Citigroup 3Q17 Earnings Call Notes

Michael Corbat – CEO

Macro environment remains positive

“The macro environment remains a largely positive one, growth while not as high as we would like remains consistent and we don’t see too many economies in distress. However, while geopolitical tensions don’t seem to have weighed on growth at least as of yet, I don’t know how long that can continue. And while tax reform remains a question mark we do like the direction the administration is going in terms of regulation which we see as just a course to accommodate higher growth rather than a full scale regulatory repeal agenda.”

Near term challenges from natural disasters

“We’ve obviously also had the near-term challenges of a lot of natural disasters. And whether that’s been hurricanes or earthquakes or flooding damages that it comes as a result of some of those things, those things will have a near-term impact in terms of what growth will look and feel like. But probably as we’ve seen historically in some ways those actually end up being a stimulus in the longer-term in terms of those monies that come back in the form of aid and investment and in rebuilding. And that’s our expectation that we would probably see that occur again.”

John Gerspach

Consumer health pretty good

“I would say it is not just in the U.S. but as we look around the world we would rate the health of the consumer right now is pretty good. And again so you touched on a number of the most important things, so when you look at a consumer what are the things you look at, does the consumer have a job. If they have a job are they going to keep it, if they don’t have a job how difficult is it to get one. And I think as you look across the world unemployment, slow employment is high. Probably the bigger challenge to the consumer or to the worker has been the lack of wage growth and again not just in the U.S. but in many places. And we’re beginning to see some of that and again that’s helping to the consumer.”

No sign of deterioration

“Obviously we are a long way or we’re a long way from the last credit cycle and so we’re always challenging ourselves in terms of where we are. But a lot of the signs we looked for in terms of the deterioration of the consumer I got to say right now, we just don’t see and if you go and look at our NCL rates and look at our delinquency rates around the globe from the document we’ve given you, again the numbers don’t point to it.”