Citigroup 2Q16 Earnings Call Notes

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Citigroup’s (C) CEO Michael Corbat on Q2 2016 Results

Going to return 10B in capital to shsareholders over the next four quarters

“we were pleased to learn that Federal Reserve did not object to the capital plan we submitted. And as a result, we’ll return $10.4 billion in capital to our shareholders over the next four quarters. The plan includes more than tripling our dividend to $0.16 per share and repurchasing $8.6 billion in common stock. This result combined with the feedback we received from the Fed and the FDIC on our resolution plan shows the progress we continue to make to becoming a safer and stronger institution.”

The environment remains challenging>

“Looking forward, the environment remains challenging. We’re continuing to navigate the consequences of the UK referendum on the EU from its economic impact to how exactly it will structure our legal vehicles to continue to best serve our clients. And while the UK has a new leader, the U.S. is still in the midst of a unique presidential campaign and such geopolitical and economic uncertainty doesn’t create a clear picture for potential interest rate increases.”

John Gerspach

We noted improved momentum in Mexico

” we saw improved momentum in Mexico in the retail bank during the month of June. We noted that overall consumer revenues in Mexico grew 4% year-over-year that was higher than what we had thought that was going to be when Mike spoke. So we had momentum building in Mexico. We had good engagement with clients throughout the whole UK referendum. And then we benefited from the lower cost of credit again because of the high-quality of our book.”

Very very early in the quarter but volumes look fine so far in July

“it’s still very, very, very early in the third quarter. So it’s a little hard to comment on activity for an entire quarter after just eight, nine trading days. But the activity levels are fine that I think it’s good. And we’ll have to see how everything holds up into the month of August, but again the beginning part of July looks fine.”

M&A Pipeline remains pretty strong post brexit

” I think the pipeline remains pretty strong. And actually on the heels of Brexit, we saw actually quite good deal flow. You saw debt capital markets, you saw equity capital markets, you saw M&A getting executed getting announced. So I would say the pipeline for the third quarter remains pretty strong and provided we get reasonable markets. We’ve got an environment in which we can continue to get these things done. So it feels pretty good.”