花旗銀行 (C) 2004 Q2 法說會逐字稿

Good morning and welcome to the second-quarter 2004 earnings review featuring Citigroup's CEO, Chuck Prince and CFO, Todd Thomson.

早安，歡迎來到花旗集團執行長 Chuck Prince 和財務長 Todd Thomson 主持的 2004 年第二季財報回顧。

Today's call will be hosted by Art Tillsley (ph), Vice President, Investor Relations.

今天的電話會議將由投資者關係副總裁 Art Tillsley（博士）主持。

We ask that you hold all questions until the completion of the formal remarks at which time you will be given instructions for the question-and-answer session.

我們要求您保留所有問題，直到正式發言完成，屆時您將收到有關問答環節的指示。

Mr. Tillsley, you may began.

蒂爾斯利先生，你可以開始了。

Good morning everyone and thank you for joining us to walk through our second-quarter 2004 earnings results.

大家早安，感謝您與我們一起回顧我們 2004 年第二季的獲利結果。

We have Chuck Prince with us and Todd Thomson.

我們有查克·普林斯和托德·湯姆森。

Chuck will begin with some remarks and then Todd will take us through the presentation and then they both will be happy to take questions after the presentation.

查克將首先發表一些評論，然後托德將帶領我們完成演示，然後他們都將很樂意在演示後回答問題。

With that, let me turn over to Chuck.

說到這裡，讓我把注意力轉向查克。

Thank you Art and let me echo your thanks and welcome to the people on the call.

謝謝阿特，讓我向參加電話會議的人們表示感謝和歡迎。

Thank you for joining us.

感謝您加入我們。

We are here to talk about our earnings and before Todd goes through the detailed presentation which you all have, I thought I would just offer few comments on my perspective on the quarter.

我們來這裡是為了談論我們的收益，在托德向大家詳細介紹之前，我想我只想就我對本季的看法發表一些評論。

Obviously the big one-time event for the quarter was the WorldCom settlement and litigation reserve.

顯然，本季的一次性重大事件是世通和解和訴訟準備金。

That is something which frankly hurts a little bit.

坦白說，這是有點傷人的事情。

I wish we didn't have to do that.

我希望我們不必這樣做。

That is a lot of money.

那是很多錢。

But one of my jobs personally is to make sure we're clearing the decks for future growth.

但我個人的工作之一是確保我們為未來的成長做好準備。

And so while it feels bad to have to pay out dollars of that magnitude, it feels very good to clear the decks and put those issues behind us.

因此，雖然不得不支付如此巨額的資金讓人感覺很糟糕，但清理一切並將這些問題拋在腦後感覺非常好。

I think to the extent we have issues from the past, one of those focal points for this management team is to put them behind us and move on.

我認為，就我們過去遇到的問題而言，管理團隊的重點之一就是將它們拋在腦後，繼續前進。

We also have a one-timer of the Samba sale and I think the sales of some of these non-strategic investments, whether it was Samba or the announcement of the reduction of the holding in Nikko or Fubon, this little garage sale or spring cleaning or whatever label you would like to put on it is something I think you can continue to see from this management team.

我們還有一次 Samba 出售，我認為其中一些非戰略投資的出售，無論是 Samba 還是宣布減持 Nikko 或 Fubon，這個小型車庫出售或春季大掃除或您想貼上的任何標籤，我認為您可以繼續從這個管理團隊中看到。

Things that don't fit core operations and especially things where the returns on the investment do not satisfy our criteria.

不符合核心業務的事情，特別是投資回報不符合我們標準的事情。

I think you're going to see those things moved out of the organization.

我認為你會看到這些東西被移出組織。

If you put aside the one-timers, the underlying business dynamics are very good.

如果拋開一次性的，潛在的業務動態非常好。

We had 9 percent revenue growth excluding all of these factors.

排除所有這些因素，我們的收入成長了 9%。

We have positive operating leverage which you know I talk about all the time as important for the Company, and I especially want to call out the performance of our International Group.

我們擁有積極的營運槓桿，你知道我一直在談論這對公司很重要，我特別想強調我們國際集團的表現。

International is really one of the distinguishing competitive characteristics for Citigroup; no one else has our franchise and if you look at the income growth for the International Retail bank of 50 percent or the income growth for International cards of 49 percent, all organic -- all reflecting the investments we've made and continue to make, the GTS growth and income of 45 percent, largely International focus for that business right now.

國際化確實是花旗集團的顯著競爭特徵之一。沒有其他人擁有我們的特許經營權，如果你看看國際零售銀行50% 的收入增長或國際卡49% 的收入增長，所有這些都是有機的——所有這些都反映了我們已經進行和繼續進行的投資， GTS 的成長和收入為 45%，目前該業務主要受到國際關注。

These are spectacular returns and things that we're very proud of and very focused on growing.

這些都是驚人的回報，我們對此感到非常自豪，並且非常注重發展。

Asia and particular, as you've heard me speak in the past is a personal interest of mine -- I've been there a lot and I'm very proud of what we are doing in Asia.

亞洲，特別是亞洲，正如你過去聽我說過的那樣，這是我個人的興趣——我去過那裡很多次，我對我們在亞洲所做的事情感到非常自豪。

We obviously also have a great credit environment.

顯然我們也有良好的信用環境。

We're proud of that.

我們為此感到自豪。

We take credit for that.

我們因此而受到讚揚。

How we manage our credit exposures is part of how we manage the Company.

我們如何管理信用風險是我們管理公司的一部分。

It's not just a rising tide lifts all boats.

這不僅僅是水漲船高。

This is something where our credit officers made very specific decisions and where the benefit of those smart decisions are showing up in our results now.

我們的信貸官員做出了非常具體的決策，而這些明智決策的好處現在已經體現在我們的結果中。

Within the 7 percent operating expense growth are some very significant investments for the future.

在 7% 的營運費用成長中，有一些對未來非常重要的投資。

One of the key aspects of our management of the Company is to focus on organic growth and to focus on the kind of acquisitions that extend the platform we have in a strategic way.

我們公司管理的關鍵方面之一是專注於有機成長，並專注於以策略方式擴展我們平台的收購。

And whether that's principle mortgage or whether that's the Lava Trading, or our continuing investments in technology and people, Todd is going to talk about that in a minute;

無論是本金抵押貸款還是熔岩交易，還是我們對技術和人員的持續投資，托德稍後都會討論這個問題；

I'm very proud of the investments we're making that is going to result in growth in the future.

我對我們正在進行的投資感到非常自豪，這些投資將帶來未來的成長。

I will just close with two things; first, we have total equity in trust preferred of $104 billion.

我將以兩件事作為結束；首先，我們優先信託的總股本為 1,040 億美元。

And if you exclude the special items, we once again earned 21.9 percent, more than 20 percent return on equity.

如果排除特殊項目，我們再次獲得 21.9%，超過 20% 的股本回報率。

That is something that no other Company in the world, I believe, can say and we say a quarter after quarter.

我相信，世界上沒有其他公司可以說這一點，而且我們每季都在說。

The last though from me is I just want to say I feel very positive about the way the company is moving, the kinds of things we are doing, the momentum I see in the business even in the face of some sluggish markets.

我想說的最後一點是，我只想說，即使面對一些低迷的市場，我對公司的發展方式、我們正在做的事情以及我在業務中看到的勢頭感到非常積極。

I think we are really investing for growth in the future which is going to pan out.

我認為我們確實是在為未來的成長進行投資，而未來將會取得成功。

And so with that, Todd, I turn it over to you to go through the detailed discussion please.

因此，托德，我將其交給您進行詳細討論。

Thanks Chuck and the first thing I want to say is you notice that this call is hosted by Art Tillsley, who is doing a fabulous job filling in for Sheri Ptashek.

謝謝 Chuck，我想說的第一件事是你注意到這個電話會議是由 Art Tillsley 主持的，他正在出色地替代 Sheri Ptashek。

Or Sheri Sabarino (ph) now.

或現在的 Sheri Sabarino（博士）。

Sheri is at home with her baby, Caroline, so I just want to say that for the first time in 18 quarters, Sheri, take a rest.

Sheri 和她的孩子 Caroline 在家，所以我只想說，這是 18 個季度以來的第一次，Sheri，休息一下。

And Caroline, welcome.

還有卡羅琳，歡迎你。

I'm sure Caroline is on the call.

我確信卡羅琳正在通話中。

Let me start with how I see the quarters performance at the top of the wave, if you will.

如果您願意的話，讓我先談談我對高峰時期的季度表現的看法。

Obviously the two big events, but underlying that, very strong business performance; 9 percent revenue growth, 7 percent expense growth.

顯然是這兩件大事，但背後卻是非常強勁的業務表現；收入成長 9%，支出成長 7%。

We continue to invest in our businesses at this time of the cycle.

在這個週期的這個時期，我們將繼續投資我們的業務。

Our investments in technology and marketing and building new branches and hiring new salespeople is up 25 percent from a year ago.

我們在技術和行銷以及建立新分支機構和僱用新銷售人員方面的投資比一年前增加了 25%。

And so positive operating leverage despite these large investments.

儘管有這些巨額投資，但營運槓桿依然積極。

It is the best credit environment we've seen in years on the corporate side and the consumer side with all the forward indicators also showing positive trends.

這是我們多年來在企業方面和消費者方面看到的最好的信貸環境，所有前瞻性指標也顯示出積極的趨勢。

So that bodes well for the second half of the year.

因此，這對下半年來說是個好兆頭。

And very strong customer volume growth just about across the board in each one of our businesses.

我們每一項業務的客戶量都在全面強勁成長。

Client trading has softened as we got into this quarter from last quarter so the transactional volumes are down a bit.

隨著我們從上季度進入本季度，客戶交易已經疲軟，因此交易量略有下降。

And on the good news that the investment baking backlog has improved all quarter and currently stands at its highest level that we've seen all year.

好消息是，投資烘焙積壓工作在整個季度都有所改善，目前處於我們全年看到的最高水平。

The economic and market context for these results; the U.S. recovery continues to take hold.

這些結果的經濟和市場背景；美國的復甦繼續站穩腳步。

We had a bit of a moderating of that we see beginning in May and continuing in June.

我們看到，從 5 月開始，到 6 月，這種情況會有所緩和。

But still strong performance.

但表現依然強勁。

Its due for supply management, non manufacturing business index has had a 15 consecutive month of expansion in the manufacturing index; its 13th consecutive month expansion so the U.S. economy continues to do well.

受供應管理影響，非製造業商業指數已連續15個月領先製造業指數；連續第 13 個月擴張，顯示美國經濟持續表現良好。

Asia continues to do very well, so GDP growth there is strong.

亞洲持續表現出色，因此國內生產毛額成長強勁。

Again, driven by China but you are seeing that kick into Japan, kick in to Korea and some of the other countries around in Asia.

同樣是由中國推動的，但你會看到這種趨勢蔓延到日本、韓國和亞洲其他一些國家。

Latin America economic growth is on track and most of the economies there continue to recover.

拉丁美洲經濟成長步入正軌，大多數經濟體持續復甦。

The UK is strong, and the Euro zone is really the only place in the world that is just bumping along if you will, with Germany continue to be weak.

英國很強大，而歐元區實際上是世界上唯一一個不斷前進的地方，而德國則繼續疲軟。

So in general, the economic environment has been very positive for our business.

總的來說，經濟環境對我們的業務非常有利。

Trends in the capital markets, trading volume was down from March to April and down then again from April to May.

從資本市場走勢來看，3-4月交易量呈下降趨勢，4-5月交易量再次下降。

And then down from May to June.

然後從五月到六月下降。

So you can see that in terms of transactional volumes, we've hit a bit of a softening period here.

所以你可以看到，就交易量而言，我們已經經歷了一段疲軟時期。

We will see how that goes over the next quarter or two.

我們將在接下來的一兩個季度看看情況如何。

Spreads expanded a bit as people recognized a bit more risk in the market.

隨著人們認識到市場風險增加，利差略有擴大。

And you're starting to see this adjustment in mutual fund flows where you saw $40 billion of net in flows to equity funds and net outflows out of fixed incomes.

你開始看到共同基金流量的這種調整，你看到 400 億美元的淨流入股票基金和固定收益的淨流出。

So beginning to see that transition as we would expect.

因此，我們開始看到這種轉變，正如我們所期望的那樣。

And obviously interest rates moved up in the quarter although by the time we got to the end of the quarter they didn't move up as nearly as much as they were simply volatile during the quarter.

顯然，利率在本季有所上升，儘管到本季末時，利率的上升幅度並沒有像本季的波動那麼大。

In that context, if I can move to really the first data page or page 2 in the presentation.

在這種情況下，如果我可以真正移動到簡報中的第一個資料頁或第 2 頁。

Our GAAP performance was revenues of $22 billion, up 15 percent.

我們的 GAAP 業績為營收 220 億美元，成長 15%。

That's a record or if you take out the Samba gain, a near record revenue for the Company.

這是一個創紀錄的收入，或者如果除去 Samba 的收益，這將是公司收入的接近創紀錄的收入。

That income of 1.1 billion in EPS is 22 cents.

11 億美元的 EPS 收入為 22 美分。

That obviously includes all these two significant one-time events during the quarter.

這顯然包括本季所有這兩個重大的一次性事件。

If you take those out, then income was up 24 percent.

如果把這些去掉，那麼收入就會增加 24%。

We had record quarterly earnings in 4 of our 9 businesses.

我們的 9 項業務中有 4 項的季度獲利創歷史新高。

We had double-digit income growth in 7 of our 9 businesses, so again very strong underlying performance business by business.

我們的 9 項業務中有 7 項實現了兩位數的收入成長，因此各個業務的基本業績再次非常強勁。

We had double-digit income growth in 5 of our 6 regions, so not only business by business, but region by region we are seeing quite a strong performance.

我們在 6 個地區中的 5 個地區實現了兩位數的收入成長，因此不僅逐一業務，而且逐個地區地我們都看到了相當強勁的表現。

And a very strong credit environment both on the consumer side and corporate side in we will talk more about that.

消費者和企業方面都擁有非常強大的信貸環境，我們將更多地討論這一點。

Number one global debt and equity underwriter for the 11th consecutive quarter.

連續 11 個季度排名第一的全球債務和股票承銷商。

I'm going to talk about the WorldCom reserves and what they meant on the financial next as well as the Samba sale.

我將討論世通儲備金以及它們對下一步財務以及桑巴出售的意義。

We also continued to reallocate our capital to what we think (technical difficulty) more strategic uses.

我們也繼續將資金重新分配到我們認為（技術難度）更具策略性的用途。

So you fell out of our minority stake in the Samba Financial Group in Saudi Arabia; that generated a gain.

所以你退出了我們在沙烏地阿拉伯桑巴金融集團的少數股權；從而產生了收益。

We also announced our intention although we have not done any action on that during this quarter, during the second-quarter.

我們也宣布了我們的意圖，儘管我們在本季和第二季尚未採取任何行動。

We've announced our intention to reduce our Nikko Cordial stake to 12 percent and our intention to exit our stake in Fubon Financial.

我們宣布有意將 Nikko Cordial 股份減持至 12%，並有意退出富邦金控股份。

Reallocating that to things like the acquisition of Lava Trading which we announced; like the acquisition of present Principal Residential Mortgage which closed on July 1; like the acquisition of KorAm which began to generate positive earnings for the Company this quarter.

將其重新分配到我們宣布的收購 Lava Trading 等事情上；例如 7 月 1 日完成的對現有 Primary Residential Mortgage 的收購；例如收購 KorAm，本季開始為公司帶來正收益。

We also got regulatory approval to begin our life insurance joint venture in China which we hope can be as successful as our one in Japan has recently been.

我們也獲得了監管部門的批准，可以在中國建立人壽保險合資企業，我們希望該合資企業能夠像我們最近在日本的合資企業一樣成功。

Moving to the next page and just make sure that everybody understands -- the large moving parts here in terms of the Litigation Reserve as well as the sale of Samba.

翻到下一頁，確保每個人都理解——這裡涉及訴訟儲備金以及 Samba 出售等重大變動部分。

Litigation Reserve again previously announced these same numbers that you saw previously; $4.95 billion after-tax or reduction to our net income, 95 cents a share, and that was booked in our GCIB other line.

訴訟儲備金之前再次公佈了您之前看到的相同數字；稅後淨收入為 49.5 億美元，即每股 95 美分，已計入我們的 GCIB 其他業務。

The gain on Samba Financial, this was both a consumer and a corporate business.

Samba Financial 的收益既是消費者業務也是企業業務。

It was in our EMEA organization, so our European Middle East and Africa organization.

它是在我們的 EMEA 組織中，也就是我們的歐洲中東和非洲組織中。

The gain on an after-tax basis on that sale was $756 million or 15 cents a share and that was equally split.

此次出售的稅後收益為 7.56 億美元，即每股 15 美分，平分收益。

That gain is equally split and shows up in the consumer other line and the GCIB other line and it shows up in the EMEA region.

此收益平均分配並顯示在消費者其他產品線和 GCIB 其他產品線中，並顯示在 EMEA 地區。

And then we also announced the Citi Financial Federal Reserve in force so that had previously reserved.

然後我們也宣布花旗金融聯準會生效，以便之前保留。

So no P&L impacts in this case.

所以在這種情況下沒有損益影響。

So the total impact of these items was 80 cents per share or about $4.2 billion.

因此，這些項目的總影響為每股 80 美分，即約 42 億美元。

In our legal reserves that we announced before now stand at -- for these particular items, now stand at $6.7 billion to deal with the future issues.

我們先前宣布的針對這些特定項目的法定儲備金目前為 67 億美元，以應對未來的問題。

Page 4 is our overall income statement.

第 4 頁是我們的整體損益表。

Revenues on an adjusted basis ex Samba, $21.1 billion.

調整後的收入（不包括 Samba）為 211 億美元。

That is the second highest we've ever had, just shy of what we did last quarter, up 9 percent from a year ago.

這是我們有史以來第二高的水平，略低於上個季度的水平，比一年前增長了 9%。

And about $43 billion for the first half of the year, up 12 percent, so very strong underlying business momentum on the revenue line for the Company.

今年上半年的營收約為 430 億美元，成長 12%，因此公司營收線的基礎業務勢頭非常強勁。

Expenses up 7 percent on an adjusted basis and again that's including all the additional investments that we're making at this point.

調整後的費用增加了 7%，這也包括我們目前正在進行的所有額外投資。

Up 9 percent year to date, the first half of the year so again good operating leverage so far this year for the Company despite these investments we're making.

今年上半年迄今成長了 9%，因此儘管我們正在進行這些投資，但今年到目前為止，公司的營運槓桿再次良好。

You can see that credit costs in claims are down 21 percent this quarter, down 8 percent for the year.

您可以看到本季索賠中的信貸成本下降了 21%，全年下降了 8%。

So a lot of leverage that we're getting in our income statement from the favorable credit environment and again the forward indicators looked good as well so we expect continued good performance on credit, both consumer and corporate.

因此，我們從有利的信貸環境中獲得了損益表中的大量槓桿作用，而且前瞻性指標看起來也不錯，因此我們預計消費者和企業信貸將繼續保持良好表現。

On a net income basis $5.3 billion, after-tax adjustable for these two issues.

根據這兩個問題，稅後淨利為 53 億美元。

That's more than we've ever made before so again, the underlying business delivered record performance this quarter, up 24 percent and $10.6 billion for the first half of the year income after-tax of $10.6 billion, up 26 percent.

這比我們以前取得的成績還要多，因此，基礎業務本季創下了創紀錄的業績，增長了 24%，上半年實現了 106 億美元的稅後收入 106 億美元，增長了 26%。

On an EPS basis, $1.02 this quarter, up 23 percent and a little over two bucks for the first half of the year, up 25 percent.

以每股盈餘計算，本季為 1.02 美元，成長 23%，上半年為 2 美元多一點，成長 25%。

Our tax rate again was obviously affected by the large charge in the U.S., so if you adjust for that and adjust Samba gain, our tax rate for this quarter was 32.6 percent and 31.8 percent for the first half of the year.

我們的稅率顯然再次受到美國高額費用的影響，因此如果對此進行調整併調整 Samba 收益，我們本季的稅率為 32.6％，上半年為 31.8％。

We talked about it by segment on the next page.

我們在下一頁逐段討論了它。

The Global Consumer segment continues very strong performance in really across each of the three areas; both cards and consumer finance as well as retail banking globally had strong performance, up 20 percent.

全球消費者細分市場在這三個領域中的每一個領域都持續保持強勁的表現；全球信用卡和消費金融以及零售銀行業務均表現強勁，成長了 20%。

Corporate Investment Bank again adjusting for the litigation in Samba charge was a record quarter for them, up 31 percent.

企業投資銀行再次針對 Samba 訴訟進行調整，該季度費用增加了 31%，創歷史新高。

Again, strong fixed income performance as well as a very strong increase in the performance of the advisory business, our M&A business, which did very well this quarter and very good credit.

同樣，強勁的固定收益業績以及諮詢業務、我們的併購業務業績的強勁增長，本季表現非常好，信用也非常好。

Private Client, up 13 percent from a year ago.

私人客戶，較去年同期成長 13%。

You can see in that business though that it is down from last quarter as the trading revenues of our Private Clients declined from last quarter.

您可以看到該業務較上季度下降，因為我們的私人客戶的交易收入較上季有所下降。

Investment management -- I will talk about a little bit separately again.

投資管理——我再單獨講一點。

You had the same issue on trading revenues and Private Bank as well as a charge we took in Argentina which I will explain.

您在交易收入和私人銀行以及我們在阿根廷收取的費用方面也遇到了同樣的問題，我將對此進行解釋。

And Proprietary investment activities we talked about last quarter as a situation where the environment was improving, we didn't actually see it in our income numbers last quarter but we expected to have stronger income going forward.

我們上季談到的自營投資活動是環境正在改善的情況，我們實際上並沒有在上季的營收數據中看到這一點，但我們預計未來會有更強勁的收入。

So a very strong performance, I would say actually an usually strong performance of $273 million this quarter.

因此，這是一個非常強勁的業績，我想說，本季實際上是 2.73 億美元的強勁業績。

Corporate other is down as we are beginning to see as we expected the impact of higher rates on our treasury performance, corporate level.

企業其他業務下降，因為我們開始看到利率上升對我們的財務表現和企業層面的影響。

And so again, the $5.38 (ph) billion of income.

等等，53.8 億美元的收入。

For the first half, we see that it is actually very consistent performance for each of its segments.

對於上半年，我們看到每個細分市場的表現其實非常一致。

For the first half, Consumer up 21 percent on adjusted basis;

上半年，消費者經調整後成長 21%；

Corporate Investment Bank up 27 percent on adjusted basis;

企業投資銀行業務經調整後上漲 27%；

Private Client had a very strong first quarter so they are up 30 percent from the year ago;

私人客戶第一季表現非常強勁，比去年同期成長了 30%；

Investment Management up 15; and the Company overall on an EPS basis, up 25 percent with the underlying business performance.

投資管理上升15；公司整體每股盈餘 (EPS) 成長了 25%，基本業務表現也隨之成長。

You can see in the circled chart on the right hand side, the lower one, that our international businesses are now again adjusting for the charge in the sale of 40 percent of our total income.

您可以在右側下方的圓圈圖中看到，我們的國際業務現在再次針對占我們總收入 40% 的銷售費用進行調整。

So we continue to build that international business quite extensively.

因此，我們繼續廣泛開展國際業務。

On the next page, I just want to highlight a couple of the starred for each product.

在下一頁上，我只想突出顯示每個產品中加星標的幾個。

Transaction services we've talked about the last few quarters as doing a terrific job of building their customer balances, we will talk more about that in a minute.

我們在過去幾季中討論過交易服務在建立客戶餘額方面做得非常出色，我們稍後將詳細討論這一點。

That is now beginning to show up in the income performance.

這一點現在開始體現在收入表現上。

So Transaction services up 45 percent from a year ago making $261 million during the quarter.

因此，本季交易服務營收比去年同期成長 45%，達到 2.61 億美元。

And that was partly as the result of the good credit environment and credit release there but mostly results of the strong revenue performance from increased customer volumes there.

這部分是由於那裡良好的信貸環境和信貸釋放，但主要是因為那裡的客戶量增加帶來了強勁的收入表現。

Cards continued to do a very good job of integrating Home Depot as well as Sears and as well as international cards business which is up about 50 percent from a year ago.

Cards 繼續出色地整合了 Home Depot 和 Sears 以及國際信用卡業務，比一年前成長了約 50%。

So investing still in that business internationally on an organic basis which had that terrific performance.

因此，我們仍然在有機的基礎上對國際業務進行投資，該業務的表現非常出色。

Capital markets and banking, at 28 percent.

資本市場和銀行業，佔 28%。

We talked about that in terms of strong revenue growth but also very good credit performance.

我們談到了強勁的收入成長以及非常好的信用表現。

The record number for retail banking, life insurance annuities, again, very strong underlying customer volume so working through what had been a difficult environment for life and annuities because of the low interest rate environment.

零售銀行業務、人壽保險年金的數量再次創紀錄，基礎客戶量非常強勁，因此，由於低利率環境，人壽保險和年金業務面臨困難的環境。

As interest rates begin to move up, we should see continued strong income performance out of that business.

隨著利率開始上升，我們應該會看到該業務的收入表現持續強勁。

Asset management -- I will talk in a little bit more detail in a minute but the quick summary there is that the asset management business itself is actually up 12 percent; the retirement services business which had a charge from Argentina was down and that's why you see a softness in the asset management growth from a year ago.

資產管理—我將在一分鐘內更詳細地討論，但快速總結是資產管理業務本身實際上成長了 12%；阿根廷收費的退休服務業務有所下降，這就是為什麼你會看到資產管理成長較一年前疲軟。

On a regional basis, the real star for the quarter was Asia, up 50 percent; a strong performance both consumer and corporate.

從地區來看，本季真正的明星是亞洲，成長了 50%；消費者和企業的強勁表現。

We had revenue growth in Asia of 24 percent and we're seeing extremely strong performance literally business by business and country by country in Asia.

我們在亞洲的營收成長了 24%，我們看到亞洲各企業和各國的業績都極為強勁。

And Japan has stabilized and is up 13 percent from a year ago.

日本已經穩定下來，比一年前成長了 13%。

Corporate performance has improved and the consumer performance has improved as well.

企業業績有所改善，消費者績效也有所改善。

Now Japan -- you will remember a year ago we had a tax settlement with the authorities in Japan and that resulted in a release of $94 million after tax a year ago in Japan.

現在是日本——你會記得一年前我們與日本當局達成了稅務和解，結果一年前日本稅後釋放了 9,400 萬美元。

And so if you adjusted for that, the Japan growth is actually quite strong.

因此，如果對此進行調整，日本的成長實際上相當強勁。

We talked really for the past I guess three quarters -- about three or four quarters -- about the fact that it was time now to go back to investing for growth as we saw a turnaround in the economy.

我想我們過去確實談論了三個季度——大約三到四個季度——關於這樣一個事實：隨著我們看到經濟好轉，現在是時候重新投資成長了。

We have been making those investments.

我們一直在進行這些投資。

We make those investments in technology; we been making those investments in building new branches; we've been making those investments in terms of increased advertising and marketing, hiring new salespeople etc.

我們對科技進行投資；我們一直在建設新分支機構方面進行投資；我們一直在增加廣告和行銷、僱用新的銷售人員等方面進行這些投資。

I just wanted to highlight 3 specific areas where we've been making those investments and you can start to see some of the results come through.

我只是想強調我們一直在進行這些投資的 3 個具體領域，您可以開始看到一些成果。

First of all international cards.

首先是國際卡。

International cards, we increased our advertising marketing spending by 45 percent from a year ago and that is a consistent increase that's been happening every quarter; places like Hong Kong and Malaysia and Singapore and Turkey.

國際卡方面，我們的廣告行銷支出比一年前增加了 45%，每季都持續成長；香港、馬來西亞、新加坡和土耳其等地。

We've also spent a lot of time rethinking how we operate the business, rethinking of new products that we can develop, taking ideas of products from one market and applying those to another market, taking some of the technology in the underwriting skill and the marketing skill from the U.S. and applying that internationally.

我們也花了很多時間重新思考我們如何經營業務，重新思考我們可以開發的新產品，從一個市場汲取產品創意並將其應用到另一個市場，採用承保技能和技術方面的一些技術。來自美國的行銷技巧並將其應用於國際。

The results of that has been an increase in managed receivables of almost 30 percent from a year ago.

結果是管理的應收帳款比一年前增加了近 30%。

An increase in open accounts of 47 percent from a year ago.

未結帳帳戶比一年前增加了 47%。

And a net income increase of about 50 percent from a year ago.

淨利潤比一年前增長了約50%。

So beginning to see real payoffs from these investments that we are making.

因此，我們開始看到我們正在進行的這些投資的真正回報。

In the middle bar there on page 8, the middle bar you can see international consumer finance performance and that business over the past year, we built 141 new branches in this business.

在第8頁的中間欄，中間欄你可以看到國際消費金融的表現以及該業務在過去的一年中，我們在該業務中建立了141個新分支機構。

And those branches have been in places like India, which has been the single largest place we built branches but also Poland, the UK and Italy.

這些分支機構位於印度等地，印度是我們建立分支機構最大的地方，此外還有波蘭、英國和義大利。

And as a result, we have seen income there grow by 63 percent from a year ago.

結果，我們看到那裡的收入比一年前增加了 63%。

And then in the transaction services business we've had to invest to improve our technology so that we can provide a broader set of products to the customers and as a result of doing that, investing in global cash management processing platforms, investing in the Citi Direct online banking product for corporations, we have increased our cash customers for the Citi Direct business by 350 percent from 2001.

然後在交易服務業務中，我們必須投資改進我們的技術，以便我們能夠為客戶提供更廣泛的產品，因此，投資全球現金管理處理平台，投資花旗銀行面向企業的直接網上銀行產品，我們的花旗直接業務現金客戶數量比2001 年增加了350%。

So just a couple of very specific areas we've identified we wanted to invest.

所以我們只確定了幾個非常具體的領域我們想要投資。

We started those investments a year or a year and half ago and we're now beginning to see real result in payoffs from that.

我們在一年或一年半前就開始了這些投資，現在我們開始看到真正的回報。

We can begin to see also on the next page, page 9, the kind of growth in customer balances we are continuing to get as a result of these types of investments whether it's 27 percent increase in managed receivables for the cards business globally; the 25 percent increase in assets (ph) under custody per transaction services; life insurance and annuity business volumes up 23 percent, relay across the board very strong performance.

我們也可以在下一頁（第9 頁）開始看到，由於這些類型的投資，我們將繼續獲得客戶餘額的成長，無論是全球銀行卡業務的管理應收帳款成長27%，還是全球銀行卡業務的管理應收帳款成長27%？每次交易服務託管的資產 (ph) 增加 25%；壽險和年金業務量年增23%，接力全線表現十分強勁。

Asset management by the way, I should say is a little bit understated there.

順便說一句，我應該說資產管理有點低調。

We had $36 billion of assets that we were managed being on behalf of St. Paul's Travelers or actually on behalf of Travelers Group and with the acquisition of Travelers by St. Paul, they have brought the management of those back in house and we've had a termination of that contract.

我們擁有 360 億美元的資產，我們代表 St. Paul's Travelers 或實際上代表 Travelers Group 進行管理，隨著 St. Paul 收購 Travelers，他們已將這些資產的管理權帶回公司內部，我們已經該合約已終止。

So if you adjust for that asset management, asset management are up 7 percent.

因此，如果對資產管理進行調整，資產管理將成長 7%。

And corporate loans again, is an area where we tend to not look for a lot of growth in that business.

再次，企業貸款是我們往往不會尋求該業務大幅成長的領域。

On page 10, superior returns.

第 10 頁，超額報酬。

Our return on capital continues to be quite high, again on an adjusted basis, our business has earned well above our cost of equity in each of our businesses.

我們的資本報酬率仍然很高，同樣在調整後的基礎上，我們的業務獲利遠高於我們每項業務的股本成本。

You can see proprietary investments which had been a lag in the previous season now its 30 percent on a return on risk capital and 28 percent on our return on invested capital.

您可以看到上一季滯後的自營投資現在風險資本回報率為 30%，投資資本回報率為 28%。

We had an increase in our overall risk capital for the Company from the previous quarter, and that's a result of credit risk increasing as we closed the KorAm acquisition as well as increasing our consumer loan portfolio.

與上一季相比，我們公司的整體風險資本有所增加，這是由於我們完成了對 KorAm 的收購以及增加了我們的消費貸款組合而導致的信用風險增加。

So that increased our credit risk.

這增加了我們的信用風險。

Our market risk was actually down as a result of the Samba sale and operational risk increased as a result of the settlements that we announced during the quarter.

由於 Samba 出售，我們的市場風險實際上有所下降，而我們在本季宣布的和解協議導致營運風險增加。

Let me spend a couple of minutes on some of the details by products, starting on page 11.

讓我花幾分鐘時間介紹一下從第 11 頁開始的產品的一些詳細資訊。

First of all cards; in cards we've maintained our strategy which has been focused on changing the marketing proposition to that of identity theft for protection from bulk and (ph) transfers.

首先是卡片；在卡片方面，我們維持了我們的策略，重點是將行銷主張改為身份盜竊，以防止批量和（ph）轉帳。

As a result of that, we've seen a very nice increase in the sales per active account of the cards business, so what is happening is people are pulling out, consumers are pulling out the Citigroup card, the Citibank card rather than their other cards because they recognize the better theft protection -- identity theft protection that we provide at Citi.

因此，我們看到卡片業務的每個活躍帳戶的銷售額出現了非常好的增長，所以正在發生的事情是人們正在退出，消費者正在退出花旗集團卡，花旗銀行卡而不是他們的其他卡卡，因為它們認可我們在花旗提供的更好的防盜保護——身分防盜保護。

As well as we are seeing an increase in the applications for new cards and the interest in new cards so we think that is beginning to pay off.

我們看到新卡申請量和對新卡的興趣增加，因此我們認為這已經開始得到回報。

At the same time, we are integrating Sears and Home Depot.

同時，我們正在整合西爾斯和家得寶。

Its performing extremely well, the integration is happening in a way that's where it cost takeouts (ph) are happening more quickly and at a greater degree than what we had expected and credit is actually performing better than what we expected.

它的表現非常好，整合的發生方式使得成本外賣（ph）發生得比我們預期的更快、程度更大，而且信貸的表現實際上比我們預期的要好。

For those portfolios, those businesses are outperforming what we had expected so far, so that is going very well.

對於這些投資組合，這些業務的表現超出了我們迄今為止的預期，因此進展非常順利。

And of course the credit loss ratio in cards is continuing to improve and delinquencies continue to improve as well.

當然，信用卡的信用損失率正在持續改善，拖欠率也持續改善。

In retail banking, the bottom piece of the chart there you can see that we had a 15 percent overall increase in income and you can see a big difference between the 50 percent growth in International and the 2 percent growth in North America.

在零售銀行業務中，在圖表的底部，您可以看到我們的整體收入成長了 15%，並且您可以看到國際業務 50% 的成長與北美 2% 的成長之間存在巨大差異。

In North America, there were a couple of specific issues there.

在北美，存在一些具體問題。

Although we had strong mortgage originations which are up 24 percent to $29 billion, so that was a very good positive.

儘管我們的抵押貸款發放量強勁，成長了 24%，達到 290 億美元，但這是一個非常好的積極因素。

And we had core deposits in branches up 12 percent.

我們分行的核心存款增加了 12%。

We had checking accounts up 20 percent, and we had consumer loan applications up 40 percent, so those are all very good things.

我們的支票帳戶增加了 20%，消費貸款申請增加了 40%，所以這些都是非常好的事情。

At the same time we adopted during the quarter SAB 105 which cost us $35 million on the revenue line.

同時，我們在本季採用了 SAB 105，這導致收入損失了 3500 萬美元。

That's an adjustment and we will have that income show or that revenue show up later on so it is a timing of that revenue.

這是一項調整，我們將顯示該收入或稍後顯示該收入，因此這是該收入的時間表。

We also had some ineffectiveness on our hedge and our consumer assets business that cost us $80 million as well.

我們的對沖和消費資產業務也存在一些效率低的情況，也損失了 8,000 萬美元。

Internationally, really strong performance across the board.

在國際上，整體表現確實強勁。

Investment sales were up 21 percent, deposits were up 21 percent, so a very strong performance there.

投資銷售成長了 21%，存款成長了 21%，表現非常強勁。

In Consumer Finance, again you can see a different story;

在消費金融領域，你又可以看到不同的故事；

North America up 33 percent so a very nice turnaround in the growth of the North American business as we've begun to grow the loans.

北美成長了 33%，隨著我們開始增加貸款，北美業務的成長出現了非常好的轉變。

Average loans were up 11 percent in the U.S., so a very strong performance there.

美國的平均貸款成長了 11%，表現非常強勁。

And credit performance continues to improve as well and forward indicators look good.

信貸表現也持續改善，前瞻性指標看起來不錯。

And International, you can see it shows as down 23 percent but obviously that includes the $94 million after tax or reserve released in Japan from a year ago.

至於國際，你可以看到它顯示下降了 23%，但顯然這包括日本一年前釋放的 9,400 萬美元的稅後或儲備金。

So if you adjust for that, International was up strongly as well.

因此，如果對此進行調整，國際股也會強勁上漲。

So actually a very strong performance from consumer finance.

因此，消費金融其實表現非常強勁。

Corporate investment banking on the next page, our record quarterly earnings for capital markets and banking.

下一頁的企業投資銀行業務是我們資本市場和銀行業務創紀錄的季度收益。

We continue to invest in the equities platform, (indiscernible) announced the acquisition of Lava Trading, continue to invest in derivative systems, continue to invest to work with hedge funds better.

我們繼續投資股票平台，（音頻不清晰）宣布收購Lava Trading，繼續投資衍生性商品系統，繼續投資與對沖基金更好地合作。

We had record results in the fixed income markets business and foreign exchange trading commodities and securitization.

我們在固定收益市場業務以及外匯交易商品和證券化方面取得了創紀錄的業績。

And just about record results in fixed income markets overall.

整個固定收益市場的業績幾乎創紀錄。

So a very strong performance there.

所以那裡的表現非常強勁。

Equity markets were challenged for the quarter.

本季股市面臨挑戰。

And that was a result of the fact that you saw a decrease in volatility in derivatives during the quarter.

這是因為本季衍生性商品波動性下降。

You saw a decrease in trading in tax trading business, and we saw a decrease in customer foreign exchange trading in the equity markets business as well.

您看到稅務交易業務的交易量減少，我們也看到股票市場業務中的客戶外匯交易量減少。

As a result of that, the equity markets income was down from last quarter substantially and down from the year ago.

因此，股票市場收入較上季大幅下降，較去年同期也有所下降。

The advisory business was up very nicely.

諮詢業務發展得非常好。

So we are having a very good performance in M&A.

所以我們在併購方面有非常好的表現。

We were up -- we had our share in M&A, announced M&A up strongly during the quarter.

我們的業績有所上升——我們在併購中的份額有所上升，宣布的併購在本季度強勁增長。

The pipeline looks good on M&A equity underwriting and debt underwriting.

併購股權承銷和債務承銷方面的管道看起來不錯。

So we feel good about the future of the investment banking revenue as well.

因此，我們對投資銀行收入的未來也感到樂觀。

Transaction services; we had record earnings there.

交易服務；我們在那裡獲得了創紀錄的收入。

I talked a bit about that earlier.

我之前談過這一點。

Very strong growth in customer balances, very good cost control happening in the business, very good credit this quarter with a release of $74 million during the quarter.

客戶餘額成長非常強勁，業務成本控制非常好，本季信用非常好，本季釋放了 7,400 萬美元。

We expect very good things in the future out of the business as well.

我們也期望該業務未來能取得非常好的成績。

On the next page in terms of our investment banking marketshares, we've for the 11th consecutive quarter have been number 1 in global debt and equity underwriting.

就我們的投資銀行市佔率而言，我們已連續 11 個季度在全球債務和股票承銷領域排名第一。

Maintain a number 1 position in long-term debt; maintain number 3 in global equity; and number 4 in announced and completed M&A.

長期債務保持第一；維持全球股權第三名；在已宣布和已完成的併購中排名第四。

You can see our share in announced M&A moved up strongly during the quarter.

您可以看到我們在已宣布的併購中所佔的份額在本季強勁上升。

The backlog as I mentioned before, strengthened throughout the quarter.

正如我之前提到的，整個季度的積壓情況有所加強。

Its the highest it's been all year.

這是全年最高的。

So we are encouraged or cautiously optimistic about if that backlog comes to fruition, that we will begin to see increased activity on the investment banking side as we get into the second half of the year.

因此，如果積壓的訂單得以實現，我們感到鼓舞或謹慎樂觀，隨著進入今年下半年，我們將開始看到投資銀行的活動增加。

Private Client Services continued to have the industry leading profit margins, 22 percent.

私人客戶服務持續保持業界領先的利潤率（22%）。

Revenues were up from a year ago but that was because fee-based revenues were up, transaction revenues have actually declined from last year and declined significantly from last quarter as you saw individual investors doing less trading than what we saw at the beginning at the year.

收入比一年前有所增加，但這是因為基於費用的收入增加了，交易收入實際上比去年有所下降，並且比上季度大幅下降，因為你看到個人投資者的交易量比我們年初看到的要少。

Fee based assets up $222 billion at this point.

目前，收費資產增加了 2,220 億美元。

The business is performing quite well.

業務表現相當不錯。

We expect to see a flat FC (ph) count going forward.

我們預計未來 FC (ph) 計數將持平。

We've seen lower attrition than what we had anticipated.

我們發現人員流失率低於我們的預期。

We will focus on keeping the very good FCs that we have and selectively hiring to bring in only top-notch FCs into the business.

我們將專注於保留我們擁有的非常好的FC，並有選擇性地招聘，只將頂尖的FC引入業務。

The next page, life insurance and annuities -- business volumes up 23 percent, retail annuities and net written premiums up 23 percent Life; net-written premiums up 47 percent. $1.1 billion in Japan variable annuity sales continue to see very good performance out of our Japanese business and expect good income growth out of this business going forward now that the fundamentals have turned around from the low interest rate -- loan and realized investment environment.

下一頁是人壽保險和年金——業務量增長 23%，零售年金和淨承保保費增長 23%淨承保保費成長 47%。日本可變年金銷售額為 11 億美元，我們的日本業務繼續表現出色，並且由於基本面已從低利率貸款和實現的投資環境中轉變，預計該業務未來的收入將出現良好增長。

We had this increase despite taking from realized investment losses during this quarter.

儘管我們在本季扣除了已實現的投資損失，但我們還是實現了這一成長。

Private Bank, a very similar story to what you saw in the Private Client business where fee-based revenues were performing well but transactional revenues were down 12 percent from a year ago and that was primarily in the International businesses.

私人銀行，與您在私人客戶業務中看到的情況非常相似，其中基於費用的收入表現良好，但交易收入比一年前下降了 12%，而且主要是在國際業務中。

Our private bank in Asia Latin America and the Middle East and Africa had lower transaction revenues as customers reduced the amount of trading they were doing.

由於客戶減少了交易量，我們在亞洲、拉丁美洲、中東和非洲的私人銀行的交易收入較低。

From the asset management business, overall revenues were up 9 percent.

資產管理業務的整體收入成長了 9%。

We had good net flows in the business (technical difficulty) management assets under management again adjusted for the cap assets were up 7 percent and so the asset management business itself performed well, it was up 12 percent in income; however, the retirement services businesses was affected by a charge for net claims and some operating losses that were mandated in Argentina.

我們在業務上有很好的淨流量（技術難度）管理資產規模再次調整，因為上限資產增長了7%，所以資產管理業務本身表現不錯，收入增長了12%；然而，退休服務業務受到阿根廷規定的淨索賠費用和一些營運虧損的影響。

And that cost us $25 million after-tax for that business, for the retirement services business.

退休服務業務的稅後成本為 2,500 萬美元。

We move to credit on the nest page on the consumer side really only a good story at this point.

在這一點上，我們轉向消費者方面的嵌套頁面實際上只是一個好故事。

Cards, credit, consumer finance credit and retail banking credit literally around the world is improving with the perhaps single exception of Germany, which we talked about before but we are beginning to see a turn in that on the forward-looking indicators.

世界各地的卡片、信用卡、消費金融信貸和零售銀行信貸實際上都在改善，也許德國是個例外，我們之前談過，但我們開始在前瞻性指標上看到這種情況的轉變。

If you look at deliquencies, the story is even stronger.

如果你看看拖欠率，這個故事就更明顯了。

You see a very significant improvement in 90 days past due for retail banking for consumer finance and for cards and again we see this literally in every region of the world.

您將看到零售銀行、消費金融和銀行卡的逾期 90 天有了非常顯著的改善，我們在世界每個地區都看到了這一點。

So a very strong performance going on in credit.

因此，信貸方面的表現非常強勁。

Bankruptcies in North America, which is something we watch very closely, has a fairly significant impact on credit losses were down 4 percent this quarter versus a year ago.

我們密切關注的北美破產事件對信貸損失產生了相當大的影響，本季與去年同期相比下降了 4%。

So that's a very good sign.

所以這是一個非常好的跡象。

In Japan, bankruptcies are down 54 percent from a year ago, so we believe that Japan has really turned the quarter in terms of its credit cost.

在日本，破產率比一年前下降了 54%，因此我們相信日本的信貸成本確實在本季度實現了扭轉。

Germany is really the only place where credit issues continue.

德國確實是唯一一個信貸問題持續存在的國家。

We expect to see that turn as we get to the third and fourth quarter of this year.

我們預計到今年第三季和第四季就會出現這種轉變。

The corporate side, if it could be any better, is actually an even better story than the consumer side.

企業方面，如果可以做得更好的話，其實是比消費者方面更好的故事。

You can see in terms of NCLs, we actually had a net recovery during the quarter, and cash basis loans decreased another $294 million from last quarter.

你可以看到，就 NCL 而言，我們實際上在本季實現了淨復甦，現金基礎貸款比上季又減少了 2.94 億美元。

And that is despite the addition of $238 million for the KorAm acquisition, so you can see the underlying improvement of the portfolio was even stronger than what is shown on this page.

儘管為 KorAm 收購增加了 2.38 億美元，但您可以看到投資組合的根本改善甚至比本頁顯示的還要強勁。

The troubled industries, the telecom, the power, the transportation in the troubled regions like Latin America have stabilized.

拉丁美洲等陷入困境的地區的電信、電力、交通等陷入困境的行業已經穩定下來。

A lot of the debt restructurings have now been completed.

許多債務重整現已完成。

We are not seeing large numbers of new distressed situations.

我們沒有看到大量新的困境。

From the peak, which was the second quarter of '03, our nonperforming loans have dropped 38 percent, about 1.5 billion from the second quarter of '03.

從 03 年第二季的高峰開始，我們的不良貸款下降了 38%，比 03 年第二季下降了約 15 億。

So if these global credit trends stay positive and if the distressed debt markets continue to expand, (indiscernible) a good way for us to be able to exit some distressed debt situations, this nonperforming loan portfolio may actually decline further.

因此，如果這些全球信貸趨勢保持積極，並且如果不良債務市場繼續擴大（難以辨別），這是我們能夠擺脫某些不良債務狀況的好方法，那麼不良貸款組合實際上可能會進一步下降。

You can see that we had a $350 million general reserve release, and that occurred $276 million in capital markets in banking and $74 million in transaction services.

您可以看到，我們釋放了 3.5 億美元的一般準備金，其中 2.76 億美元用於銀行資本市場，7,400 萬美元用於交易服務。

And then you can see by region how that was allocated, 200 million in Mexico, etc.

然後你可以看到按地區是如何分配的，墨西哥有 2 億，等等。

Page 18 in terms of our capital.

第18頁就我們的資本而言。

As Chuck mentioned, total stockholders equity in trust preferred now at 104.5.

正如 Chuck 所提到的，優先信託的股東權益總額現在為 104.5。

Our Tier 1 ratio despite taking the charge that we took this quarter remains above 8 percent.

儘管我們承擔了本季的費用，但我們的一級比率仍然高於 8%。

Total capital ratio remains above 11 percent.

總資本比率維持在11%以上。

GAAP (ph) assets just short of 1.4 trillion.

GAAP (ph) 資產接近 1.4 兆美元。

As you can see, our return on common equity again adjusted for the charge in the sale of Samba at over 20 percent once again this quarter.

如您所看到的，本季我們的普通股回報率再次根據 Samba 出售費用進行調整，再次超過 20%。

Our priorities as we look out toward the second half of the year are things that I think you've already heard Chuck and I talk about on a fairly regular basis.

展望今年下半年，我們的優先事項是我認為您已經經常聽到查克和我談論的事情。

Number 1, revenue growth, organic revenue growth.

第一，收入成長，有機收入成長。

Strong growth in customer balances that we've seen so far this year, we want to continue.

今年到目前為止，我們看到客戶餘額強勁成長，我們希望繼續下去。

Executing our strategic initiatives to make sure that the investments that we are making are paying off in increased revenue with customers.

執行我們的策略計劃，以確保我們所做的投資能為客戶增加收入帶來回報。

Secondly, investing to improve our competitiveness, we've talked about a lot of this in equity trading and derivatives to the international branch expansion, etc.

其次，投資提高我們的競爭力，我們在股票交易、衍生性商品、國際分公司擴張等方面談了很多。

Capital allocation, we've talked about the garage sale which is exiting the non-strategic investments, the investments like Samba where we have a minority share of a business, we can put that capital to better use elsewhere.

資本配置，我們已經討論了車庫出售，它正在退出非戰略投資，像桑巴這樣的投資，我們擁有少數業務的股份，我們可以把這些資本更好地用在其他地方。

And so we are exiting those things and putting that capital to work in things like the investments in the equity trading business, things like buying Lava Trading, things like buying foreign financial like the Principal Residential Mortgage and like KorAm.

因此，我們正在退出這些事情，並將這些資金投入到股權交易業務投資、購買 Lava Trading 等事情、購買外國金融機構（如 Primary Residential Mortgage 和 KorAm）等事情上。

Integration excellence, it kind of goes by the wayside now that people expect us to execute well on acquisitions.

卓越的整合，現在人們期望我們在收購方面表現出色，它有點被拋在了一邊。

That isn't always the way the industry performs, but it is certainly what we expect here.

這並不總是行業的表現方式，但這肯定是我們所期望的。

And I don't want to minimize how difficult it is to make sure that we continue to integrate acquisitions in a way that drives real value for our shareholders.

我不想低估確保我們繼續以一種為股東帶來真正價值的方式整合收購的難度。

So far, we've had a fabulous experience with Sears and Home Depot, both performing ahead of plan, with Washington Mutual Finance performing ahead of plan.

到目前為止，我們在西爾斯(Sears) 和家得寶(Home Depot) 方面獲得了極好的體驗，兩家公司的業績都超出了計劃，華盛頓互惠金融(Washington Mutual Finance) 的業績也超出了計劃。

We expect the same for KorAm.

我們對大韓航空也有同樣的期望。

KorAm actually was modestly accretive to our earnings already for the second quarter, even though we only owed them for part of the quarter.

實際上，大韓航空已經在第二季度略微增加了我們的收入，儘管我們只欠了他們本季的部分時間。

We expect it to go well.

我們希望一切順利。

The strike out there has been settled so we are very focused on making sure that integration goes well in addition.

罷工已經解決，因此我們非常專注於確保整合順利進行。

But integration excellence has been a hallmark of this Company and we're focused on making sure that's the case going forward.

但卓越的整合一直是該公司的標誌，我們致力於確保未來的發展也是如此。

And then finally, superior shareholder returns driving continued double-digit earnings growth in EPS and maintaining the high dividend yield.

最後，卓越的股東回報推動每股獲利持續兩位數成長，並維持高股息殖利率。

Outlook for the second half of the year, on page 20, Global Consumer business we see continued strong revenue momentum, especially internationally.

下半年展望，第 20 頁，全球消費者業務，我們看到收入動能持續強勁，尤其是在國際市場。

But we see stable to most likely improving credit quality in the second half of the year and we expect to make continue to investments in advertising and marketing and new products and technology to continue to build the business and build new branches outside the U.S. and possibly in the U.S. as well.

但我們認為下半年信貸品質將保持穩定，甚至很可能有所改善，我們預計將繼續在廣告和行銷以及新產品和技術方面進行投資，以繼續發展業務並在美國境外（甚至可能在美國）建立新分支機構。美國也是如此。

In the corporate investment banking business, again, we expect stable to perhaps an improving credit environment, again at this point, all signs are positive.

在企業投資銀行業務方面，我們再次預期信貸環境將穩定甚至改善，目前所有跡像都是正面的。

We see an improved investment making backlog.

我們看到投資積壓有所改善。

We are expecting to see a moderating fixed-income environment.

我們預計固定收益環境將會放緩。

I've talked about the net flows now moving to be out of fixed income into equities and so we would expect that would continue.

我已經談到淨流量現在從固定收益轉向股票，因此我們預計這種情況將持續下去。

We expect to see continued revenue moment and income momentum in the transaction services business.

我們預期交易服務業務將持續出現營收成長和營收成長動能。

Private Client looks like customer trading activity is moderating.

私人客戶看起來客戶交易活動正在放緩。

It did moderate in the second quarter.

第二季度確實有所放緩。

I think that's continued as we see things in July.

我認為從我們七月看到的情況來看，這種情況仍在繼續。

And so we will have to see whether the retail investor goes back to a high level of trading or not but right now it's quite moderate.

因此，我們必須看看散戶是否會回到高水準的交易，但目前情況相當溫和。

But we continue to increase the client assets.

但我們繼續增加客戶資產。

We've had $11 billion of positive net flows during the quarter.

本季我們的淨流量為 110 億美元。

We'd expect to continue to grow the client assets and maintain our productive FC headcount.

我們希望繼續增加客戶資產並維持我們高效的 FC 員工人數。

Investment management; the business volume growth in life and annuity is going to begin to pay off in increased income growth.

投資管理;壽險和年金業務量的成長將開始為收入成長帶來回報。

We expect from the private bank to continue to build the fee-based revenues, and we expect to continue to have positive or retail institutional flows in the asset management business but each of these businesses will be impacted by what happens with interest rates; by what happens with the equity markets; and by what happens with the trading investments by customers.

我們預計私人銀行將繼續增加收費收入，並且我們預計資產管理業務將繼續出現正向或零售機構流動，但這些業務中的每一項都將受到利率變化的影響；股票市場發生的情況；以及客戶交易投資的情況。

And in proprietary investment activities, we had an extremely strong performance this quarter.

在自營投資活動中，我們本季的表現非常強勁。

We'd expect that to moderate a bit as we get into the second half of the year but we do see a continued favorable investment environment for investment activities.

我們預計，隨著進入下半年，這種情況會有所緩和，但我們確實看到投資活動持續有利的投資環境。

With that, why don't we turn it over to any questions that people have on the call.

既然如此，我們為什麼不把它轉交給人們在電話會議中提出的任何問題呢？

(OPERATOR INSTRUCTIONS) Guy Moszkowski.

（操作員說明）Guy Moszkowski。

Merrill Lynch.

美林。

Good morning.

早安.

Question for you on the -- I want to try to relate the sort of operating leverage issue and the reserve drawdown to some extent.

問你的問題是－我想嘗試在某種程度上將經營槓桿問題與準備金減少連結起來。

And I appreciate that from a very topline perspective the operating leverage was indeed positive, the 9 percent revenue growth versus the 7 percent, but if you dig down into a number of the operating units, for example, in the various Global Consumer unit -- and a lot of those units you really did see that the expense growth was ahead of the revenue growth.

我很欣賞，從最重要的角度來看，營運槓桿確實是正面的，收入成長了 9%，而收入成長了 7%，但如果你深入研究一些營運部門，例如，各個全球消費者部門——在許多單位中，您確實看到支出成長領先於收入成長。

And obviously much more than offset by the impact of the better credit quality and the reserve drawdown.

顯然，信貸品質改善和準備金減少的影響遠遠超過了這一影響。

Is there a case to be made that some of the spending ahead of revenue is basically a sort of a reinvestment of limited time gains that you are getting from the reserve drawdown?

是否有理由認為，一些先於收入的支出基本上是從儲備金提取中獲得的有限時間收益的再投資？

Or is there some pressure on the operating economics of the businesses that goes longer-term than that?

或者企業的經營經濟是否有比這更長期的壓力？

I think it's actually Guy, neither one of those things.

我認為實際上是蓋伊，兩者都不是。

I think what it is is we don't try to take a single approach to managing every one of our businesses.

我認為我們不會嘗試採用單一方法來管理我們的每一項業務。

We try to be thoughtful about those businesses where one should be investing more than others and those businesses where one doesn't need to invest that much at any particular moment in time.

我們試著考慮那些應該比其他人投資更多的企業，以及那些在任何特定時刻不需要投資那麼多的企業。

So right now, especially in the international businesses and especially in the international consumer businesses, we have same for the past few quarters a very opportune time for investment.

因此，現在，特別是在國際業務方面，特別是在國際消費業務方面，過去幾季我們同樣面臨非常好的投資時機。

And so we're not going to hold every single one of our businesses to a standard that says you need to grow revenue growth faster than expense growth.

因此，我們不會讓我們的每一項業務都遵循一個標準，要求收入成長速度快於支出成長速度。

In some of those areas, we are going to consciously make investments; we are going to increase the investment in marketing or build branches because that is what is going to drive future revenue growth for the Company.

在其中一些領域，我們將有意識地進行投資；我們將增加行銷投資或建立分支機構，因為這將推動公司未來的收入成長。

And I think that is what you are seeing happen in a number of those businesses internationally.

我認為這就是您在國際上許多此類企業中看到的情況。

I also want to say that the positive operating leverage is something that we focus on and we talk about it internally a lot and we are committed to it for the overall Company -- not necessarily business by business, but for the overall Company because I want to highlight also for things like the cards business for example is actually a connection between credit and revenue growth.

我還想說，積極的營運槓桿是我們關注的事情，我們在內部經常討論它，我們致力於整個公司的實現——不一定是逐個業務，而是整個公司，因為我希望例如，還需要強調的是信用卡業務等實際上是信貸和收入成長之間的連結。

And so in an environment where credit is getting better, that means people are actually paying off their balances at a higher rate.

因此，在信用狀況不斷改善的環境下，這意味著人們實際上正在以更高的利率還清餘額。

It means they are on time when they pay so their fee revenue for late fees goes down.

這意味著他們按時付款，因此滯納金的費用收入會下降。

Those things both affect revenue.

這些因素都會影響收入。

At the same time, it improves credit so there's a dynamic there, and we are happy to have an improvement in credit even if it causes a bit of a moderating of revenue in those particular cases.

同時，它改善了信用，因此存在活力，我們很高興信用得到改善，即使在某些特定情況下這會導致收入略有下降。

Thanks, that was helpful.

謝謝，這很有幫助。

Let me ask you a little bit about the decisions on some of the portfolio reshufflings so to speak in terms of first of all the announcement about Fubon and Nikko.

讓我問一些投資組合重組的決定，首先是關於富邦和日興的公告。

Can you talk a little bit more about why you decided that those were -- that those were investments that you should undo -- was it -- you alluded to one reason being returns, one reason being not a fit?

你能多談談為什麼你決定這些是──那些是你應該撤銷的投資──是嗎──你提到一個原因是回報，一個原因是不適合？

Maybe you can tell us specifically what those two -- a little bit about why and what you are doing alternatively in those two countries and then I had a question about Lava.

也許你可以具體告訴我們這兩個國家是什麼 - 一點關於為什麼以及你在這兩個國家交替做的事情，然後我有一個關於熔岩的問題。

This is Chuck.

這是查克。

I will take a crack at the Nikko and Fubon ones.

我會嘗試一下 Nikko 和 Fubon 的。

In both cases, these were investments made at a time when we thought that a particular outcome would result from the investment.

在這兩種情況下，這些投資都是在我們認為投資會產生特定結果時進行的。

In one case that occurred and the other case it didn't occur.

在一種情況下發生了，而在另一種情況下則沒有發生。

The Nikko investment was made at the same time that we entered into the joint venture with Nikko which is very robust and ongoing and is one of our proudest assets.

對 Nikko 的投資是在我們與 Nikko 成立合資企業的同時進行的，該合資企業非常穩健且持續，是我們最引以為傲的資產之一。

At that point in time, the environment at Nikko was one which where the investment was very useful, I would say, from their standpoint.

我想說，從他們的角度來看，當時日航的環境是投資非常有用的。

At this point in time, it is not nearly as important from their standpoint.

目前，從他們的角度來看，這並不那麼重要。

It is not in any way connected to the joint venture.

它與合資企業沒有任何關係。

And so from our standpoint, it not being as necessary or important to our partner and involving less than an adequate return, it was a simple matter of making a financial judgment on reducing that stake.

因此，從我們的角度來看，這對我們的合作夥伴來說並不必要或重要，而且涉及的回報也不夠充分，這只是對減少股權做出財務判斷的簡單問​​題。

It has nothing at all to do with any diminished commitment to our joint venture with Nikko.

這與我們對與 Nikko 合資企業的承諾的減少毫無關係。

That's as I say, very robust and very strong.

正如我所說，非常強大、非常強大。

In terms of the Fubon relationship, that was entered into at a time when we thought we would with their help be expanding a P&C presence, primarily also some life but P&C presence primarily in a wide range of Southeast Asian countries.

就富邦關係而言，當時我們認為我們將在他們的幫助下擴大財產和意外險的業務，主要是一些人壽保險，但財產和意外的業務主要在廣泛的東南亞國家。

And for a lot of reasons, that didn't work.

但由於多種原因，這並沒有奏效。

And so for the last year or two, maybe a little longer, that has simply been a pretty dormant investment, really leading nowhere.

因此，在過去的一兩年，也許更長一點的時間裡，這只是一項相當休眠的投資，實際上沒有任何結果。

And that is an easy one to make a decision on.

這是一個很容易做出決定的決定。

That one was in some ways a very simple decision to make.

從某些方面來說，這是一個非常簡單的決定。

Our commitment to the region obviously, we have a very strong investment in Taiwan where Fubon is based, a pre-existing investment in Taiwan and to the extent we think of Taiwan in some sense as a part of a Greater China strategy for the future, our investment in that Greater China strategy, Taiwan, Hong Kong, Mainland, I think we are ahead of anybody else from a foreign standpoint in terms of our investment and commitment there.

我們對該地區的承諾顯然，我們在富邦總部所在的台灣有非常強大的投資，在台灣已有投資，並且在某種程度上我們認為台灣在某種意義上是未來大中華戰略的一部分，我們在大中華區策略、台灣、香港、大陸的投資，我認為從外國的角度來看，我們在這些地區的投資和承諾領先於其他任何人。

And I personally as I say, have been out to that region almost once a month.

正如我所說，我個人幾乎每個月都會去該地區一次。

In terms of Japan, the Nikko investment obviously, as I say, doesn't have anything to do with a commitment to Japan.

就日本而言，正如我所說，日興投資顯然與對日本的承諾沒有任何關係。

We -- all of our businesses are represented there and that's an area we would expect to grow.

我們所有的業務都在那裡設有代表，這是我們期望成長的領域。

I hope that puts in some context that part of the garage sale.

我希望這能將車庫拍賣的一部分放在一定的背景下。

It does.

確實如此。

Thanks.

謝謝。

And then finally, just on Lava.

最後，就在熔岩上。

Maybe you can explain little bit more how you intend to integrate that business or not with your institutional equities business and what you saw there is that you thought would help that business?

也許您可以多解釋一下您打算如何將該業務與您的機構股票業務整合，以及您認為這會對該業務有所幫助？

Well I will take a crack at it and ask Todd to supplement.

好吧，我會嘗試一下並請托德補充。

I think that we're going to run that as a pretty separate business within Citigroup, within the equities franchise.

我認為我們將在花旗集團的股票專營權範圍內將其作為一項相當獨立的業務來運作。

So I think that it will maintain its existing characteristics and its existing excellence.

所以我認為它將保持其現有的特色和現有的卓越性。

In terms of the strategic reasons for doing it, we've talked for a number of quarters now about an historic under investment in our equities business and our determination to reverse that.

就這樣做的戰略原因而言，我們已經討論了幾個季度我們股票業務的歷史性投資不足以及我們扭轉這種情況的決心。

I see this as leapfrogging a process of build which would otherwise have taken a much more substantial period of time.

我認為這是跨越式建置過程，否則會花費更長時間。

And basically picking up not only the technology but the people in an established market position.

基本上，不僅要獲得技術，還要獲得已確立的市場地位的人才。

So I think it's subject to anything toggled (ph) like that, I think it was very good addition for us and a very strong commitment to our -- reinvestment in our equities franchise.

所以我認為它會受到任何類似的切換（ph）的影響，我認為這對我們來說是非常好的補充，也是對我們股票特許經營權再投資的非常堅定的承諾。

Todd, do you want to add to that?

托德，你想補充嗎？

Yes, Guy, we really saw that as the best technology in direct market access trading software out there which we think the electronic trading market is going to grow from about 8 percent of total trading today to something more like 14 or 15 percent in the next couple of years.

是的，蓋伊，我們確實看到了直接市場准入交易軟體中最好的技術，我們認為電子交易市場將從目前佔總交易量的 8% 左右增長到未來的 14% 或 15% 左右許多年。

We see that as an important technology.

我們認為這是一項重要的技術。

We saw them as being the best at it.

我們認為他們是最擅長的。

We saw that as the growth need for the marketplace.

我們認為這是市場的成長需求。

One of the issues with Lava Trading is that they have an open architecture system, in other words, as a trader you can choose to execute through a number of the different banks or brokers and we plan on keeping that system.

Lava Trading 的問題之一是他們有一個開放的架構系統，換句話說，作為交易者，您可以選擇透過許多不同的銀行或經紀人執行交易，我們計劃保留該系統。

We are not looking to have everything then go through Citigroup as a result of us buying Lava Trading.

我們不希望透過花旗集團購買 Lava Trading 來獲得所有的東西。

We want to keep that open architecture system.

我們希望保持開放的架構系統。

We think that is an important part of the technology.

我們認為這是該技術的重要組成部分。

Frankly, we think that is where trading will be headed anyway.

坦白說，我們認為這就是交易的發展方向。

But we can take advantage of their excellence in this technology and expand that into other areas for that and also help them invest to expand that type of technology to other areas of trading as well as to begin to move more to the buy side.

但我們可以利用他們在這項技術方面的卓越優勢，並將其擴展到其他領域，並幫助他們進行投資，將此類技術擴展到其他交易領域，並開始更多地向買方轉移。

Thank you very much, that is helpful.

非常感謝，這很有幫助。

By the way, Guy, I did read your note from yesterday or the day before on the pre-note on our earnings and I have to congratulate you on your theatrics and your analysis on our corporate investment banking revenues.

順便說一句，蓋伊，我確實讀過您昨天或前天關於我們收益的預說明中的說明，我必須祝賀您的表演以及您對我們企業投資銀行收入的分析。

Good job.

好工作。

UBS.

瑞銀。

Question on balance sheet, Todd.

關於資產負債表的問題，托德。

First memo on that -- what is the pickup in other assets -- anything particular?

關於這一點的第一份備忘錄——其他資產的回升是什麼——有什麼特別的嗎？

Give me one second to get the balance sheet out.

請給我一點時間，把資產負債表拿出來。

I love the fact that you've already got to page 30.

我很高興你已經讀到第 30 頁了。

The other asset piece, we had a relatively low amount of securitization during the quarter in the credit card.

另一方面，本季我們的信用卡證券化金額相對較低。

Most of what that is is the warehouse for securitization -- the growth in that is increased in our warehouse for credit card securitization that will then occur during the third quarter.

其中大部分是證券化倉庫——我們的信用卡證券化倉庫的成長將在第三季發生。

I'm assuming that the pickup on the corporate loan side has to do with KorAm?

我假設企業貸款方面的回升與韓美有關？

With out that pickup, corporate loans would have been down slightly.

如果沒有這種回升，企業貸款將會略有下降。

Cool.

涼爽的。

And then more importantly, leverage ratio down at 4.9 percent.

更重要的是，槓桿率下降至4.9%。

On the asset side growing, equity came in 3.5 billion even though you had a billion in net income.

在資產方面不斷成長，儘管淨收入有 10 億，但股本卻達到了 35 億。

The difference is the accumulated other change in equity line?

差異是權益線的累計其他變化嗎？

Yes.

是的。

3.3 billion.

33億。

Is that unrealized gains?

這是未實現的收益嗎？

That is the FAS 115 security.

這就是 FAS 115 安全性。

So it's the -- things like our insurance assets and where we have -- where we have investment in securities that are not mark to market in the income statement that the balance sheet.

因此，就像我們的保險資產以及我們所擁有的證券投資一樣，這些證券在損益表中沒有按市值計價，而是在資產負債表中。

We essentially get a spread on that versus what our customers get and so those don't get marked with the income statement but the value of those move up-and-down with interest rates.

我們基本上得到了與客戶得到的利差，因此這些不會在損益表中標記，但它們的價值會隨著利率的變化而上下波動。

And there was also an impact on the equity from the weakening peso, which we don't completely hedge our equity in (indiscernible) so a lot of that is goodwill.

比索疲軟也對股本產生了影響，我們沒有完全對沖我們的股本（難以辨別），所以其中很大一部分是商譽。

So we don't hedge the goodwill part of that.

所以我們不會對沖其中的商譽部分。

So that reduced our goodwill but also obviously reduced our equity.

因此，這減少了我們的商譽，但也明顯減少了我們的股本。

On the FAS 115 security, if you look back on the insurance portfolio that you detailed -- it went down which is what you'd expect with rising rates but it still a positive unrealized gain?

關於 FAS 115 證券，如果您回顧一下您詳細介紹的保險投資組合，它會下降，這是您對利率上升的預期，但它仍然是正的未實現收益？

Does this line capture just the net change and what else -- I'm not sure I understand what else is in there besides the insurance assets because I can see part of the insurance assets.

這條線是否只捕獲了淨變化以及其他什麼——我不確定我是否理解除了保險資產之外還有什麼，因為我可以看到部分保險資產。

It captures the change in the insurance assets; it also captures any other securities that are counted that way.

它捕捉保險資產的變化；它還捕獲以這種方式計算的任何其他證券。

So for example, in our treasury books, we have available for sale securities as well.

例如，在我們的財務帳簿中，我們也有可供出售的證券。

The last question is, is there something we should think that at any point you have to act on?

最後一個問題是，有沒有什麼事情是我們應該認為在任何時候都必須採取行動的？

No.

不。

So this can sit and go up-and-down if you get more negative and there is no for sale, you can sit on it for maturity?

所以，如果你變得更加負面並且沒有出售，你可以坐等成熟嗎？

I think that is right.

我認為這是對的。

In fact, on the treasury side and for other insurance companies, I would expect that they will move into a negative position as interest rates continue to increase.

事實上，在財政部和其他保險公司方面，我預計隨著利率繼續上升，它們將陷入負值。

There are a lot of banks that were already at a flat or negative position last quarter.

許多銀行上季的業績已經持平或為負。

Again I don't see that as a problem because we essentially get it spread between that and the other side of the equation which is the liability or asset side of the equation.

我再次不認為這是一個問題，因為我們本質上是把它分散在等式的另一邊（即等式的負債或資產邊）之間。

Those are matched up so we are getting a spread between the two.

這些是匹配的，所以我們在兩者之間得到了分佈。

What you are seeing here is the marked-to-market on the equity line of only one-half of that.

您在這裡看到的按市值計價的股本僅為其中的一半。

We don't mark the other half to market.

我們不會將另一半標記為市場。

Last thing and then I'm done.

最後一件事然後我就完成了。

Is the leverage ratio -- if you wanted to, you could take it up because of the pickup in trading assets and brokerage receivables, things like that.

是槓桿率——如果你願意的話，你可以提高它，因為交易資產和經紀應收帳款等的增加。

You could obviously take it down just as quick.

顯然你可以同樣快​​地把它拿下來。

How do you feel about 4.9 percent, I guess?

我猜你對 4.9% 有什麼感覺？

4.9 is around where we'd like to be.

4.9 大約是我們想要的水平。

We'd like to be in the 5 range.

我們希望處於 5 的範圍內。

We may actually bring it down a little bit further.

我們實際上可能會進一步降低它。

If you look at our international competitors who are also active in investment banking and have, as you said, large mash books, large trading accounts.

如果你看看我們的國際競爭對手，他們也活躍於投資銀行業務，並且正如你所說，擁有大量的混帳帳簿和大量的交易帳戶。

They will run more in the 3 percent kind of a range.

他們將在 3% 的範圍內運行更多。

So that's the reason it runs at what we call it a relatively low level.

這就是它運行在我們所說的相對較低水平的原因。

We may bring it down a little bit further but it purely has to do with the -- frankly it is a bit of an outdated measure.

我們可能會進一步降低一點，但這純粹與——坦白說，這是一個有點過時的措施有關。

It purely has to do with GAAP assets where if you are running a large trading book, those GAAP assets don't relate to any particular risk.

它純粹與 GAAP 資產有關，如果您經營大型交易帳戶，這些 GAAP 資產與任何特定風險無關。

Regulators aren't up in arms?

監管者不起來了嗎？

Yes.

是的。

Richard Strauss.

理查‧史特勞斯.

Deutsche Bank.

德意志銀行。

Good morning.

早安.

Todd, your $2.5 billion fixed income result was certainly a very different result than Merrill which also had June in their quarter and they were down about 22 percent.

托德，您 25 億美元的固定收益業績肯定與美林 (Merrill) 的業績有很大不同，美林 (Merrill) 的季度也有 6 月份，下降了約 22%。

It looks like they really kind of pulled off in terms of their risk profile.

看起來他們的風險狀況確實不錯。

It looks like your risk capital to the capital markets business actually went up quite a bit -- about $2.5 billion and last quarter it was flat although that's an average number.

看起來你們資本市場業務的風險資本實際上增加了很多——大約 25 億美元，上個季度持平，儘管這是平均數字。

So I guess my question is where do you finish at the end of the quarter?

所以我想我的問題是你在本季末的表現如何？

Maybe you could give us some sense there?

也許你能給我們一些啟發？

And what is your stance and what kind of opportunities are you seeing right now in -- specifically the thick markets?

您的立場是什麼？您現在在—特別是在活躍的市場—中看到了什麼樣的機會？

Let me answer the risk capital question first.

我先回答一下創投的問題。

Really there were 2 big reasons why risk capital increased and capital markets and banking and the end -- although I don't have the end of quarter number here with me, it would be higher than the average number that you see there.

實際上，風險資本增加有兩個重要原因，資本市場和銀行業以及最終的結果——雖然我在這裡沒有季度末的數字，但它會高於你在那裡看到的平均數字。

And the two reasons are; number 1, we bought KorAm so that brought risk capital at the end of the quarter that beat the average.

這兩個原因是；第一，我們購買了 KorAm，以便在季度末帶來超過平均的風險資本。

Secondly, with the charge that we took, we have an increased calculation of our operational risk because of litigation charge.

其次，隨著我們承擔的費用，我們因訴訟費用而增加了操作風險的計算。

And so that increased our operational risk for that business as well.

因此，這也增加了我們該業務的營運風險。

So those were the 2 biggest pieces.

這些是最大的兩塊。

We really didn't change much our risk-taking from the previous quarter in the fixed income business or frankly in the equity business.

與上一季相比，我們在固定收益業務或坦白說在股票業務方面的風險承擔確實沒有太大改變。

Although we haven't finished some of the borrow calculations, my guess is they will be sort of flat to down from last quarter.

儘管我們還沒有完成一些借款計算，但我的猜測是它們將比上季持平甚至下降。

What we are seeing in the business, in the fixed income markets business, or capital markets business, is a bit of transition this quarter from the core trading and fixed income into more derivatives, more commodities.

我們在固定收益市場業務或資本市場業務中看到的是，本季從核心交易和固定收益轉向更多衍生性商品、更多大宗商品。

We had very good commodities results; record commodities results, trading results this quarter.

我們的大宗商品業績非常好；本季的商品業績和交易業績創歷史新高。

So we are seeing a bit of the transition into some of the other areas of fixed income like tradings.

因此，我們看到了一些向固定收益其他領域（例如交易）的轉變。

Just a follow-up on an earlier question.

只是之前問題的後續。

With regard to -- again I know was positive operating leverage year-over-year but there was some negative operating leverage on a sequential basis in some of the businesses, North America cards.

關於－我再次知道，北美卡業務的營運槓桿同比呈正值，但某些業務連續出現一些負營運槓桿。

I just wanted to make sure this was reduced late fees?

我只是想確保這會減少滯納金？

Yes, you've got reduced late fees that happened and you also have people paying off higher balances so you are you are getting a little bit lower revenue as a result of them paying off their balances more than what we have seen in the past.

是的，滯納金減少了，而且人們還清了更高的餘額，因此，由於他們還清的餘額比我們過去看到的要多，所以你的收入會稍微低一些。

And that tends to happen when you have a better credit environment.

當你有更好的信用環境時，這種情況往往會發生。

It goes hand in hand with better credit.

它與更好的信用密切相關。

That is really what was going on in cards.

這確實是紙牌中發生的事情。

But there are two other big areas; one was principal transactions which was down fairly significantly as a result of, as I mentioned before, derivatives volumes down as well as volatility down.

但還有另外兩個大領域；一是主要交易量顯著下降，正如我之前提到的，衍生性商品交易量下降以及波動性下降。

FX trading was down, so that was driving a low result in principal transactions.

外匯交易下降，導致本金交易結果較低。

And the other area was really client trading activity.

另一個領域是真正的客戶交易活動。

Both institutional and retail and you can see that flow through in our equities capital markets, equities trading line as well as the private client services business as well as the private bank.

無論是機構還是零售，您都可以在我們的股票資本市場、股票交易線以及私人客戶服務業務以及私人銀行中看到這種流動。

Also in North America retail banking I think you alluded to hedging and also the adoption of the accounting change.

同樣在北美零售銀行業務中，我認為您提到了對沖以及會計變更的採用。

So you will recover or regain that positive leverage you expect going forward?

那麼您會恢復或重新獲得您期望的正面影響力嗎？

We would hope so.

我們希望如此。

Great.

偉大的。

Thank you.

謝謝。

Ronald Temple.

羅納德·坦普爾.

Lazard Asset Management.

拉札德資產管理公司。

If I could follow on Glenn's question in terms of the other comprehensive income -- exactly how much of the $3.2 billion swing is related to insurance?

如果我能繼續回答 Glenn 關於其他綜合收入的問題——32 億美元的波動中到底有多少與保險相關？

How much is related to your securities portfolio?

有多少與您的證券投資組合有關？

Let me just take a look at this.

讓我看一下這個。

I would say that in percentage terms, it's about half a it is due to insurance, and of the other half, about half of that is due to the foreign exchange change.

我想說，以百分比計算，大約一半是由於保險，另一半大約一半是由於外匯變化。

And about the other half is in various treasury portfolios.

大約另一半則投資於各種國債投資組合。

In the proprietary investment activities you mentioned in the text that some element of that was a small sale of the St. Paul shares?

您在文中提到的自營投資活動中，其中一些內容是小額出售聖保羅股票？

Can you quantify how much of that would be the St. Paul?

你能量化其中有多少是聖保羅嗎？

We haven't done that externally yet but it was a relatively small amount of the shares in St. Paul's.

我們還沒有在外部這樣做過，但這只是聖保羅的一小部分股份。

Last but not least, on your interest repositioning, can you give us a sense just jogging ahead of the Q of what your sensitivity position is at this point or at the end of the quarter?

最後但並非最不重要的一點是，關於您的興趣重新定位，您能否讓我們了解您目前或本季末的敏感度狀況？

At the end up last quarter we were about $600 million or so as we calculate the interest rate sensitivity.

截至上季末，我們計算利率敏感性時約為 6 億美元左右。

And we would expect that to be in that range maybe a bit higher because as the interest rates move up, there is some dynamics in the mortgage business that naturally increase your reported sensitivity because of the (indiscernible) there.

我們預計該範圍可能會更高一些，因為隨著利率上升，抵押貸款業務中存在一些動態，自然會增加您報告的敏感性，因為那裡（難以辨別）。

It should be in that range or so -- maybe a bit higher than that.

它應該在這個範圍左右——也許比這個範圍高一點。

And one last question.

最後一個問題。

On terms of the unrealized loss or gain position on securities and derivatives portfolios, can you give us a sense of the size there?

關於證券和衍生性商品投資組合的未實現損失或收益頭寸，您能否讓我們了解一下其規模？

I'm sorry.

對不起。

One more time?

再一次？

In terms of the unrealized loss or I assume its a loss -- on securities portfolio for Citi's securities portfolio inclusive of the derivatives -- can you give us a sense of the size of that?

就花旗證券投資組合（包括衍生性商品）的未實現損失或我假設的損失而言，您能否讓我們了解其規模？

I don't have that.

我沒有那個。

My sense is that it's still in a slight positive.

我的感覺是，它仍然有點積極。

Thank you.

謝謝。

The last question for today is from Erin Caddell.

今天的最後一個問題來自艾琳·卡德爾。

Blaylock & Partners.

布萊洛克及合作夥伴。

Can you hear me?

你聽得到我嗎？

Good morning, Erin.

早安，艾琳。

You were good on TV this morning.

今天早上你在電視上表現得很好。

Thank you.

謝謝。

I want to ask you a little bit more about levels of client engagement just seeing declines in commissions in Private Client and even in revenue and private banking.

我想問您更多關於客戶參與度的問題，只是看到私人客戶佣金的下降，甚至收入和私人銀行業務的下降。

What is your sense of what you are hearing from your clients in terms of their level of sensitivity to interest rates fears and geopolitical fears?

您對客戶對利率擔憂和地緣政治擔憂的敏感度有何看法？

Is there something you see as maybe a one quarter -- the markets are tough for us or something larger going on or is it more that you are just moving people more aggressively and seeing these products as opposed to transaction based services?

您是否認為有四分之一的事情——市場對我們來說很艱難，或者發生了更大的事情，或者您只是更積極地調動人們並看到這些產品而不是基於交易的服務？

I think you hit it on the head there.

我認為你擊中了那裡的頭。

I think there are a couple of things going on.

我認為有幾件事正在發生。

One is, I think the industry -- not only us but others are moving our clients -- our clients are preferring to be in more fee-based arrangements as opposed to transaction arrangements and frankly it's a more sensible place to be.

一是，我認為這個行業——不僅是我們，還有其他人正在推動我們的客戶——我們的客戶更喜歡採用更多基於費用的安排，而不是交易安排，坦率地說，這是一個更明智的地方。

So that is clearly occurring.

所以這顯然正在發生。

But that is a longer-term strategic issue that happening.

但這是一個正在發生的長期戰略問題。

The shorter term issue is simply a fall off in trading and I think you got it right which is there was a lot of activity in the first quarter as people caught up from really sitting on the sidelines for the year before that.

短期問題只是交易量的下降，我認為你說得對，第一季有很多活動，因為人們從前一年的真正觀望中恢復過來。

And since then there has been a little bit of a reassessment of what they wanted to invest and you are seeing a transition from fixed income to equities.

從那時起，他們對想要投資的內容進行了一些重新評估，你會看到從固定收益轉向股票的轉變。

Within equities, they are not quite sure where to go at this point.

在股票方面，他們目前還不太確定該走向何方。

They are sitting right now.

他們現在正坐著。

There are still large levels of cash out there.

那裡仍然有大量現金。

People aren't quite sure whether it's too late to be in fixed income or safe to be in fixed income or whether they should be doing individual stocks and if so, where.

人們不太確定現在投資固定收益是否為時已晚，或投資固定收益是否安全，或是否應該投資個股，如果應該，又該在哪裡投資。

They are very worried about event risks, geopolitical risks.

他們非常擔心事件風險、地緣政治風險。

They are worried about what might happen with the election here so there is a lot of those risks out there that cause people to decide not to do anything.

他們擔心這裡的選舉可能會發生什麼，因此存在許多風險，導致人們決定不採取任何行動。

When they decide not to do anything that hurts our revenues in those types of businesses and I think that is what you have seen happen.

當他們決定不做任何損害我們在這些類型業務中的收入的事情時，我認為這就是你所看到的情況。

Real quickly, is it possible to back out the revenue and/or net income from the St. Paul Travelers assets that are no longer there?

很快，是否有可能從不再存在的聖保羅旅行者資產中收回收入和/或淨收入？

Just trying to track through from the assets that were moved away to the decline in revenue and earnings in asset management sequentially?

只是想從被轉移的資產追蹤到資產管理收入和獲利的連續下降嗎？

If you mean the business of Travelers that we used to own -- (multiple speakers)

如果你指的是我們曾經擁有的旅行者公司－（多個發言者）

No, just the assets (multiple speakers) .

不，只是資產（多個發言者）。

$36 billion of assets moved out.

360億美元資產遷出。

Our fees for managing those were relatively small so there was -- I will call it round numbers sort of a $5 million fee kind of a deal during the quarter.

我們管理這些費用的費用相對較少，因此本季發生了一筆 500 萬美元費用的交易——我將其稱為整數交易。

So not a huge amount but reduced the income in asset management by a bit.

所以金額不是很大，但是資產管理的收入減少了一點。

Thanks.

謝謝。

That is really helpful.

這真的很有幫助。

You are welcome.

不客氣。

Thank you very much everyone for joining us again.

非常感謝大家再次加入我們。

I'm sure there are others that have more questions, but please feel free to call us in investor relations at any time.

我確信還有其他人有更多問題，但請隨時致電我們的投資者關係部。

And with that, this call is complete.

至此，本次通話就完成了。

Thank you.

謝謝。

Thank you everybody.

謝謝大家。

This does conclude today's conference.

今天的會議到此結束。

You may disconnect at this time.

此時您可以斷開連線。