Citigroup Inc at Goldman Sachs U.S. Financial Services Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Richard Ramsden - Goldman Sachs - Analyst : So why don't we start off with a broad discussion about the macro environment? And look, I know there's a lot of different moving pieces, but you do have a unique global footprint. So maybe you could talk about your view on the US economy heading into next year, talk about what you're thinking about the global economy, and maybe augment the answer a little bit with what you're hearing from clients, what you're seeing in terms of consumer and corporate behavior.

Question: Richard Ramsden - Goldman Sachs - Analyst : Okay. Great. So let's talk about Citigroup and maybe we can start off with talking about the progress that you're making on the transformation in particular, efforts to address data governance, data quality related to regulatory reporting. Perhaps you can just tell us where you've got to and just give us an update around those.

Question: Richard Ramsden - Goldman Sachs - Analyst : Okay. Great. So maybe before we talk a little bit about strategy and next year, you can give us an update in terms of what you're seeing in the quarter in terms of both investment banking, markets and anything else you think we should be aware of?

Question: Richard Ramsden - Goldman Sachs - Analyst : And that's year on year?

Question: Richard Ramsden - Goldman Sachs - Analyst : All right. Okay. Great. So you just announced the renewal and expansion of the relationship with American Airlines. Maybe you can tell us about the strategic value of that relationship and just give us a sense of the financial impacts of that agreement.

Question: Richard Ramsden - Goldman Sachs - Analyst : Okay. Great. So more broadly on your card portfolio, I think it's fair to say that it's performed in line with your expectations, which I think you set out this last year. Maybe you can just update us on what you're seeing in terms of recent credit performance. Maybe talk a bit about the key drivers of each portfolio at this point in the credit cycle. And then kind of if you zoom out and look across your entire credit book, other things that you're monitoring more closely today than, say, 6 or 12 months ago. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 10, 2024 / 1:40PM, C.N - Citigroup Inc at Goldman Sachs U.S. Financial Services Conference

Question: Richard Ramsden - Goldman Sachs - Analyst : Okay. So maybe we can segue and talk a little bit about revenue. So maybe we can start off with NII. And I think NII ex-markets has also held up pretty well, certainly come in above the expectation that we had at this point last year. Can you talk a little bit about the puts and takes and how you expect the factors to play out through 2025 and maybe talk particularly about the services business, where I think there is this view that, that business is somewhat more asset sensitive?

Question: Richard Ramsden - Goldman Sachs - Analyst : Okay. Great. And then you mentioned deposits. We've had a couple of rate cuts, maybe we're going to get another one in December. What have you seen in terms of deposit flows? What's happened in terms of deposit pricing? And maybe you can kind of put it into some sort of context relative to your expectations and maybe in terms of what it means for deposit betas as we head into next year.

Question: Richard Ramsden - Goldman Sachs - Analyst : Okay. So then on noninterest revenue, again, you've seen good momentum in noninterest revenue this year. Can you talk a little bit about some of those drivers in each of the businesses and then again, talk broadly about how we should think about those going forward into next year?

Question: Richard Ramsden - Goldman Sachs - Analyst : Okay. So I know you mentioned that you're meeting with the Board, I think you said tomorrow and you're a bit --

Question: Richard Ramsden - Goldman Sachs - Analyst : Today and tomorrow. But -- and you're going to give us a more fulsome update early next year. But maybe you can give us just a better understanding of the building blocks on both revenues and expenses as we think about 2025 as it currently stands. And then on expenses, in particular, maybe talk a little bit about how we should think about the expense trajectory in the operation -- operating efficiency improvement potential as we head beyond 2025.

Question: Richard Ramsden - Goldman Sachs - Analyst : Okay. So let's talk about capital. I think in the third quarter, you were repurchasing stock, and I think you said that you were taking buybacks or looking at buybacks on a quarter-by-quarter basis. I think at the time, there was some confusion, given that you didn't give a level for the quarter, and I think some thought there were restrictions related to the enforcement action in July. So can you speak to that? And do you have an update in terms of buyback activity for this quarter? And then again, as we think longer term, what do you need to see to accelerate the pace of buybacks just given how much uncertainty there is around the regulatory environment and ultimately, what is going to happen to the capital requirements for the industry but also for Citigroup?

Question: Richard Ramsden - Goldman Sachs - Analyst : Okay. So I think we've got a couple of minutes left. So maybe we can just wrap up with your priorities as we head into 2025. And then I think linked to that, look, you have made, as you've talked about, a lot of progress in simplifying the firm between the divestitures and some of the organizational changes. What are the main points you think that investors really should focus on in terms of your current positioning and the value proposition that you offer -- you think you can offer shareholders today?

Question: Richard Ramsden - Goldman Sachs - Analyst : Okay. I think with that, we're out of time. So Mark, thank you very much for joining us and see you hopefully again next year.