Citigroup 1Q13 Earnings Call Notes

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This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

$C Earnings Call Notes

“tier one common ratio increasing to an estimated 9.3% on a Basel III basis, and we now expect the ratio to reach at least 10% by the end of this year”

“reduced our assets in Citi Holdings by $7 billion. Holdings assets now total just under $150 billion, or 8% of our balance sheet.”

“deposits grew 3% to $934 billion”

“Total Citicorp loans grew 5%, with consumer loans up 1% and corporate loans up 9%”

“Credit quality in our international consumer portfolio remained strong in the first quarter, with stable to improving credit trends on a sequential basis across each region. In Asia, the NCL rate returned to below 1%, with 90-plus day delinquencies at around 50 basis points. And, in Latin America, the NCL rate was fairly stable at 4.6%.”

“I think the world continues to be somewhat of a fragile place, and I expect the markets to remain volatile.”

Analyst Q: “are you sensitive to big price swings in some of these commodity prices out there?”

Answer: “Not really.”

“Latin America, it slowed down a little bit in the first quarter, as primary the Mexican economy slowed down a little bit. But you still, on a sequential basis, and you take a look at the average loans, we’re still growing card loans. And there’s some seasonality. Normally you’re going to have a little bit of a lower first quarter anyway. So we’re still getting growth in Latin America out of cards and the retail banking loans

The issue for us remains Asian…quite frankly, you’d go back to the first quarter of 2012 and we have flat average loans…We’re getting decent growth in Hong Kong, in Singapore. The issue, and I hate to keep bringing it up, Korea is a drag on us right now. And it’s one that we just have to work our way through”

“But it’s not just Korea. There’s deleveraging, there are regulatory constraints being put on in several countries throughout Asia.

And so we’re facing some headwinds in Australia, in Taiwan, and in Korea as well.”

“Mortgage for us is not a big business…we’re not looking to significantly grow share in mortgages, other than with our existing retail banking base.”

“The one thing that you have to assume is that the legal community is very creative, and so I would say that there always is the opportunity for additional litigation, even in matters that you might otherwise think would have passed the statute of limitations. I don’t think lawyers have statute of limitations.”