Citigroup at Barclays Conference Notes

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John Gerspach – Chief Financial Officer

No longer breaking out Citi Holdings

“As we mentioned at the start of the year, we will no longer report Citi Holdings as a separate segment after 2016. So Citi Holdings and Corporate/Other are shown here on a combine basis. Our goal is to operate Citi Holdings at or around breakeven going forward.”

Markets business better, banking weaker than expected

“, I would like to make a few comments on the current outlook for the third quarter. On the institutional side, market revenues are performing above our expectations for the third quarter, still down sequentially, but up around mid single-digits from last year, with continued strength in our rates and currency franchise. However, investment banking is a little lighter than we had estimated, as M&A revenues should continue to recover sequentially, but not enough to offset the comparison to a very strong second quarter in debt capital markets.”

Encouraged by what we’re seeing in consumer

“Turning to consumer, we remain very encouraged by the progress we are seeing in both North America cards and the international franchise. In North America, the Costco portfolio continues to exceed our expectations for customer engagement and new account acquisitions, and revenue trends are above our expectations on an organic basis, driven by strong volumes on our existing U.S. card portfolios.”

Hoping to return 100% of capital generated

“However, we have continued to increase that level of capital return each year and so our goal would be to continue that trend. I can’t tell you that we are going to be able to get from 65% to 100% in one step or two steps, but again, our goals in the fairly near-term to get to that 100% as quickly as possible.”

Constructive about Mexico

“So what was the second one, where do we see the growth coming? Okay. So which countries have got the largest growth potential and again I will stay on the international side of things. But clearly, we are very constructive about Mexico. We shed all of our consumer businesses, we are in the process of shedding our consumer businesses in every other Latin America country, but we are very constructive about Mexico. We still think that that has got tremendous untapped potential our franchise in Mexico.”

Mexico has a lot going for it

“When you look at all the advantages that Mexico has being with approximate to the U.S., the chance to really participate with the U.S. economy. The workforce in Mexico, there is just a lot of growth that can yet coming from Mexico. They are in the process of making I think the right forms, you haven’t seen the full benefit of those reforms as yet. But there is a lot of potential yet in Mexico and they should benefit then as the U.S. continues to recover. It’s got a good workforce, it’s got a good wage setup. So we just think that it’s a country that is still on to come.”