Citigroup at Goldman Sachs Conference Notes

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Citigroup (C) Management Presents at Goldman Sachs US Financial Services Brokers Conference

John Gerspach, CFO

It’s a more difficult environment than we envisioned

“We would have thought that you would have been consistently above 2.5%, touching 3% at this point in time. From a rate environment we would have thought that we would have already been dealing with some level of increase in rates. So it’s a different environment than what we had envisioned”

Expecting markets revenues to be down 15-20% this quarter

“we still have three weeks or so to go to the end of the quarter. But I’d say that right now what we are looking at would be fixed income and equity markets revenues down somewhere between 15% to 20% sequentially, and we are seeing a combination of some of the things you talked about, seasonal factors, as well as continued macro uncertainty.”

Don’t see any knock on effects from energy in credit quality

“we don’t see any real knock-on effects yet from the energy, on other aspects of our C&I book. And certainly from a consumer point of view, right now what we are looking at is very steady credit performance. Again, you are going to have a blip up here or there, but for the most part a very steady credit performance both from the delinquency point of view, as well as from a credit loss point of view.”

The Fed’s commentary about future increases will be important next week

“from a what happens after the day after, I think a lot of that’s going to again depend upon Fed commentary. So are we going to see a rate increase next week and then what’s the prospect? How do they think – how do we think that they are going to handle rate increases into the future?”