaketimethentohavethatfadeintothepastandthetimeframeisjustonethatwe'llhavetoworkthroughourownmodelsandthencertainlywithsomeofourregulatoryfriends.

Greatandshiftinggearsonyou,you'dmentionedinyourpreparedremarksaboutcardloansthatgrewmodestlyyear-over-yearbutthegrowthwasmutedbytheimpactofcontinuedhighpaymentratesandregulatorychanges.Theybothremainheadwindbutyouthenwentontosayyouthinkthatregulatorychangestheremightbesomeabatementinthisupcomingyearorwasthatmorejustduetothehighpaymentratesthatyouthinkthatcouldslowdowntohelpthegrowth?

JohnGerspach (CFO):

No,no,thatwouldreferenceandyou'requotingmefromthecommentsthatImadeaboutAsiaspecifically.

Right.

JohnGerspach (CFO):

AndinAsiawehadalmosteverycountryinAsiaimplementsomeversionoftheUScardactduringthepasttwoyearsandsowhatwe'vebeendoingisworkingourwaythroughthoseimpactsontheAsiacardbookwhetherthat'shigherpaymentrates,whetherthat'slowerdebtceilings,itemslikethat,sothathasbeenworkingitswaythroughthebookandwhatwearelookingatnowisthattheimpactofthoseregulationsareabatingbothbecausetherearenotsomanynewregulationscomingnewandalsobecausewearelappingtheimpactofthechangesthatwereputinplaceayearortwoago,sobothofthosefactorsgiveussomeoftheconfidencethatthoseimpactswillbelesseningaswelookforward.

Andthenfinallyoncards.Youmentionedthattherevenuesinbrandedcardswasdownabout9%andthiswasduetotheincreaseinacquisitionandrewardcosts.Howlongdotheylastandisthatprimarilyforwhenyoubuyanewportfoliooristhereanongoingcostaswelljustgoingoutreachingoutfornewcustomers?

Thisisthecostofgrowingaccountsorganically.TwodifferentmodelsasfarasinorganicandorganicgrowthbutwhenyougetintoanorganicgrowthmodelwhichiswherewearerightnowpredominantlywewillgetasImentionedaboostfrominorganicgrowthwehadintheCostcoportfoliosothatwillbeabigplusbutfromanorganicpointofviewthefirstthingwedidwaswehadtorestructuretheproductofferingincardswhichwe'vesuccessfullydoneandwe'vegottenanicebalancenowofnewproductsdealingwithbothavalueproduct,arewardsproduct,thevalueproductwouldbesimplicityandtherewardsproductwouldbethankyou.

We'veintroduceddoublecashgivingusacashbackproductsowe'vegotanicebalancetherebetweencardsthatappealtospendorientedconsumersandrevolveorientedconsumers.We'vegotanicebalanceinourproductportfoliobetweenproprietarycardsandco-brandcards,andnowit'samatterofputtingtheinvestmentdollarsatworktogrowfirstacquirenewaccounts,havethemtransitionintoactivecustomersandthengrowspendandrevolvebehavioroneachoneofthosecardsandsothefirstphasethatyourunintoonceyou'verestructuredisyougetintoarebateandrewardphasewhereasyouaddinthoseaccounts,therewerecertainamountofcoststhatyouincurupfronttoacquiretheaccountcallthoserebateandtheybasicallyhityourrevenuelineaswellasthentherewardscoststhatyoupayastheycontinuetodrivespendearlyonandthatalsoisamutingfactoronyourrevenuelineaswell.

Sooncewegetthroughthatwilleventuallypaceitselfoutandwe'llgofromrebateandrewardsandthenwe'llgetintoarevolvingperiodaswell.

Thankyoufortheclarity.Iappreciateit.

Notaproblem.

Operator :

YournextquestioncomesfromthelineofErikaNajarianwithBankofAmerica.

ErikaNajarian (Analyst-BankofAmericaMerrillLynch):

Hijustonequickfollow-upforme.Theroughly400millionthatyoucalledoutJohninthequarterlyincreaseincorporatenon-accrualsinNorthAmericaandEMEA,whatpercentageofthatincreasequarter-over-quarterwasrelatedtoenergy?

Roughly80%ofthenetaddwasenergyrelated.

ErikaNajarian (Analyst-BankofAmericaMerrillLynch):

Gotit.Thankyou.

Notaproblem.

Operator :

YournextquestioncomesfromthelineofKenUsdinwithJefferies.

KenUsdin (Analyst-JefferiesLLC):

Hithanks.John,justonthedebtbuybackFran,canyouhelpusunderstandjusthowmuchthebenefitwasthisquarterandifthepremiseofdoingmoreinthefutureisalsobakedintoyourexpectationforthefutureNIM?

JohnGerspach (CFO):

TheimpactofthedebtbuybacksisIncorporatedinmy285-290range.Obviously,debtbuybacksyougetacertainbenefitinthequarteronwhichyoudobutit'susuallymoreofaforward-lookingbenefit.DebtbuybacksisjustoneofthetoolsthatweuseasfarasactiveManagementofourlongtermdebtportfolio.Wefindaseriesofdebtthatarejustnotparticularlytradingwellandthatgivesusanopportunitythentobuythatbackandthenusuallyitendsupgivingustheopportunitythentoreissueatabetterrate.

Yesandthatwas,wasthatamodestbenefitthisquarter?

JohnGerspach (CFO):

Wehadcertain,Ican'ttellyouIhaven'tbeenabletoisolateinmyheadanywaytheimpactofdebtbuybacksonthisquartersNIMbutI'msorryitsblendedinwithouroverallcostoffundchugdidcomedown.

Okayunderstood.

JohnGerspach (CFO):

Andthat'ssomethingthat'sgoingtotrickleinovermanymanyquarters.

Gotitsoitsgotmyfollow-upisthatI'dthinkyou'dseeinthecostofdebtontheliabilitysideoftheaveragebalancesheetpagesojustwonderingifhowmuchbenefityoucouldgetfromthatgoingforward?

WellagainalotofthatwilldependonhowMarketsperformandeverythingelse.We'vebeenfairlysuccessfulinthepastofdoingasdealingwithdebtbuybacks.It'ssomethingthatwelooktodo.Ifit'sthereit'sthere.

Okay,gotit.Andthenjustafollow-upquestionontheinternationalconsumerbankingsideandtoyourpointaboutflatyear-over-yearconstantdollarsandyourcommentsabouttheinvestmentsalesflowing.Anysenseifthatinvestmentsalesslowdownwasjustcustomersfreezinggivenwhatwashappeningthisquarterandwhatareyouseeingjustintermsoftheinternationalconsumeractivity,asidefromrevenuesjustintermsofthebehaviorandactivityasyoulookahead?

ActivitylevelwillobviouslyvaryalittlebitregionbyregionbutalotofourWealthManagementBusinessisconcentratedinAsiaandtherejustverymuchtoyourpointwouldweseeintimesofmarketvolatilityandmarketuncertaintyisthatourWealthManagementclientsarenotasactiveasyouwouldimagine.

Theyjustaren'tasactiveinputtingmoreoftheirfundstoworkintheMarketsandthatthereforhasanimpactonourinvestmentsalessoit'salittlebitofmarketsentiment.It'salittlebitofconsumerconfidence.It'sallofthosethings,andasfarashowdoesit,whenwethinkaboutitgoingforward,astheMarketsclearthemselves,aspeoplebecomealittlebitmoreconfidenttheyknowwherethey'regoing,weseethatactivitycomebackbutthiswasaparticularlytoughquarterforhadinvestmentsales.

Okaygotit.Thanksverymuch.

Notaproblem.

Operator :

YournextquestioncomesfromthelineofStevenChubakwith

Nomura.

JohnGerspach (CFO):

Higoodmorning.GoodmorningSteven

StevenChubak(Analyst-NomuraSecuritiesCo.,Ltd.):

JohnIhadaquickquestiononrisk-weightedassetsandjustwantedtoclarifyacouplethingsrelatingtothedisclosureinthepresentationsoitlooksasthoughtheheadlinenumbersdeclinedabout4%yearonyearbutjustlookingatthecapitalimpactdisclosurewhichmaybeareflectionofFXrelatedimpactsitlooksasiftheRWAsonaconstantdollarbasishavebeenrelativelystableandIwantedtogetasenseas

tohowweshouldthinkaboutitin2016wheremaybeyoudon'thavetheoffsetoftheholdingsrun-offandyoustillhavecontinuedcoregrowthinCiticorp,shouldweexpectthoseRWAstobegintotrendonanupwardtrajectory?

JohnGerspach (CFO):

Wellsoletmehelpyou.Letmedealwiththesequentialdeclineinrisk-weightedassets.Soonasequentialbasisrisk-weightedassetsdroppedfromIdon'thavethepageopen,1279to1258.About$21billionandroughlyhalfofthatdeclinewasFXrelated,anddon'tforgetwetakethatintoconsiderationaspartofouroverallcapitalhedgingprogrambecauseourcapitalhedgingprogramisbuiltonaratiohedgesowehedgetoourCET1ratioandsojustasourcapitalinvariouscountrieswillbeimpactedbyfluctuationsinFXrates,wealsoknowthatourrisk-weightedassetsaregoingtobeimpactedbythataswellsoallofthatisbakedintoourcapitalhedgebutthatmeansthatforthequarterweactuallysawanon-FxrelatedreductioninRWAofabout$10billion,sothat'swhat'sbakedintothatnumberandsomeofthatisinholdingsandsomeofthatisinCiticorp.

Ingeneral,againwedoexpecttoseeCitiHoldingscontinuetoreduce.ThatshouldgiveusroomtogrowCiticorp.Wehavenotworkedourwaythroughouroverall2016planasyetsoIcannotgiveyouguidanceastowherewe'regoingtothinkaboutRWAlevelsgoingintonextyearbutwewilltakeallofthatintoaccountaswefinalizethebudgetandasthebudgetgetsfinalizedaroundbothourefficiencytargetsaswellasourROAtargetsandourROTCEtargetsaswell.

Okay,wellthankyouforthedetailthere,Johnandjustwantedtoswitchgearsforamoment.Iappreciatethecolorthatyou'dgivenonBrazilintermsofsomeoftheconsumerexposuresthere.OneofthethingsthatIwashopingyoucangivesomeclarityordetailonisrelatingtocorporateexposurespecificallywhereitlookslikeBrazilisabout5%ofthetotalloanbook,Iknowinthepastthedisclosureyou'vegivensuggeststhatthemajorityofthosecorporatesareactuallybasedinBrazilversusinlieuofotherregionswheremaybeit'spredominantlymulti-nationals.Iwantedtogetasenseastowhatcredittrendslooklikedto,howtheyareperformingandwhetheryoustarttoreserveforanypotentiallosseswithintheinstitutionalsegment.

JohnGerspach (CFO):

Yes,ourBrazilbookisstructuredverysimilaralongthelinesofeveryothercountryinwhichweoperate,whichisthatisabookthatreallyagainfocusesonthoselargemulti-nationalsandagain,it'ssomewhatsimilar.Wetakeallofthatintoaccount.Wecertainlydidn'twaittoseethatisandPdowngradedBrazilbeforewebegantotakealookatsomeofourBrazilbookandbuildtheappropriatereserves,butagainit'stheconsistentstrategy,largemultinationalcorporates,globalinvestors.AttheendoftheThirdQuarter,wehadtotalexposureof14.5orsobilliondollarsinBrazilandmostofthat,75%ofthecorporatelendingbookisasyousaidit'stoBrazilbasedcompaniesandalargeportionofthebookmorethanhalf,wellmorethanhalfit'slike60%,70%isTTSrelatedsoit'straderelatedloanssoyouhaveacombinationofsuredatedsecuredloansonTTS,largemultinationals.I'mnotgoingtotellyouthatthebookwillneverhaveanNCLbutwefeelprettygoodaboutthequalityofthebook.

Excellentandthenjustonemorequickoneforme,John.Apologiesforgettingalittlebitknitpickingherebutitdidsoundasthoughtheguidanceyou'dgivenonthefullyearefficiencyrangeforICGis55-56%.Idobelieveonthelastquartercallyou'dsaidthemidpointofthe53-57%targetrangewouldsuggestmaybesomeupwardpressureontheefficiencyratioandIjustwantedtogetasenseastowhetherthat'sareflectionofrevenuepressures.Iknowthatrevenuesonaconstantdollarbasisaredownabout1%

yearonyearthroughthefirstninemonthsormoreareflectionofwhatyou'reseeingintermsoftheperformancethusfarmaybeyouroutlookaheadofthefourthquarter.

JohnGerspach (CFO):

Yes,thelanguagethatwehadlasttimewasclosertothemidpointasopposedtospecifyingthemidpoint,soyoucanassumethatthisisI'mthinkingthatwearegoingtobeslightlyabovewhereIwouldhavetargetedattheendofthelastquarteranditverymuchreflectstherevenuepressurethatwehave.

OkaywellthanksforclarifyingthatJohn.

MikeCorbat (CEO):

Isaidthatsomewherebetween55and56%comparesreallywellwithourpeers.

Iwouldtendtoagree.Wellthanksfortakingmyquestions.

MikeCorbat (CEO):

Notaproblem.

Operator :

YournextquestioncomesfromthelineofBetsyGraseckwithMorganStanley.

JohnGerspach (CFO):

Higoodmorning.HiBetsy

BetsyGraseck(Analyst-MorganStanley):

Sojustacouplefollow-ups.OneisoncorporatesoIwasgoingtoaskthequestionaboutcorporateinAsia.Youmentionedaslightlysoftergrowthcomingoutoftheconsumerjustwantedtogetasenseastohowcorporatesaretrendingiswhatwe'rehearingfromfolksthere'salittlebitofsofterdemandgiventheChina'snotdoingasmuch.

MikeCorbat (CEO):

Yes,Betsyit'sMike.I'dsaythatthat'saccuratethatbusinessactivityonthecorporatesideloansandjustoverallcalendarhasslowedabit.ThatbeingsaidJohntalkedaboutotherpartsofourbusinessthereinparticular,ourEMsalesandtradingbusinessesandourEMsalesandtradingbusinessinAsiahasactuallybeenquitestrongsowhileheadlinevolumeshaveslowed,youcanimaginethroughourTTSbusinessourforeignexchangebusinessinsomeofthoseMarkets,moreactivityascompaniestryandpositionandspendmoretimefocusingonthebalancesheetstheyareactuallyrunninginthosecompaniessoabitofinandoutbutyes,theregionisnoticecapingtheslowdown.

Thenjustaquestiononyourbondportfoliothatyoumanageglobally.I'mjustwonderingarethereanyopportunitiestooptimizeyourinvestmentsacrossgeographiesorweretheinvestmentsjusttrappedwithineachofthecountriesthatyou'regeneratingthedepositflowfrom?

Betsyit'salittlebitofbothsoobviouslywe'vegotabondportfolioatthetopofthehousebutwedohavebondportfoliosineachofthecountriesandsowithineachofthecountrieswelooktooptimizewithinthecountryandatthetopofthehousewelooktooptimizeacrosstheinstitutions.

Andisthereanymorethatyoucoulddohere?I'mjustthinkingabouttherelativerateenvironment.Couldtherebeopportunitiesforincrementaloptimizationandlowerrateenvironment?

JohnGerspach (CFO):

YouhavingthebudgetdiscussionMikewillhavewithmeastowhetherornotmyTreasuryunitisdoingtherightjob?Didhesubcontractthisouttoyou?

MikeCorbat (CEO):

Thankyou,Betsy.

Okay,thanks.

Theanswer,Betsyiswelookatthisstuffallthetimeandwe'realwaysfindingnewthingsthatwecando,soit'ssomethingthatwedolookateverydaybutIcan'tgiveyouaspecificanswertoistherealotmorewecando,wethinkwearedoingalotrightnow.

Andthenjustlastly,ontheUScreditcardenvironmentyoumentionedthatthetwoyearsforwardiswhenwithanewaccountyougettoabetterlendingenvironmentbecauseatfirstyougetthenewaccountsinandthentheyspendandborrow.Ijustwantedtounderstandwasthattwoyearstowhatyouthinkisaveragerunrateinborrowingorrevolvingfortheaccountsthatyou'relookingfororisthatwhenyoustarttoseethebeginningsofborrowings?I'mjusttryingtounderstandwhatthetwoyearnumberwasabout?

Weshouldseeisevenasearlyasnextyear,weshouldbegintoseegrowthinouroverallloanportfoliosoyoushouldstarttoseeaveragenetreceivablesfirsttheywillstabilizeandmaybethatwillbeveryearlynextyearandthenweshouldbegintoseesomegrowthbutitisgoingtotakealmostthatfulltwoyearsbeforeyou'veseentherealfullimpactofeverythingthatwe'redoing.We'llbeabletoshowyoumetricsalongthewaysoyou'llbeabletogaugejusthowwellwe'reprogressing.Imentionedtooneothercalleraboutgivingactiveaccountsbutyou'llalsoseethegrowthinANRbutgiventheheavyimpactofthatrewardandrebateonthetoplinerevenuesit'sgoingtotakesometime.Ifyouthinkaboutthe9%downthatwe'vegotyearonyearincardsjusttomaybegiveyouanexample,I'dsayabout10%ofthatdeclineisenvironmental.Somehangoverfromregulatory.About30%ofthatdeclineisjusttheimpactoftherun-offportfolio.Thelegacyportfolioisrunningoffandagainthatwillbegintoabateaswellbutthen60%ofthatdeclineisreallybeingcausedbythisinvestmentactivitythatwehave,soitwon'talwaysbeatthathighlevelbutit'sgoingtobeatalevelforsometime.

I'vegotitokaythanks,thatwasveryhelpful.

ThankyouBetsy.

Operator :

YournextquestioncomesfromthelineofMattBurnellwithWellsFargosecurities.

MattBurnell(Analyst-WellsFargoSecurities,LLC):

Goodafternoon.Thanksfortakingmyquestions.JustonequestiononloangrowthandsoyouroutlookintotheFourthQuarter.followinguponanearliercommentitseemslikethatwhilethereiscontinuedgrowthexpectationsacrossmanyinternationalMarketsthosegrowthexpectationsarecomingdownandyoureportedcoreloangrowthinCiticorpasbeingataboutmidsingledigit.AreyouexpectingthattocontinueatmidsingledigitlevelsoverthenextquarterortwoorarethereMarketswhereyouthinkthatthatcouldslowdownsubstantially?

JohnGerspach (CFO):

Idon'twanttogetintoaspecificguidancepointonloangrowthinCiticorponconstantdollarsbutwedothinkagainthisquarterdidpresentcertainchallenges.Idon'tthinktheenvironmentisgoingtochangedramaticallyintheFourthQuartersoIwouldn'tlooktothefourthquarterasbeingradicallydifferentfromwhatwe'veseenonasequentialbasislookingattheThirdQuarterbutagain,we'llhavetojustseehoweverythingcontinuestodevelopoffofthere.

What'shappeningisit'snotjustofcoursethefactthatyougetloangrowthbutalsomattersiswhereyougettheloangrowthandinwhatloanproductsdoyougettheloangrowthinandsothekeyforusistobegintoseetheloangrowthinthosehighermargincreditcardproducts.Weliketoseetheloangrowthintheretailbankthat'sfinebutthoseloansareusuallyslightlylowermarginsbecausetheyaresecuritizedandit'safixedpaymentschemeasopposedtorevolvingpaymentthatyouhaveoncardssoloangrowthisonethingandIfeelgoodaboutourabilitytogrowloansbutI'llfeelbetterwhenwebegintoseebettergrowthcomingoutofthecardproducts.

Okay,Johnthanksthat'shelpful.Andaveryquickfollow-up.IwanttomakesureIheardyoucorrectlyintermsofyourcommentaryaboutcreditcostsinthefourthquarter.IbelieveyousaidthosewouldberelativelystablewiththelevelsoftheThirdQuarter.Isthatcorrect?

JohnGerspach (CFO):

Yes,otherthanwhateverassetsaleimpactswehave.Someoftheassetsaleswe'llbedoingoutofholdingsactuallythegainorlostgetsrecognizedinthatcostofcreditline.Outsideofthoseactivitiesitshouldbestable.

Fairenough.Thankyouverymuch.

JohnGerspach (CFO):

Okaynotaproblem.

Operator :

YournextquestioncomesfromthelineofBrianKleinhanzlwithKBW.

BrianKleinhanzl(Analyst-KBW):

Higoodmorning.Justhadtwoquickquestions.Onthehedgegainsthatyoucalledout,werethoserelatedtospecksectormeaningenergyorregionlikeinBrazilorsomewhereelsethatdrovethebiggainthisquarter?

JohnGerspach (CFO):

WellI'mnotgoingtogointospecificthingsbutingeneral,thehedgesthatwe'vegotonourloanbook,that'sjustpartofourongoingriskManagementefforts.Weuseloanhedgestomanagecreditriskconcentrationsprimarilyandtotheextentthatwecanandforthemostpartwedo,weusesinglenameCDStohedgethoseconcentrationriskssoit'snotbecausewe'reworriedaboutanyparticularnamebutbecausewe'rejusttryingtomanageagainourconcentrationofriskinaparticularsector.Sointhethirdquarterasyousawwhathappenedintheenvironment,creditspreadsweregenerallywideningandthathadtwoimpacts.

Wehadgainsonthoseloanhedgesandatthesamepointintime,wetookprovisionsontheloansanditshouldn'tbe,that'sinlinewiththewaythatyoushouldexpectandI'mnotgoingtosayit'salwaysgoingtolineupcorrectlybutifyougobackforthelasttwoquarters,whatyou'llseeineachofthelasttwoquarterstotheextentwehadsmalllossesontheloanhedges,thatgaveusthentheopportunityusuallywasmatchedupwithanopportunitytoreleasereservesinthecorporateportfolioandtotheextentwherewehadasmallgain,weusuallyhadasmallbuildinaloanloss.AgainI'mnotgoingtosaythatit'sperfectlycorrelatedbutitcertainlyhasbeensomewhatcorrelatedoverthelastthreequarters.

That'shelpfulthanks.JustswitchinggearstothemortgagebankingIknowyousaidyouwantedtoincreasemarketsharebacktowhereyouwerehistoricallyorgettingcloserbutitlookslikeyearonyearisnotmuchchangeinmarketshare.Istherejustlessemphasisingrowingmarketshareorisitafunctionofthemarket?

No.It'snotlessemphasis.Itreallyisverymuchafunctionofthemarketitselfandthere'salsosoit'sacombinationcertainlyofthemarket.You'vealsoseeneveryonehasseensomeofthegainsonsalebeingreducedinthemortgagebooksoit'salsohavinganimpactontheoverallrevenuestreamwe'regettingoutofmortgagesbutwe'restillfocusedexactlyaswewere.We'renottryingtobeoneofthetopthreeorfourproducersofmortgages,butwedowanttobeinapositiontobeabletosupportourretailclientswhenitcomestotheirmortgageneeds.

Great.Thanksfortakingmyquestions.

JohnGerspach (CFO):

Notaproblem.

Operator :

YournextquestioncomesfromthelineofEricWasserstromwithGuggenheimSecurities.

EricWasserstrom(Analyst-GuggenheimSecurities):

Thanksverymuch.JohnIjustmaybewanttoconsolidatemyunderstandingofyouranswerstoseveralofthequestionsthathavecomebefore.Sojusttoprefaceforaquicksecond.Itseemsasif--

JohnGerspach (CFO):

Youaren'tgoingtogothroughall40questionsthathavebeenaskedsofarareyou?

Nojustlike37becauseacouplewererepeats.

JohnGerspach (CFO):

SoitseemsasiftheoverallsetofdynamicsissomerebasingofNIMbecauseofchangeinassetmixandafairlyconstantefficiencyratiogiventhechallengesofrevenuegenerationandreinvestmentandputtingasidemaybesomeofthevolatilityinCapitalMarkets,itseemsthenthattheprimaryleverontheIncomeStatementforsomeaccelerationinearningsisthereforassetgeneration.Isthatcorrect?

JohnGerspach (CFO):

That'sonewayoflookingatit,yes.

Andsowithinthat,IjustwanttomakesureI'munderstanding.

Itseemsasifwhatyou'repointingtoistheprimarydriversofincrementalassetgenerationmeaningbeyondthecurrentrunratetrend,ourcardintheUSretailloanininternationalconsumerandTreasuryTSSandprivatebankinICB,isthatbroadlycorrectbycategory?

JohnGerspach (CFO):

Yes.Whatyou've(inaudible)oniswhatwewouldconsidertobeourcorebankingactivitieswhichisexactlywherewe'refocused.Anddon'tforgeteverythingthatwedostartswithhavingclearlyarticulatedstrategythatwehavebeenconsistentwithforthepastfivetosixyearsandthatstrategyreallyguidesusalongtheway.Thesecondthingthatwearevery,veryproudofisthestrongbalancesheetthatwe'vebuiltandsowhenyoustartwithawelldefinedstrategyinastrongbalancesheetthatagainthengivesyoutheopportunitytopursueappropriatelevelsofgrowth.We'vegottentothepointnowwhereourcorebankingactivities,cards,retail,TTS,securityservices,privatebank,corporatelending,allofthoseaccountformorethan75%closeto80%ofourrevenuesandthat'swherewecontinuetoseeourgrowthcomingfrominthefuture.

Justincorporatebankingwedidn'theartoomuchaboutitonthecallbutisthereanyreasontoexpectsomechangeintrendlinethereonafewquarterviewfromanassetgeneration

perspective?

JohnGerspach (CFO):

Fromassetgeneration,we'llcontinuetosupportourclientsastheyneedassetswhetherthosebecorporateloansordebtorequityunderwritingsbutourabilitytogenerateassetsisgovernedbytheneedsofourclients.

MikeCorbat (CEO):

WhatwemayseeisifandastheMarketsremainvolatilewemayseecorporateschoosingtoaccesstheloanmarketversustheCapitalMarketsandmaybetransitionthatovertimesowe'veseenperiodsofvolatilitywewouldprobablybeaskedtoputourbalancesheettoworkandsoyoucouldseeloangrowthcomingthroughthecorporatesectorinthatformaswell.

Veryinteresting,thanksverymuch.

Operator :

Atthistimetherearenofurtherquestions.

SusanKendall(HeadofIR):

Thanks,[Regina]andthankyouallforjoiningusheretoday.Ifyouhaveanyfollow-upspleasereachouttoInvestorRelations,thanks.

Operator :

Ladiesandgentlemen,thisconcludestoday'sconference.Thankyouallforjoining.Youmaynowdisconnect.

Pleasefeelfreetoquoteupto200wordspertranscript.Anyquoteshouldbeaccompaniedby"ProvidedbyTheStreet"andalinktothecompletetranscriptandwww.thestreet.com.Anyotheruseormethodofdistributionisstrictlyprohibited.

THEINFORMATIONCONTAINEDINEACHWRITTENORAUDIOTRANSCRIPT(the"TRANSCRIPT")ISAREPRODUCTIONOFAPARTICULARCOMPANY'SCONFERENCECALL,CONFERENCEPRESENTATIONOROTHERAUDIOPRESENTATION.THETRANSCRIPTSAREPROVIDED"ASIS"AND"ASAVAILABLE"ANDTHESTREETISNOTRESPONSIBLEINANYWAYNORDOESITMAKEANYREPRESENTATIONORWARRANTYREGARDINGTHEACCURACYORCOMPLETENESSOFTHETRANSCRIPTSASPRODUCED,NORTHESUBSTANCEOFAPARTICULARCOMPANY'SINFORMATION.

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citigroup (c) earnings report: q3 2015 conference call transcript · 2015-10-15 · citigroup (c)...

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