花旗銀行 (C) 2023 Q2 法說會逐字稿

Hello, and welcome to Citi's Second Quarter 2023 Earnings Review with the Chief Executive Officer, Jane Fraser; and Chief Financial Officer, Mark Mason. Today's call will be hosted by Jen Landis, Head of Citi Investor Relations. (Operator Instructions). Also as a reminder, this conference is being recorded today. If you have any objections, please disconnect at this time. Ms. Landis, you may begin.

您好，歡迎收聽花旗首席執行官 Jane Fraser 的 2023 年第二季度盈利回顧；和首席財務官馬克·梅森。今天的電話會議將由花旗投資者關係主管 Jen Landis 主持。 （操作員說明）。另外提醒一下，今天正在錄製這次會議。如果您有任何異議，請此時斷開連接。蘭迪斯女士，您可以開始了。

Thank you, operator. Good morning, and thank you all for joining us. I'd like to remind you that today's presentation, which is available for download on our website, citigroup.com, may contain forward-looking statements, which are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these statements due to a variety of factors, including those described in our earnings materials as well as in our SEC filings.

謝謝你，接線員。早上好，感謝大家加入我們。我想提醒您，今天的演示文稿可以在我們的網站 citigroup.com 下載，其中可能包含前瞻性陳述，這些陳述基於管理層當前的預期，並可能受到不確定性和情況變化的影響。由於多種因素，包括我們的收益材料以及我們向 SEC 文件中描述的因素，實際結果可能與這些陳述存在重大差異。

And with that, I will turn it over to Jane.

有了這個，我會把它交給簡。

Thank you, Jen, and good morning to everyone. While this quarter wasn't as eventful as the first quarter, it was not without its moments. The global economy continues to be remarkably resilient, although the macro backdrop differs across key markets. Another bulk of the tightening is behind us, central banks are responding rigorously to inflation and have made it clear this cycle's hikes isn't over.

謝謝你，Jen，祝大家早上好。雖然本季度不像第一季度那樣多事，但也並非沒有精彩時刻。儘管主要市場的宏觀背景有所不同，但全球經濟仍然具有顯著的彈性。另一批緊縮政策已經過去，各國央行正在對通脹做出嚴格反應，並明確表示本週期的加息尚未結束。

In the U.S., the tight labor market keeps pushing the timing of this elusive recession later into this year or 2024. With the robust demand for services providing a backstop for the economy, the Euro zone has also exceeded expectations. However, most countries there are facing pressure from labor and energy costs challenging the region's longer-term competitiveness. China is the biggest disappointment as growth decelerated after an initial post reopening popped. I was there last month and let's just say, a few on the ground expect China to be as strong a driver of global growth this year as some had hoped.

在美國，緊張的勞動力市場不斷將這場難以捉摸的衰退推遲到今年晚些時候或2024年。由於服務業的強勁需求為經濟提供了支撐，歐元區的表現也超出了預期。然而，大多數國家都面臨著勞動力和能源成本的壓力，對該地區的長期競爭力構成挑戰。中國是最令人失望的國家，因為在最初的重新開放後經濟增長放緩。我上個月在那裡，可以這麼說，一些當地人士預計中國今年將像一些人所希望的那樣成為全球增長的強大推動力。

The bottom line, globally, we continue to see the same quite challenging macroeconomic conditions that we saw in the first quarter. From Citi's perspective, we continue to see the benefits of our diversified business model and strong balance sheet. We remain laser-focused on executing our strategy and simplifying and modernizing our bank. Despite the turbulence, the macro backdrop of the first half we're on track with the plan we laid out at Investor Day, and we remain committed to our strategy and our medium-term RoTCE target.

總而言之，在全球範圍內，我們繼續看到與第一季度相同的極具挑戰性的宏觀經濟狀況。從花旗的角度來看，我們繼續看到多元化業務模式和強勁資產負債表的好處。我們仍然專注於執行我們的戰略以及簡化和現代化我們的銀行。儘管存在動盪，但上半年的宏觀背景我們仍按照投資者日制定的計劃走上正軌，並且我們仍然致力於我們的戰略和中期 RoTCE 目標。

Today, we reported net income of $2.9 billion and an EPS of $1.33. Our revenues ex divestures are relatively flat to last year, and we remain on track to meet our revenue guidance of $78 billion to $79 billion for the year. We are also on track to meet the expense guidance for the year, and consistent with the plan we shared with you at our Investor Day, we are pursuing cost saving opportunities to help offset the significant investments in our transformation.

今天，我們報告淨利潤為 29 億美元，每股收益為 1.33 美元。我們的剝離前收入與去年相對持平，並且我們仍有望實現今年 780 億至 790 億美元的收入指導。我們也有望達到今年的費用指導，並且根據我們在投資者日與您分享的計劃，我們正在尋求節省成本的機會，以幫助抵消我們轉型中的重大投資。

In services, TTS continues to deliver with revenues up a healthy 15%. This was driven by both net interest income and noninterest revenue as we win fee-generating mandates with new clients and deepen our relationships with existing large corporate and commercial clients. We're proud of our #1 ranking for large institutional clients and this week, we announced our latest innovation, Citi direct commercial banking, a digital platform to help our growing commercial clients tap into our global network.

在服務方面，TTS 繼續實現收入健康增長 15%。這是由淨利息收入和非利息收入推動的，因為我們贏得了新客戶的收費授權，並加深了與現有大型企業和商業客戶的關係。我們為大型機構客戶排名第一而感到自豪，本週，我們宣布了最新的創新——花旗直接商業銀行業務，這是一個數字平台，可幫助我們不斷增長的商業客戶利用我們的全球網絡。

Security Services revenues were also up 15%, driven by higher interest rates across currencies. We're really pleased with execution in this business as we continue to bring in new assets under custody and administration, which are up by approximately $2.4 trillion in the last year. We've gained 100 basis points in share year-over-year as a result of the investments we've been making. Markets revenues were down 13%, compared to an exceptionally strong second quarter last year. From early April, clients stood on the sidelines as the debt ceiling played out and we continued to experience very low levels of volatility throughout the quarter. Despite this, our corporate client flows remain strong and we achieved our medium-term revenue to RWA target again this quarter.

由於貨幣利率上升，安全服務收入也增長了 15%。我們對這項業務的執行情況感到非常滿意，因為我們繼續引入託管和管理的新資產，這些資產在去年增加了約 2.4 萬億美元。由於我們一直在進行的投資，我們的份額同比增長了 100 個基點。與去年第二季度異常強勁的市場收入相比，市場收入下降了 13%。從 4 月初開始，隨著債務上限的結束，客戶持觀望態度，整個季度我們繼續經歷非常低的波動水平。儘管如此，我們的企業客戶流量仍然強勁，本季度我們再次實現了 RWA 中期收入目標。

In banking, the momentum in investment-grade debt has spread into other DCM products but the long-awaited rebound in investment banking has yet to materialize, and it was a disappointing quarter in terms of both the wallet and our own performance with investment banking revenues down 24%. We continue to rightsize the business to the environment whilst making investments in selected areas, such as technology and healthcare.

在銀行業，投資級債務的勢頭已經蔓延到其他DCM產品，但投資銀行業期待已久的反彈尚未實現，無論是錢包還是我們自己的投資銀行收入表現，這個季度都是令人失望的下降 24%。我們繼續根據環境調整業務規模，同時在技術和醫療保健等選定領域進行投資。

In the U.S., taken together, our cards businesses had double-digit revenue growth, aided by customer engagement and the continued normalization in payment rates. In Branded Cards, spend is still strong in travel and entertainment, and acquisitions remain pretty healthy. This is a great franchise, and we have launched a lot of new innovations from transforming our Thank You rewards platform to our enhanced value proposition for the premium card with our long-term partner, American Airlines. Credit normalization is happening faster in retail services given the profile of the portfolio. And overall, I'd say we're seeing a more cautious consumer, but not necessarily a recessionary one.

在美國，得益於客戶參與度和支付率的持續正常化，我們的信用卡業務收入實現了兩位數的增長。在品牌卡方面，旅行和娛樂方面的支出仍然強勁，收購也相當健康。這是一個偉大的特許經營權，我們推出了許多新的創新，從改造我們的感謝獎勵平台到我們與我們的長期合作夥伴美國航空增強高級卡的價值主張。鑑於投資組合的概況，零售服務業的信貸正常化速度更快。總的來說，我想說我們看到的是更加謹慎的消費者，但不一定是經濟衰退的消費者。

Wealth revenues were down 5% as the business continues to be negatively impacted by the deposit mix shift, particularly in the private bank and by lower investment revenues. However, we have seen activity pick up a bit in Asia for 2 quarters with growing net new assets. Referrals from the U.S. retail banks are increasing and globally, new client acquisition in the private bank and welfare work has grown significantly on the back of our investments in our network of client advisers and bankers.

財富收入下降了 5%，因為業務繼續受到存款結構轉變（尤其是私人銀行）和投資收入下降的負面影響。然而，我們看到亞洲的經濟活動連續兩個季度略有回升，新資產淨值不斷增長。來自美國零售銀行的推薦不斷增加，在我們對客戶顧問和銀行家網絡的投資的支持下，全球私人銀行和福利工作的新客戶獲取量顯著增長。

Turning to expenses. They were elevated this quarter as we expected. This includes the additional repositioning actions we took to rightsize set businesses and functions in light of the current environment. Year-to-date, severance is about $450 million, including $200 million in the quarter. Separate to repositioning, we remain committed to bending our expense curve by the end of '24 through 3 significant efforts.

轉向開支。正如我們預期的那樣，本季度它們有所上升。這包括我們根據當前環境調整業務和職能規模而採取的額外重新定位行動。年初至今，遣散費約為 4.5 億美元，其中本季度的遣散費為 2 億美元。除了重新定位之外，我們仍然致力於通過 3 項重大努力在 24 年底之前扭轉我們的費用曲線。

First, we continue to make investments in our transformation and other risk and control initiatives, which are necessary to modernize our infrastructure, automate our controls as well as to improve the client experience. As we've said before, we will start to see the more material benefit of these investments over the medium-term.

首先，我們繼續對轉型以及其他風險和控制舉措進行投資，這對於實現我們的基礎設施現代化、自動化控制以及改善客戶體驗是必要的。正如我們之前所說，從中期來看，我們將開始看到這些投資帶來的更多物質利益。

Second, as part of our simplification efforts, we expect to close the sales of our remaining 2 Asia consumer franchises by year-end, and we plan to restart the exit process in Poland. As you can see on this slide, we made excellent progress this quarter in the consumer businesses were winding down, aided by material asset sales. And we are now attacking stranded costs and closing out the TSAs in the markets that we have already exited.

其次，作為我們簡化工作的一部分，我們預計在年底前完成剩餘 2 個亞洲消費者特許經營權的銷售，併計劃重新啟動波蘭的退出程序。正如您在這張幻燈片中看到的那樣，在物質資產銷售的幫助下，本季度我們在消費業務逐漸減少方面取得了出色的進展。我們現在正在解決滯留成本問題，並關閉我們已經退出的市場中的 TSA。

You saw our determination to execute when we decided to IPO Banamex after exploring a sale. We should complete the process of separating the 2 businesses fully next year in preparation for the IPO. And I'm pleased with the progress on the ground. We are about to begin acceptance testing on the new systems for the retained businesses. All this means that by year-end, considering how far the divestitures and wind downs have progressed, legacy franchises will have materially reduced its exposures and primarily get down to Mexico, Poland, Korea and the elimination of the remaining stranded costs.

當我們在考慮出售後決定對 Banamex 進行 IPO 時，您就看到了我們執行的決心。我們應該在明年完成這兩項業務的完全分離，為IPO做準備。我對實際進展感到滿意。我們即將開始對保留業務的新系統進行驗收測試。所有這一切意味著，到年底，考慮到資產剝離和縮減的進展情況，傳統特許經營權將大幅減少其風險敞口，並主要進入墨西哥、波蘭、韓國，並消除剩餘的擱淺成本。

As such, as we move through the second half of the year, we will be in a position to focus on the third leg of bringing down our expense base through a leaner organizational model. Together, these 3 efforts are why we have confidence in saying that we will start to bend the curve on an absolute basis by the end of 2024 and continue to bring down expenses over the medium-term.

因此，當我們進入下半年時，我們將能夠專注於通過更精簡的組織模式降低我們的支出基礎的第三步。通過這三項努力，我們有信心地說，我們將在 2024 年底之前開始絕對地扭轉曲線，並在中期繼續降低支出。

Let me end with capital. Well, you won't be shocked to hear that we were disappointed with the increase to our stress capital buffer. We have engaged in active dialogue with the Fed to better understand the differences between our model and theirs in terms of noninterest revenue. And the industry awaits further clarity on capital requirements and importantly, their implementation timing from the holistic review the regulators have undertaken and the expected Basel III endgame NPR.

讓我以資本結束。好吧，當您聽到我們對壓力資本緩衝的增加感到失望時，您不會感到驚訝。我們與美聯儲進行了積極對話，以更好地了解我們的模型與他們的模型在非利息收入方面的差異。行業正在等待資本要求的進一步明確，重要的是，監管機構進行的全面審查以及預期的巴塞爾協議 III 最終 NPR 的實施時間。

There is still uncertainty as to what the final rules will be. And we, like the rest of the industry, we'll need to work through the implications. The exit of 14 international consumer markets coupled with the results of our transformation investments and change in business mix will help reduce our capital ratios. In addition, we have other levers to pull over time such as capital allocation, DTA utilization, our G-SIB score and our management buffer of 100 basis points. We are committed to returning capital to our shareholders as you saw with our decisions to repurchase $1 billion in common stock and increase the dividend. We ended the second quarter with a CET1 ratio of 13.3%. It's 100 basis points above our upcoming requirements after returning a total of $2 billion in capital, and we grew our tangible book value per share to $85.34.

最終規則是什麼仍存在不確定性。與業內其他公司一樣，我們需要解決這些影響。 14個國際消費市場的退出，加上我們轉型投資和業務結構變化的結果，將有助於降低我們的資本比率。此外，我們還有其他槓桿可以隨著時間的推移而拉動，例如資本配置、DTA 利用率、我們的 G-SIB 評分和 100 個基點的管理緩衝。正如您在我們回購 10 億美元普通股並增加股息的決定中看到的那樣，我們致力於向股東返還資本。第二季度末，我們的 CET1 比率為 13.3%。在返還總計 20 億美元的資本後，這比我們即將提出的要求高出 100 個基點，並且我們將每股有形賬面價值增至 85.34 美元。

Given the environment, we will continue to look at our level of capital return on a quarter-to-quarter basis. Overall, we're pleased with the progress we've made, but there remains a lot to do. We will continue to update you on the progress we are making every quarter.

鑑於這種環境，我們將繼續按季度審視我們的資本回報水平。總的來說，我們對所取得的進展感到滿意，但仍有很多工作要做。我們將繼續每個季度向您通報我們取得的進展。

And with that, I'd like to turn it over to Mark, and then we would both be delighted, as always, to take your questions.

說到這裡，我想把它交給馬克，然後我們都會像往常一樣很高興回答你的問題。

Thanks, Jane, and good morning, everyone. I'm going to start with the firm-wide financial results, focusing on year-over-year comparisons for the second quarter, unless I indicate otherwise, and spend a little more time on expenses and capital. Then I will turn to the results of each segment.

謝謝，簡，大家早上好。除非我另有說明，我將從公司範圍內的財務業績開始，重點關注第二季度的同比比較，並花更多的時間在費用和資本上。然後我會談談每個部分的結果。

On Slide 4, we show financial results for the full firm. In the second quarter, we reported net income of approximately $2.9 billion and an EPS of $1.33 and an RoTCE of 6.4% or $19.4 billion of revenues.

在幻燈片 4 上，我們展示了整個公司的財務業績。第二季度，我們報告淨利潤約為 29 億美元，每股收益為 1.33 美元，RoTCE 為 6.4%，即收入 194 億美元。

Embedded in these results are after-tax divestiture related impacts of approximately $92 million. Excluding these items, EPS was $1.37 and with an RoTCE of 6.6%. In the quarter, total revenues decreased by 1%, both on a reported basis and excluding divestiture-related impacts, as strength across services, U.S. Personal Banking and revenue from the investment portfolio was more than offset by declines in markets, investment banking and wealth as well as the revenue reduction from the closed exits and wind-downs.

這些結果中包含約 9200 萬美元的稅後資產剝離相關影響。排除這些項目，每股收益為 1.37 美元，RoTCE 為 6.6%。本季度總收入下降了 1%（按報告計算且不包括資產剝離相關影響），因為服務、美國個人銀行業務和投資組合收入的增長被市場、投資銀行和財富的下滑所抵消。以及因退出和停業而導致的收入減少。

Our results include expenses of $13.6 billion, up 9%, both on a reported basis and excluding divestiture-related costs. Cost of credit was approximately $1.8 billion primarily driven by the continued normalization in cards net credit losses and ACL builds largely related to growth in card balances. Our effective tax rate this quarter was 27%, primarily driven by the geographic mix of our pretax earnings in the quarter. Excluding current quarter divestiture-related impacts, our effective tax rate was 26%.

我們的業績包括 136 億美元的支出，增長 9%（按報告計算且不包括剝離相關成本）。信貸成本約為 18 億美元，主要是由於信用卡淨信貸損失持續正常化以及 ACL 的建立很大程度上與信用卡餘額的增長有關。本季度我們的有效稅率為 27%，這主要是由本季度稅前收入的地理組合推動的。排除本季度資產剝離相關的影響，我們的有效稅率為 26%。

At the end of the quarter, we had over $20 billion in total reserves with a reserve to funded loan ratio of approximately 2.7%. And through the first half of 2023, we reported an RoTCE of 8.7%.

截至本季度末，我們的準備金總額超過 200 億美元，準備金與融資貸款的比率約為 2.7%。截至 2023 年上半年，我們報告的 RoTCE 為 8.7%。

On Slide 5, we show the quarter-over-quarter and year-over-year expense variance for the second quarter. Expenses were up 9%, driven by a number of factors including investment in risk and controls, business-led and enterprise-led investments, volume growth and macro factors, including inflation as well as severance and all of this was partially offset by productivity savings and expense reductions from the exits and wind-downs. Severance in the quarter was approximately $200 million and $450 million year-to-date as we took further actions across investment banking, markets and the functions. We're investing in the execution of our transformation and continue to see a shift in our investments from third-party consulting to technology and full-time employees.

在幻燈片 5 上，我們顯示了第二季度的環比和同比費用差異。費用增長了 9%，受到多種因素的推動，包括風險和控制投資、業務主導和企業主導的投資、數量增長和宏觀因素，包括通貨膨脹和遣散費，所有這些都被生產力節省部分抵消以及退出和停業帶來的費用減少。隨著我們在投資銀行、市場和職能方面採取進一步行動，本季度的遣散費約為 2 億美元，年初至今為 4.5 億美元。我們正在投資於轉型的執行，並繼續看到我們的投資從第三方諮詢轉向技術和全職員工。

And as we said last quarter, our transformation and technology investments span across the following themes: platform and process simplification, security and infrastructure modernization, client experience enhancements and data improvements. And across these themes, technology spend was $3 billion in the quarter, up 13%, primarily driven by change in the bank spend. Despite the higher expense base sequentially, we remain in line with our full year guidance of roughly $54 billion, excluding divestiture related impacts and the FDIC special assessment.

正如我們上季度所說，我們的轉型和技術投資涵蓋以下主題：平台和流程簡化、安全和基礎設施現代化、客戶體驗增強和數據改進。在這些主題中，本季度的技術支出為 30 億美元，增長 13%，這主要是由銀行支出變化推動的。儘管費用基數連續上升，但我們仍符合約 540 億美元的全年指導，不包括資產剝離相關影響和 FDIC 特別評估。

On Slide 6, we show net interest income, deposits and loans, where I'll speak to sequential variances. In the second quarter, net interest income increased by approximately $550 million, largely driven by dividends. The increase in net interest income ex markets was largely driven by higher rates and cards growth, partially offset by the mix shift that we've seen to higher rate deposit products within PBWM. Average loans were flat as growth in PBWM was offset by the wind down markets and a decline in ICG as we continue to optimize the loan portfolio, including a further reduction in subscription credit facilities.

在幻燈片 6 上，我們顯示了淨利息收入、存款和貸款，我將在其中討論連續方差。第二季度淨利息收入增加約5.5億美元，主要由股息推動。市場外淨利息收入的增長主要是由較高的利率和信用卡增長推動的，但部分被我們看到的 PBWM 內利率較高的存款產品的組合轉變所抵消。平均貸款持平，因為 PBWM 的增長被市場的放緩和 ICG 的下降所抵消，因為我們繼續優化貸款組合，包括進一步減少認購信貸額度。

Average deposits were down 2%, largely driven by TTS as we saw some nonoperational outflow as expected in light of quantitative tightening. However, underlying this, we did see strong growth in operating accounts as we continue to win new clients and deepen with existing ones. And our net interest margin increased 7 basis points.

平均存款下降 2%，主要是由 TTS 推動的，因為我們看到量化緊縮導致的一些非經營性資金外流，正如預期的那樣。然而，在此基礎上，隨著我們繼續贏得新客戶並深化現有客戶，我們確實看到了運營賬戶的強勁增長。我們的淨息差增加了 7 個基點。

On Slide 7, we show key consumer and corporate credit metrics. We are well reserved for the current environment with over $20 billion of total reserves. Our reserves to funded loans ratio was approximately 2.7%. And within that, U.S. cards is 7.9%. In PBWM, 44% of our lending exposures are in U.S. cards and of that exposure, 80% is to customers with FICOs of 680 or higher and NCL rates are still below pre-COVID levels and are normalizing in line with our expectations. The remaining 56% of our PBWM lending exposure is largely in well, predominantly in mortgages and margin lending.

在幻燈片 7 上，我們展示了關鍵的消費者和企業信用指標。我們為當前環境做好了充足的儲備，總儲備超過 200 億美元。我們的準備金與融資貸款的比率約為2.7%。其中，美國卡佔 7.9%。在 PBWM 中，我們 44% 的貸款風險來自美國卡，其中 80% 是 FICO 為 680 或更高的客戶，NCL 利率仍低於新冠疫情前的水平，並且正在正常化，符合我們的預期。我們剩餘 56% 的 PBWM 貸款敞口大部分狀況良好，主要是抵押貸款和保證金貸款。

In our ICG portfolio, of our total exposure, approximately 85% is investment grade. Of the international exposure, approximately 90% is investment grade or exposure to multinational clients or their subsidiaries. And corporate nonaccrual loans remain low at about 44 basis points of total loans. As you can see on the page, we break out our commercial real estate lending exposures across ICG and PBWM, which totaled $66 billion, of which 90% is investment grade. So while the macro and geopolitical environment remains uncertain, we feel very good about our asset quality, exposures and reserve levels, and we continuously review and stress the portfolio under a range of scenarios.

在我們的 ICG 投資組合中，大約 85% 是投資級別。在國際風險敞口中，大約 90% 是投資級別或跨國客戶或其子公司的風險敞口。企業非應計貸款仍保持在較低水平，佔總貸款的 44 個基點左右。正如您在頁面上看到的，我們細分了 ICG 和 PBWM 的商業房地產貸款風險，總額為 660 億美元，其中 90% 為投資級。因此，儘管宏觀和地緣政治環境仍存在不確定性，但我們對資產質量、風險敞口和準備金水平感到非常滿意，並且我們在一系列情景下不斷審查和施壓投資組合。

On Slide 8, we show our summary balance sheet and key capital and liquidity metrics. We maintain a very strong $2.4 trillion balance sheet, which is funded in part by a well-diversified $1.3 trillion deposit base across regions, industries, customers and account types, which is deployed into high-quality, diversified assets. Our balance sheet reflects our strategy and well-diversified business model. We leverage our unique assets and capabilities to serve corporates, financial institutions, investors and individuals with global needs. The majority of our deposits, $818 billion are institutional and operational in nature and span across 90 countries.

在幻燈片 8 上，我們展示了資產負債表摘要以及關鍵資本和流動性指標。我們維持著非常強勁的 2.4 萬億美元資產負債表，部分資金來自跨地區、行業、客戶和賬戶類型的 1.3 萬億美元多元化存款基礎，這些存款被部署到高質量、多元化的資產中。我們的資產負債表反映了我們的戰略和多元化的業務模式。我們利用我們獨特的資產和能力為有全球需求的企業、金融機構、投資者和個人提供服務。我們的大部分存款（8,180 億美元）屬於機構性和運營性存款，分佈在 90 個國家/地區。

These institutional deposits are complemented by $427 billion of U.S. retail consumer and global wealth deposits, as you can see on the bottom right side of the page, we have approximately $584 billion of HQLA and approximately $661 billion of loans and we maintain total liquidity resources of just under $1 trillion. Our LCR was relatively stable at 119% and our net stable funding ratio was greater than 100%. We ended the quarter with a 13.3% CET1 ratio and our tangible book value per share was $85.34, up 6% from a year ago.

這些機構存款輔以 4,270 億美元的美國零售消費者和全球財富存款，正如您在頁面右下角所看到的，我們擁有約 5,840 億美元的 HQLA 和約 6,610 億美元的貸款，我們維持著略低於 1 萬億美元。我們的LCR相對穩定，為119%，淨穩定資金比率大於100%。本季度末，我們的 CET1 比率為 13.3%，每股有形賬面價值為 85.34 美元，比去年同期增長 6%。

On Slide 9, we show a sequential CET1 walk to provide more details on the drivers this quarter. Starting from the end of the first quarter. First, we generated $2.6 billion of net income to common, which added 22 basis points. Second, we returned $2 billion in the form of common dividends and share repurchases, which drove a reduction of about 18 basis points. And finally, the remaining 14 basis point decrease was primarily driven by RWA growth, as we continue to grow card balances, partially offset by optimizing RWA in markets and corporate lending. We ended the quarter with a 13.3% CET1 capital ratio which includes a 100 basis point internal management buffer.

在幻燈片 9 上，我們展示了連續的 CET1 步行，以提供有關本季度驅動程序的更多詳細信息。從第一季度末開始。首先，我們為 Common 創造了 26 億美元的淨利潤，增加了 22 個基點。其次，我們以普通股息和股票回購的形式返還了 20 億美元，這推動了約 18 個基點的下降。最後，剩餘的 14 個基點下降主要是由 RWA 增長推動的，因為我們繼續增加卡餘額，但通過優化市場和企業貸款的 RWA 部分抵消了這一影響。本季度結束時，我們的 CET1 資本比率為 13.3%，其中包括 100 個基點的內部管理緩衝。

We expect our regulatory capital requirement to be 12.3% in October of 2023, which incorporates the increase in our stress capital buffer from 4% and to the preliminary SCB of 4.3% we announced a couple of weeks ago. And we will continue our dialogue with the Fed to better understand the differences between their model of results and ours, specifically in noninterest revenue. That said, our strategy is designed to further diversify our business mix to have a more consistent, predictable and repeatable revenue stream as well as reduce risk and simplify our firm by exiting 14 international consumer markets. The strategy and the simplification, coupled with the benefits of our transformation investments will allow us to improve RWA and capital over time.

我們預計到 2023 年 10 月，我們的監管資本要求將達到 12.3%，其中包括我們的壓力資本緩衝從 4% 增加到我們幾週前宣布的初步 SCB 4.3%。我們將繼續與美聯儲對話，以更好地了解他們的結果模型與我們的模型之間的差異，特別是在非利息收入方面。也就是說，我們的戰略旨在進一步實現業務組合多元化，以獲得更加一致、可預測和可重複的收入來源，並通過退出 14 個國際消費市場來降低風險和簡化我們的公司。該戰略和簡化，再加上我們轉型投資的好處，將使我們能夠隨著時間的推移改善 RWA 和資本。

The continued optimization of our balance sheet should not only help SCB but reduce RWA. This will offset some of the anticipated headwinds in capital requirements and RWA. And we will continue to reassess how and where we deploy capital, and we will continue to reassess the appropriate level of our management buffer over time.

資產負債表的持續優化不僅有助於渣打銀行，還能減少風險加權資產。這將抵消資本要求和風險加權資產方面的一些預期阻力。我們將繼續重新評估我們如何以及在何處部署資本，並且隨著時間的推移，我們將繼續重新評估我們管理緩衝的適當水平。

On Slide 10, we show the results for our Institutional Clients Group for the second quarter. Revenues were down 9% this quarter as growth in services was more than offset by markets in banking. Expenses increased 13%, primarily driven by continued investment in TTS and Risk and Controls as well as approximately $120 million of severance in investment banking and markets, partially offset by productivity savings. Cost of credit was $58 million as net credit losses were partially offset by an ACL release. This resulted in net income of approximately $2.2 billion, down 45%, primarily driven by lower revenues and higher expenses. ICG delivered an RoTCE of 9.2% for the quarter and 11.4% through the first half of 2023. Average loans were down 6%, reflecting discipline around our strategy and returns. Average deposits were up 1% as we continue to acquire new clients and deepen relationships with existing ones.

在幻燈片 10 上，我們展示了機構客戶組第二季度的業績。由於服務業的增長被銀行業市場所抵消，本季度收入下降了 9%。費用增長了 13%，主要是由於對 TTS 和風險與控制的持續投資以及投資銀行和市場方面約 1.2 億美元的遣散費，部分被生產力節省所抵消。信貸成本為 5,800 萬美元，淨信貸損失被 ACL 發布部分抵消。這導致淨利潤約為 22 億美元，下降 45%，主要是由於收入減少和費用增加所致。 ICG 本季度的 RoTCE 為 9.2%，到 2023 年上半年為 11.4%。平均貸款下降 6%，反映出我們對戰略和回報的嚴格要求。隨著我們不斷獲得新客戶並加深與現有客戶的關係，平均存款增長了 1%。

On Slide 11, we show revenue performance by business and the key drivers we laid out at Investor Day. In Treasury and Trade Solutions revenues were up 15%, driven by 18% growth in net interest income and 8% in noninterest revenue. It's also worth noting that TTS revenues were up 20% on an ex FX basis. We continue to see healthy underlying drivers in TTS that indicate consistently strong client activity with U.S. dollar clearing volumes up 6% both in the quarter and through the first half, cross-border flows up 11%, outpacing global GDP growth again, both in the quarter and through the first half and commercial card volume up roughly 15% led by spend in travel.

在幻燈片 11 中，我們按業務展示了收入表現以及我們在投資者日列出的關鍵驅動因素。在淨利息收入增長 18% 和非利息收入增長 8% 的推動下，資金和貿易解決方案收入增長了 15%。還值得注意的是，TTS 收入在扣除外匯基礎上增長了 20%。我們繼續看到 TTS 健康的潛在驅動因素，這表明客戶活動持續強勁，美元清算量在本季度和上半年均增長 6%，跨境流量增長 11%，再次超過全球 GDP 增長（無論是在今年還是上半年）。本季度及整個上半年，商務卡交易量在旅行支出的帶動下增長了約 15%。

In fact, similar to the last few quarters, client wins are up approximately 41% across all client segments. These include [market] transactions where we are serving as the client's primary operating bank. In Security Services, revenues were also up 15%, driven by higher net interest income across currency. We are pleased with the progress in security services as we continue to onboard assets under custody and administration which are up approximately 11% or $2.4 trillion, and we feel very good about the pipeline of new deals in security services.

事實上，與過去幾個季度類似，所有客戶群的客戶贏得量增長了約 41%。其中包括我們作為客戶的主要運營銀行的[市場]交易。在安全服務方面，由於各種貨幣的淨利息收入增加，收入也增長了 15%。我們對安全服務方面取得的進展感到高興，因為我們繼續託管和管理的資產增加了約 11%（即 2.4 萬億美元），我們對安全服務領域新交易的進展感到非常滿意。

As a reminder, the services businesses are central to our strategy in our 2 of our higher returning businesses with strong synergies across the firm. Markets revenues were down 13%, driven by both fixed income and equities relative to an exceptional quarter last year coupled with low volatility this quarter. Fixed income revenues were down 13% as strength in our rates franchise was more than offset by a decline in currencies and commodities. Equities revenues were down 10%, primarily reflecting a decline in equity derivatives. But consistent with our strategy, we continue to grow prime balances driven by client wins. Corporate client flows remain strong and stable, and we continue to make solid progress on our revenue to RWA part.

提醒一下，服務業務是我們兩項回報率較高的業務戰略的核心，在整個公司內具有強大的協同效應。與去年同期相比，受固定收益和股票市場收入下降 13% 以及本季度波動性較低的影響，市場收入下降了 13%。固定收益收入下降了 13%，因為我們的利率特許經營權的實力被貨幣和大宗商品的下跌所抵消。股票收入下降 10%，主要反映股票衍生品的下降。但與我們的戰略一致，我們在贏得客戶的推動下繼續增加主要餘額。企業客戶流量保持強勁和穩定，我們的 RWA 部分收入繼續取得紮實進展。

And finally, banking revenues, excluding gains and losses on loan hedges, were down 22%, driven by investment banking as heightened macro uncertainty continue to impact client activity as well as lower revenues in corporate lending. While we continue to have a strong pipeline and are seeing green shoots of activity, we recognize there's more work to do in ECM and M&A. That said, we believe the investments that we've made in healthcare and technology coverage will benefit us over time. So overall, while the market environment remains challenging and there is more work to be done, we're making progress against our strategy in ICG.

最後，由於宏觀不確定性加劇繼續影響客戶活動以及企業貸款收入下降，投資銀行業務推動銀行業收入（不包括貸款對沖收益和損失）下降了 22%。雖然我們繼續擁有強大的渠道並看到了活動的萌芽，但我們認識到在 ECM 和併購方面還有更多工作要做。也就是說，我們相信，隨著時間的推移，我們在醫療保健和技術覆蓋方面所做的投資將使我們受益。因此，總體而言，雖然市場環境仍然充滿挑戰，並且還有更多工作要做，但我們在 ICG 的戰略方面正在取得進展。

Now turning to Slide 12. We show the results for our Personal Banking and Wealth Management business. Revenues were up 6%, driven by net interest income growth of 7%, partially offset by a 6% decline in noninterest revenue, driven by lower investment product revenues in wealth. Expenses were up 5%, predominantly driven by risk and control investments. Cost of credit was $1.6 billion, driven by higher net credit losses as we continue to see normalization in our card portfolios and a reserve build of approximately $335 million primarily driven by card balance growth. Average loans increased 7% driven by cards, mortgages and installment lending. Average deposits decreased 1% largely reflecting our wealth clients putting cash to work in fixed income investments on our platform. And PBWM delivered an RoTCE of 5.5%, both for this quarter and through the first half of 2023. Largely reflecting the challenging environment for wealth and higher credit costs.

現在轉向幻燈片 12。我們展示了個人銀行和財富管理業務的結果。在淨利息收入增長 7% 的推動下，收入增長了 6%，但部分被財富投資產品收入下降導致的非利息收入下降 6% 所抵消。費用增長了 5%，主要是由風險和控制投資推動的。信貸成本為 16 億美元，這是由於我們的信用卡投資組合繼續正常化，以及主要由信用卡餘額增長推動的準備金增加約 3.35 億美元，導致淨信貸損失增加。在信用卡、抵押貸款和分期貸款的推動下，平均貸款增長了 7%。平均存款下降 1%，主要反映我們的財富客戶將現金用於我們平台上的固定收益投資。 PBWM 在本季度和 2023 年上半年的 RoTCE 均為 5.5%。這在很大程度上反映了財富環境的挑戰和信貸成本的上升。

On Slide 13, we show PBWM revenues by product as well as key business drivers and metrics. Branded cards revenues were up 8%, primarily driven by higher net interest income. We continue to see strong underlying drivers with new account acquisitions up 6%, card spend volumes up 4% and average loans up 14%. Retail services revenues were up 27%, driven by higher net interest income and lower partner payments. For both card portfolios, we continue to see payment rates decline and that, combined with the investments that we've been making, contributed to growth in interest-earning balances of 17% in Branded Cards and 12% in Retail Services. Retail Banking revenues decreased 9%, reflecting the transfer of relationships and the associated deposits to our wealth business. In fact, consistent with our strategy, we continue to leverage our retail network to drive 25,000 wealth referrals year-to-date through May, up 18% year-over-year.

在幻燈片 13 上，我們按產品展示了 PBWM 收入以及關鍵業務驅動因素和指標。品牌卡收入增長 8%，主要是由於淨利息收入增加。我們繼續看到強勁的潛在驅動力，新賬戶獲取量增長 6%，信用卡支出量增長 4%，平均貸款增長 14%。由於淨利息收入增加和合作夥伴付款減少，零售服務收入增長了 27%。對於這兩種卡組合，我們繼續看到支付率下降，加上我們一直在進行的投資，品牌卡的生息餘額增長了 17%，零售服務的生息餘額增長了 12%。零售銀行業務收入下降 9%，反映出關係和相關存款向我們的財富業務的轉移。事實上，根據我們的戰略，截至 5 月份，我們繼續利用我們的零售網絡推動了 25,000 次財富推薦，同比增長 18%。

Wealth revenues were down 5%, driven by continued investment fee headwinds and higher deposit costs particularly in the private bank. However, Wealth at Work revenues were up over 30%, driven by strong lending results primarily in mortgages. Client advisers were down 1%, reflecting the repacing of strategic hiring. And new client acquisitions were up nearly 40% in the Private Bank and approximately 60% in Wealth at Work in the second quarter. While there's clearly more work to do in wealth, we are seeing good momentum in the underlying drivers.

由於持續的投資費用阻力和較高的存款成本（尤其是私人銀行），財富收入下降了 5%。然而，在主要是抵押貸款方面的強勁貸款業績的推動下，Wealth at Work 收入增長了 30% 以上。客戶顧問人數下降了 1%，反映出戰略招聘的調整。第二季度，私人銀行的新客戶增長了近 40%，Wealth at Work 的新客戶增長了約 60%。雖然財富方面顯然還有更多工作要做，但我們看到潛在驅動因素的良好勢頭。

On Slide 14, we show results for legacy franchise. Revenues were down 1% as the benefit of higher rates and volumes in Mexico was more than offset by the reductions from closed consumer exit and wind down. It's worth noting that Mexico's revenues were up 22% and 10% ex FX. Expenses decreased 2%, primarily driven by closed consumer exits and wind-downs. Excluding divestiture-related impacts, expenses decreased 8%.

在幻燈片 14 上，我們展示了傳統特許經營的結果。收入下降了 1%，因為墨西哥較高的費率和銷量所帶來的好處被關閉的消費者退出和停業帶來的減少所抵消。值得注意的是，墨西哥的外匯收入分別增長了 22% 和 10%。費用下降 2%，主要是由於消費者退出和業務縮減所致。排除與資產剝離相關的影響，費用下降了 8%。

On Slide 15, we show results for Corporate/Other for the second quarter. Revenues increased largely driven by higher net revenue from the investment portfolio. Expenses also increased driven by inflation and severance.

在幻燈片 15 上，我們展示了第二季度企業/其他業務的結果。收入的增長主要是由於投資組合淨收入的增加。通貨膨脹和遣散費也導致費用增加。

On Slide 16, I'll briefly touch on our third quarter and full year 2023 outlook. We are maintaining our full year revenue guidance of $78 billion to $79 billion, excluding 2023 divestiture-related impacts, although the mix has shifted somewhat. We are increasing our net interest income guidance from $45 billion to slightly above $46 billion for the full year, excluding markets, offset by lower noninterest revenue, largely driven by investment banking and wealth.

在幻燈片 16 上，我將簡要介紹我們對 2023 年第三季度和全年的展望。我們維持全年 780 億至 790 億美元的收入指引，不包括 2023 年剝離相關的影響，儘管結構有所變化。我們將全年淨利息收入指引從 450 億美元提高到略高於 460 億美元（不包括市場），但主要由投資銀行和財富推動的非利息收入下降所抵消。

We're also maintaining our expense guidance of roughly $54 billion excluding 2023, divestiture-related impacts and the FDIC special assessments. Net credit losses in cards should continue to normalize in the remainder of the year with both portfolios reaching normalized levels by year-end. And we now expect the full year tax rate to be approximately 25%, excluding discrete items and divestiture-related impacts. As it relates to the third quarter, we expect continued momentum with clients, including fees and benefits from U.S. and non-U.S. rates on NII.

我們還維持約 540 億美元的支出指導，不包括 2023 年、剝離相關影響和 FDIC 特別評估。卡的淨信用損失將在今年剩餘時間內繼續正常化，兩個投資組合到年底都將達到正常化水平。我們現在預計全年稅率約為 25%，不包括離散項目和資產剝離相關影響。就第三季度而言，我們預計客戶將繼續保持增長勢頭，包括美國和非美國 NII 利率的費用和收益。

We also anticipate a sequential increase in expenses driven by continued investments in transformation and risk and controls. Net credit losses in cards should continue to normalize in line with expectations. And our effective tax rate for the quarter should be approximately 25% excluding discrete items and divestiture-related impacts. And as it relates to buybacks, we will continue to make that decision on a quarter-by-quarter basis.

我們還預計，由於轉型以及風險和控制方面的持續投資，費用將出現環比增長。卡的淨信用損失應繼續正常化，符合預期。不包括離散項目和剝離相關影響，我們本季度的有效稅率應約為 25%。由於涉及回購，我們將繼續按季度做出決定。

Before we move to Q&A, I'd like to end with a few points. We continue to execute on the strategy to simplify our firm, improve our revenue mix and bring both expenses and capital down over time. We're seeing solid momentum in the underlying drivers of the majority of our business and as we said at Investor Day, the financial path will not be linear, but we remain focused on achieving our medium-term RoTCE target.

在我們進行問答之前，我想以幾點結束。我們將繼續執行簡化公司、改善收入結構並隨著時間的推移降低費用和資本的戰略。我們看到我們大部分業務的潛在驅動力保持強勁勢頭，正如我們在投資者日所說，財務路徑不會是線性的，但我們仍然專注於實現中期 RoTCE 目標。

And with that, Jane and I would be happy to take your questions.

簡和我很樂意回答您的問題。

(Operator Instructions) And our first question comes from Glenn Schorr with Evercore.

（操作員說明）我們的第一個問題來自 Evercore 的 Glenn Schorr。

So I'm very curious on the whole revenue to RWA topic, especially with some of the changes coming in. So maybe you could give a little more color on -- let's say, for instance, the further reduction in the subscription credit facility. I think I read somewhere that was like an $80 billion book down to $20 billion. You can correct that if that's wrong. But just usually, those things are big important clients that have relationship lending, things attached to them. So I'm curious on how you balance the capital benefit, the clear capital benefit versus the client impact and how you think about that? Are there other blocks of business that are in motion right now?

因此，我對 RWA 主題的整體收入非常好奇，尤其是一些即將發生的變化。因此，也許您可以提供更多信息，例如，訂閱信貸額度的進一步減少。我想我讀過一本價值 800 億美元到 200 億美元的書。如果這是錯誤的，您可以更正。但通常情況下，這些都是有關係貸款的重要客戶，以及與之相關的東西。所以我很好奇您如何平衡資本效益、明確的資本效益與客戶影響以及您如何看待這一點？目前還有其他正在開展的業務嗎？

Thanks, Glenn, and thanks for the question. Look, a couple of points on that. One is we've been very focused on the revenue to RWA metric in our markets business in the ICG more broadly as well. And we've made considerable progress on that. And that's important because how we use the balance sheet and ensuring that we're optimizing the use of the balance sheet contributes to how we improve returns over time.

謝謝格倫，也謝謝你的提問。聽著，有幾點。一是我們一直非常關注 ICG 市場業務中 RWA 收入指標。我們在這方面已經取得了相當大的進展。這很重要，因為我們如何使用資產負債表並確保優化資產負債表的使用有助於我們隨著時間的推移提高回報。

You're right to point out the subscription facility, credit facility, lending that we do. We brought that down pretty significantly. The numbers you highlight are a lot higher than the portfolio. But what's important here is that as we look at that, we look at a couple of things. So one, the nature of the relationship and whether clients are taking advantage of the breadth of what we have to offer; two, the profitability and returns associated with the product to the extent that it is in a broader relationship, and where that -- those returns are low, subpar and the prospect for doing more has proven to be fruitless, we take it down. And that's what we've done with a large part of that book, just as we juxtapose it against other opportunities to use balance sheet where clients are taking advantage of the broader franchise and therefore, are generating higher returns.

您指出我們提供的認購便利、信貸便利和貸款是正確的。我們大大降低了這一點。您突出顯示的數字遠高於投資組合。但這裡重要的是，當我們考慮這個問題時，我們會考慮一些事情。第一，關係的性質以及客戶是否正在利用我們所提供的廣泛服務；第二，與產品相關的盈利能力和回報，只要它處於更廣泛的關係中，如果這些回報很低、低於標準，而且做更多事情的前景被證明是徒勞的，我們就把它拿下來。這就是我們在這本書中所做的很大一部分，就像我們將其與使用資產負債表的其他機會並列一樣，在這些機會中，客戶利用更廣泛的特許經營權，從而產生更高的回報。

And we're going to continue to do that. We've done that to drive the revenue to RWA metric. We've done it selectively on pieces of the portfolio like SCF. We've also looked at our broader corporate lending portfolio and where those promises for higher relationship returns aren't manifesting themselves. We've not renewed those loans. And as we think about pending regulatory changes proactively making these efforts becomes critically important. When I look back on the activity that we've done over the past couple of years, we've reduced RWA by approximately $120 billion over the last 2 years. And about 75% of that is predominantly driven by balance sheet optimization and looking at client activity that has low margin business. And so this is important for us to do what we keep doing.

我們將繼續這樣做。我們這樣做是為了將收入提高到 RWA 指標。我們有選擇地對 SCF 等投資組合的各個部分進行了此操作。我們還研究了更廣泛的企業貸款組合，以及那些對更高關係回報的承諾並未兌現的情況。我們還沒有續簽這些貸款。當我們積極思考即將發生的監管變化時，這些努力變得至關重要。當我回顧過去幾年我們所做的活動時，我們在過去 2 年中減少了大約 1200 億美元的 RWA。其中約 75% 主要是由資產負債表優化和關注低利潤業務的客戶活動推動的。因此，這對我們繼續做下去很重要。

I appreciate that, Mark. Maybe just a quick follow-up. On NII, I asked this last quarter too. And your first half annualized ex market is running about $1.5 billion ahead of the guide. Is that just unpredictable nature of all the moving parts, trying to be conservative or anything else in the back half that you're thinking about?

我很感激，馬克。也許只是快速跟進。在 NII 上，我上個季度也問過這個問題。上半年年化前市場運行速度比指導值高出約 15 億美元。這是否只是所有活動部件的不可預測性，試圖保守或您正在考慮的後半部分的其他內容？

Thanks, Glenn. We did take guidance up to above -- slightly above $46 billion from the $45 billion. I guess there are a couple of things in FX markets, of course. There are a couple of things to think about in terms of headwinds and tailwinds that play through there. One is you've heard me mention before that we've reached terminal betas in the U.S.; two, deposit volumes and the ship mix as we see consumers kind of move into (inaudible) products; and three, really the wind downs and the exits and the reduction that they will, kind of 3 headwinds as we think about the forecast and the balance of the year. There are obviously some potential tailwinds that play to the other side, including rate movements from in non-U.S. dollar as well as card volume growth.

謝謝，格倫。我們確實採用了上述指導——略高於 450 億美元的 460 億美元。當然，我想外匯市場有一些事情。關於那裡的逆風和順風，有幾件事需要考慮。一是你之前聽我提到過我們在美國已經達到了終端測試階段；第二，存款量和船舶組合，因為我們看到消費者開始轉向（聽不清）產品；第三，真正的減產、退出和減少，當我們考慮今年的預測和余額時，這是三種逆風。顯然，還有一些潛在的有利因素對另一方產生影響，包括非美元匯率變動以及信用卡數量增長。

And as we look at those headwinds and tailwinds, our current read is to take it up, but $46 billion or slightly above that feels like the right level in the context of total revenues at $78 million to $79 billion.

當我們審視這些逆風和順風時，我們目前的解讀是接受它，但在 7800 萬至 790 億美元的總收入背景下，460 億美元或略高於這個數字感覺是合適的水平。

And our next question comes from Jim Mitchell with Seaport Global Securities.

我們的下一個問題來自 Seaport Global Securities 的 Jim Mitchell。

Maybe just getting on the expense side. You're keeping Mexico til 2025 now at the earliest. So that will be on the books longer. How do we think about that bend the curve discussion? And maybe specifically, you can help us think about bending the curve for the non-legacy businesses? Do we start to see is the fourth quarter just a slowing or quarterly decline? Is it a year-over-year kind of a discussion. I just want to make sure I understand the whole bend-the-curve notion and how to think about that.

也許只是在費用方面。你現在最早要把墨西哥保留到 2025 年。這樣書上的內容就會更長。我們如何看待彎曲曲線的討論？也許具體來說，您可以幫助我們考慮扭轉非傳統業務的曲線？我們是否開始看到第四季度只是放緩或季度下降？這是一種逐年討論嗎？我只是想確保我理解整個曲線彎曲的概念以及如何思考它。

Thank you. Let me take that. I'd say a couple of things. So one, I'd reiterate the expense guidance that we've given for the full year. So that's the roughly $54 billion ex divestitures or the impact of divestitures, ex any impact from FDIC special assessment. Two, as we think about bending the curve, I look into 2024 and we're looking to bring the absolute expense dollars down from Q3 to Q4. So that bending of the curve will occur. It will occur despite having Mexico still part of the franchise. And we obviously still having Mexico impacts the magnitude of the bend, but it will bend Q3 to Q4.

謝謝。讓我來吧。我想說幾件事。因此，我要重申我們給出的全年費用指導。這就是大約 540 億美元的資產剝離或資產剝離的影響（不包括 FDIC 特別評估的任何影響）。第二，當我們考慮彎曲曲線時，我展望 2024 年，我們希望將絕對費用從第三季度下降到第四季度。這樣就會發生曲線的彎曲。儘管墨西哥仍然是特許經營權的一部分，但這種情況仍然會發生。顯然，墨西哥仍然會影響彎曲的幅度，但它會將第三季度彎曲到第四季度。

And then beyond that and through the medium-term, we will see the curve continue to bend. Again, Mexico impacts the magnitude of the bend, but we're very, very focused on bringing our costs down and bending that curve. And you've heard us reference the aspects or the elements of our business that help contribute to that, not the least of which are the exits, one of which is Mexico, and you referenced the timing there but also the benefits from the investments that we've been making in transformation and risk and controls and shifting from manual processes to technology-enabled ones.

除此之外，從中期來看，我們將看到曲線繼續彎曲。墨西哥再次影響了彎曲的幅度，但我們非常非常專注於降低成本並彎曲該曲線。您已經聽到我們提到了有助於實現這一目標的業務方面或要素，其中最重要的是退出，其中之一是墨西哥，您提到了那裡的時機，也提到了投資的好處我們一直在進行轉型、風險和控制，並從手動流程轉向技術驅動的流程。

And then the final one is around simplifying our organization. And you heard in Jane's prepared remarks, as we continue to make progress on these exits it opens up the opportunity for us to lean more heavily into that simplification. So we are focused on not only the guidance, but the bending of the curve, as you point out, and looking forward to delivering that and taking actions to ensure we do.

最後一項是簡化我們的組織。您在簡準備好的講話中聽到了，隨著我們繼續在這些退出方面取得進展，這為我們提供了更加傾向於簡化的機會。因此，正如您所指出的，我們不僅關注指導，而且關注曲線的彎曲，並期待實現這一目標並採取行動確保我們做到這一點。

So just as a follow-up, is there a way to think about sort of 2025 and beyond as you get through a lot of the automation on the sort of the non-legacy businesses and start to get much more efficient there. Can we -- is there an absolute expense decline story in the core business? Or is that more of a -- you need the top line growth to get the improved returns?

因此，作為後續行動，當你完成非傳統業務的大量自動化並開始提高效率時，是否有辦法考慮 2025 年及以後的情況。我們能否——核心業務中是否存在絕對費用下降的故事？或者這更像是——您需要營收增長才能獲得更高的回報？

Again, it's going to be a combination of continuing to bend the curve and bring our expenses down. Obviously, we've given you guidance on operating efficiency of less than 60%, which will be some of that top line growth, but it's the combination of the two.

同樣，這將是繼續彎曲曲線和降低我們的開支的結合。顯然，我們已經為您提供了低於 60% 的運營效率指導，這將是營收增長的一部分，但它是兩者的結合。

And our next question comes from Betsy Graseck with Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Betsy Graseck。

I just wanted to confirm on the CET1. You have 100 basis point buffer on top of regulatory minimums. So that would suggest that the 13.3% that you got this quarter is in line with where you're planning on holding it going forward. Is that fair?

我只是想確認一下CET1的情況。除了監管最低標準之外，您還有 100 個基點的緩衝。因此，這表明您本季度獲得的 13.3% 與您計劃繼續持有的水平一致。這公平嗎？

Yes. So you're right, we hit 13.3% this quarter, down a tad bit from the 13.4% last quarter. Effective October 1, the 4.3% SCB comes into play. And so that would equate to assuming the 100 basis point management buffer at 12.3% regulatory requirement and a 13.3% kind of target that we would manage to.

是的。所以你是對的，本季度我們達到了 13.3%，比上季度的 13.4% 略有下降。 4.3% 的 SCB 自 10 月 1 日起生效。因此，這相當於假設監管要求為 12.3%，管理緩衝為 100 個基點，而我們將設法實現 13.3% 的目標。

I'd highlight a couple of things that I'm sure are obvious to you, Betsy. One is this is the stress capital buffer for the 12-month period starting October 1. And two is the strategy that we've described and talked about and have started to execute against is intentionally designed to help morph the business towards a more steady, predictable, consistent stream of revenues, fee revenue growth as well as bring our expenses down over time, and exit these markets, and those things should contribute to reducing our stress capital buffer over time and improving our returns. But to answer to your question very directly is, yes, the 13.3% would reflect where we'd be targeting as of October 1, for now.

我想強調一些我確信對你來說顯而易見的事情，貝特西。一是這是從 10 月 1 日開始的 12 個月期間的壓力資本緩衝。二是我們已經描述和討論並開始執行的戰略是有意設計的，旨在幫助業務朝著更穩定、更穩定的方向發展。可預測的、持續的收入流、費用收入增長以及隨著時間的推移降低我們的開支，並退出這些市場，這些事情應該有助於隨著時間的推移減少我們的壓力資本緩衝並提高我們的回報。但要非常直接地回答你的問題，是的，13.3% 反映了我們目前截至 10 月 1 日的目標。

And since you mentioned you're evaluating buybacks quarter-by-quarter. I guess the question here is, how should I think about that relative to we get Basel endgame coming out soon because clearly, when you're at 13.3% against the new rate cap SEB, you -- it signals a bigger opportunity for buybacks over the coming quarters. So how should I think about that?

既然您提到您正在逐季度評估回購。我想這裡的問題是，相對於我們即將推出的巴塞爾殘局，我應該如何考慮這一點，因為很明顯，當你相對於新的利率上限 SEB 達到 13.3% 時，你——這標誌著回購的更大機會未來幾個季度。那麼我應該如何考慮呢？

I think consistent with what we've been talking about. There's a lot of uncertainty out there about the new capital requirements, both in terms of the nature of them and the timing of implementation. I think the industry is expecting to get more clarity about that with the comment period that will be coming up.

我認為與我們一直在談論的一致。新資本要求的性質和實施時間都存在很多不確定性。我認為業界期望在即將到來的評論期中對此有更清晰的了解。

Plus it's a fairly uncertain macroeconomic environment at the moment. So both Mark and I feel it's prudent to continue making that assessment until some of this uncertainty is clarified as to what precisely will do. You should take confidence that we're at the levels, including the management buffer that we expect to be for the rest of the year. We've proven a good case of being able to build capital. That's for sure over the last 2 years. And you take comfort as well. We increased the dividend. We had $2 billion of capital returned last quarter. So our intentions are clear to return capital where we can, but also to be prudent in how we do so, given environment and current regulatory uncertainty.

另外，目前的宏觀經濟環境相當不確定。因此，馬克和我都認為繼續進行評估是明智的做法，直到澄清一些不確定性到底會做什麼。您應該對我們的水平充滿信心，包括我們預計今年剩餘時間的管理緩衝。我們已經證明了能夠建立資本的良好案例。在過去的兩年裡這是肯定的。你也會感到安慰。我們增加了股息。上個季度我們返還了 20 億美元的資本。因此，我們的意圖很明確，即盡可能返還資本，但考慮到環境和當前監管的不確定性，我們也會謹慎行事。

Our next question comes from Mike Mayo with Wells Fargo.

我們的下一個問題來自富國銀行的邁克·梅奧。

One negative question, one positive question. So on the negative side, you talked about betting the cost curve, but I think second quarter year-over-year it's bending the wrong way. And 6 quarters from now, you're saying it should bend the other way. So what are we not seeing in the financials that gives you such confidence? Because it seems based on this quarter's results, a little bit more of a trustee story. And on the positive side, TTS continued double-digit growth, you continue to invest more in that business. How are you monetizing greater money motion among your multinational and other clients?

一個消極問題，一個積極問題。因此，從消極的一面來看，您談到了押注成本曲線，但我認為第二季度同比它正在以錯誤的方式彎曲。六個季度後，你說它應該向另一個方向彎曲。那麼，我們在財務數據中沒有看到什麼讓您如此有信心呢？因為它似乎是基於本季度的業績，更像是一個受託人的故事。從積極的一面來看，TTS 持續實現兩位數增長，您將繼續在該業務上投入更多資金。您如何將跨國公司和其他客戶之間更大的資金流動貨幣化？

Thanks, Mike. I'll kick it off and then send it back to Mark. In terms of the expense side, I think we've been very transparent about the arc of our investment spend related to both the transformation and beyond. We'll continue to give you that transparency, Mike. Not last year, we hit our expense guidance. This year, we're on track for the guidance of roughly the $54 billion ex FDIC in divestitures and looking forward, we continue to guide what are the 3 levers that will drive the reduction in the expense curve starting at the end of '24. It's from the exits and I think you've got a clear sense around the progress that we have been making on the divestitures.

謝謝，邁克。我會把它踢掉然後把它發回給馬克。在費用方面，我認為我們對與轉型及其他相關的投資支出的弧線非常透明。邁克，我們將繼續為您提供透明度。與去年不同的是，我們達到了費用指導。今年，我們有望獲得大約 540 億美元的前 FDIC 資產剝離指導，展望未來，我們將繼續指導從 24 年底開始推動費用曲線下降的 3 個槓桿。這是來自出口，我認為您對我們在資產剝離方面取得的進展有了清晰的認識。

And therefore, we're pivoting, as we talked about, to focus now on really tackling the stranded expenses as we close off the final couple of sales there in Asia in the next few months. We'll realize the benefits for our investments in transformation and controls over the medium-term. We'll also have the benefit of the remediation work getting done and expenses going away from that. And then the third one will be simplifying the organization, as we talked about. So we'll continue to walk you step by step. What are the different actions we're taking, what are we doing? And hopefully, we are building up that track record of doing what we will say we are going to do every quarter. Mark, are you going to add?

因此，正如我們所談到的，我們現在正在轉向真正解決擱淺的支出，因為我們將在未來幾個月內完成在亞洲的最後幾筆銷售。我們將在中期實現我們在轉型和控制方面的投資的好處。我們還將受益於修復工作的完成和由此產生的費用。第三個目標是簡化組織，正如我們所討論的。因此，我們將繼續一步步引導您。我們正在採取哪些不同的行動，我們在做什麼？希望我們能夠建立我們每個季度要做的事情的記錄。馬克，你要補充嗎？

The only thing, on the expense side, and then you may want to touch on the TTS. But the only add on the expense side is the -- we are taking repositioning charges, Mike. I mean we're not sitting still as we go through this uncertain period of time where wallets across certain parts of the industry are under significant pressure. And in taking those repositioning charges, there are going to be expense reductions that ultimately play out over the next 12-month period. So that's the other factor in addition to what Jane mentioned in the way of exits and benefits from the transformation that will play into the cost base over the next 12 months.

唯一的事情是，在費用方面，然後你可能想觸及 TTS。但費用方面唯一增加的是——我們正在收取重新定位費用，邁克。我的意思是，在我們經歷這段不確定的時期時，我們並沒有坐以待斃，行業某些部分的錢包面臨著巨大的壓力。通過收取這些重新定位費用，最終將在未來 12 個月內實現費用削減。因此，這是除了 Jane 提到的退出方式和轉型帶來的好處之外的另一個因素，這些因素將影響未來 12 個月的成本基礎。

And then on TTS, I think we all share your enthusiasm for this business in terms of the growth potential that we've been realizing and expect to continue, albeit converging now to the medium-term guidance over the next few quarters where we see it's a high to medium single-digit growth going forward. It's a very high-returning business and some of the indicators of how we're monetizing those relationships. We're seeing it both in terms of new client wins, they were up 41% this quarter. We have a sustained win loss ratio of 80% on the new deals across different client segments. We're also seeing growth that's starting to really kick in from our commercial bank and the expansion of clients in the middle market around the world as we grow out that franchise.

然後在 TTS 方面，我認為我們都對這項業務充滿熱情，因為我們已經意識到並期望繼續增長潛力，儘管現在與未來幾個季度的中期指導一致，我們認為它是未來將實現高至中個位數增長。這是一項回報率非常高的業務，也是我們如何利用這些關係獲利的一些指標。我們在新客戶贏得方面都看到了這一點，本季度他們增長了 41%。我們在不同客戶群的新交易中保持了 80% 的持續贏輸率。隨著我們擴大特許經營權，我們還看到我們的商業銀行和全球中間市場客戶的擴張開始真正開始增長。

And we've got some very good fee growth, which as Mark points out, and I point out all the time, we're very focused around across-border, up 11% U.S. dollar clearing up 6%, commercial cards up 15%, et cetera. And we continue to invest in the business as well, so to make sure that, that 80% win ratio continues. So first bank to launch 24/7, 365 clearing. Our U.S. dollar clearing. We've got the instant payments platform. We just launched for e-commerce clients. We have Payments Express that is now live in the U.S. on track for 5 markets by the year-end. So it's a story of innovation. It's a story of investment. It's got great returns. It's a good growth story. And it just -- it keeps on going.

我們的費用增長非常好，正如馬克所指出的，我一直指出，我們非常關注跨境業務，費用增長了 11%，美元清算增長了 6%，商業卡增長了 15%等等。我們也繼續投資該業務，以確保 80% 的勝率持續下去。因此首先銀行推出24/7、365清算。我們的美元清算。我們有即時支付平台。我們剛剛為電子商務客戶推出。我們的 Payments Express 現已在美國上線，預計到年底將在 5 個市場推出。所以這是一個創新的故事。這是一個投資的故事。它得到了豐厚的回報。這是一個很好的成長故事。而且它只是——它繼續下去。

And I don't want to diminish security services in there either. It's another business that's similarly, continuing to see significant client wins up 65% versus last year as well. And a lot of our strategy there has been focused on gaining share with the asset managers in North America. Couple of years ago, we were down at 2.6% share. We're up about 4.3%. Our target is about 5.5% there in 2025 in that key growth area. I know there's a lot to like here too.

我也不想減少那裡的安全服務。這是另一項類似的業務，與去年相比，繼續看到大客戶贏得了 65% 的增長。我們在那裡的很多戰略都集中在贏得北美資產管理公司的份額。幾年前，我們的份額下降到 2.6%。我們上漲了約 4.3%。我們的目標是到 2025 年該關鍵增長領域的增長率約為 5.5%。我知道這裡也有很多值得喜歡的地方。

And our next question comes from Erika Najarian with UBS.

我們的下一個問題來自瑞銀集團的埃里卡·納賈里安。

So I apologize having to ask the expense question again, but I think it's just very important because there's really to -- potential long-only investment thesis on Citi, right? One is the buyback given your tangible book values at [85] and the stocks at [46] and the other is this bending the curve on expenses. So let me just ask Jim's question another way. In looking back to 2017, and I'm just looking at 2017 because I can break out legacy and core that way. And fast forward to 2022, you produced revenues ex legacy franchises about $61 billion in 2017 and about $67 billion in 2022. The associated expenses, again, without legacy franchises was about $34.5 billion in 2017 versus $43.5 billion in 2022, so you're surpassing the revenue uplift during that period by $3 billion.

因此，我很抱歉不得不再次詢問費用問題，但我認為這非常重要，因為花旗確實存在潛在的多頭投資論點，對吧？一是回購，考慮到你的有形賬面價值為 [85]，股票為 [46]，另一個是彎曲支出曲線。讓我用另一種方​​式問吉姆的問題。回顧 2017 年，我只關注 2017 年，因為我可以通過這種方式突破傳統和核心。快進到 2022 年，您在 2017 年產生的不包括傳統特許經營權的收入約為 610 億美元，到 2022 年約為 670 億美元。同樣，如果不考慮傳統特許經營權，2017 年的相關費用約為 345 億美元，而 2022 年為 435 億美元，所以您超越了在此期間收入增加了 30 億美元。

I guess the question is, you have so much certainty about the timing of this expense and I'm wondering how much of this $9 billion can go away? We understand that there's a lot of opportunity for reinvestment in the core business. But I think all of us are struggling to really understand that magnitude. And I think that the investor base in the market fully understands the legacy franchise story and how the exits will take time. But I think they're most interested in the core business and how much of that can come out.

我想問題是，你對這筆開支的時間安排非常確定，我想知道這 90 億美元中可以花掉多少？我們知道核心業務有很多再投資的機會。但我認為我們所有人都在努力真正理解這個規模。我認為市場上的投資者基礎完全理解傳統特許經營的故事以及退出將如何需要時間。但我認為他們最感興趣的是核心業務以及可以實現多少。

Yes, sure. Look, no need to apologize for asking the question again. It's an important -- it's an important topic. I'd say a couple of things. So one is that we can certainly look back in time, but I would highlight that we're here because we needed to have invested more in our franchise. And so undoubtedly, there's going to be an increase in our expense base that reflects the underinvestment from the past and ensuring up safety and soundness and actually moving towards a more automated operational, more modernized operations and infrastructure. So there's certainly going to be that.

是的，當然。聽著，沒必要因為再次問這個問題而道歉。這是一個重要的話題。我想說幾件事。因此，一是我們當然可以回顧過去，但我要強調的是，我們之所以來到這裡，是因為我們需要對我們的特許經營權進行更多投資。因此，毫無疑問，我們的支出基礎將會增加，這反映了過去的投資不足，確保了安全性和穩健性，並實際上朝著更加自動化的運營、更加現代化的運營和基礎設施邁進。所以肯定會有這樣的情況。

With that said, with those investments come efficiencies. So with the move from manual to automation over time, those types of investments will yield benefits in our cost structure. And that's part of what is going to bend the curve over that medium-term period. The other thing that I'd highlight is, obviously, with the legacy franchises, there's $7 billion of expense associated with those, and that will come down. But that -- but because of the Mexico transaction, we're going to be stuck with that a little bit longer given the IPO process. It doesn't put a big dent in our ability to bring stranded cost down and by the way, it does come with top line revenues and historically has been accretive to our profitability and returns.

話雖如此，這些投資帶來了效率。因此，隨著時間的推移，從手動轉向自動化，這些類型的投資將為我們的成本結構帶來好處。這也是中期曲線彎曲的一部分。我要強調的另一件事是，顯然，對於傳統特許經營權，與之相關的費用為 70 億美元，而且這一數字將會下降。但是，由於墨西哥的交易，考慮到 IPO 流程，我們將在這個問題上停留更長的時間。它不會對我們降低擱淺成本的能力造成太大影響，順便說一句，它確實帶來了頂線收入，並且從歷史上看一直在增加我們的盈利能力和回報。

And so I highlight -- I'm not going to give you kind of new guidance on where our expenses will end up. But what I will point you to is not only the [54] this year, roughly 54 this year, not only the bending of the curve in the third and fourth quarter or the third to the fourth quarter next year. But we've given guidance on top line growth revenue of 5%, call it CAGR through that medium-term period, and we've given you kind of operating efficiency targets that we've said as well, and we intend to deliver on those things that reflect the bending of that curve through all of those drivers that we've mentioned.

因此，我強調，我不會就我們的開支最終去向向您提供新的指導。但我要給大家指出的不僅僅是今年的[54]，今年大約是54，不僅僅是第三、第四季度或者明年第三到第四季度的曲線彎曲。但我們給出了收入增長 5% 的指導，稱之為中期復合年增長率，我們也給了你們我們說過的運營效率目標，我們打算實現這些因素通過我們提到的所有驅動因素反映了曲線的彎曲。

So I hope that helps, Erika. I appreciate the focus on both capital and expenses. We are equally focused on it and know just how important it is to achieving those targets. We're not only kind of doing the things that we've highlighted in that strategy articulation, but we're also being responsive to the current environment that we're in. We think that aids in our ability to deliver the targets and the bending of the curve, and we know there's an additional opportunity that Jane has referenced to the simplification of the organization as we make -- what I would argue is considerable progress on the exits towards the end of this year. And all of those things will be important to ensuring we get to that lower cost base, which we will do.

所以我希望這會有所幫助，埃里卡。我很欣賞對資本和支出的關注。我們同樣關注它，並且知道它對於實現這些目標有多麼重要。我們不僅在做我們在戰略闡述中強調的事情，而且還在對我們當前所處的環境做出反應。我們認為這有助於我們實現目標和目標的能力曲線的彎曲，我們知道還有一個額外的機會，簡提到了我們所做的組織簡化——我認為是在今年年底的退出方面取得了相當大的進展。所有這些事情對於確保我們實現更低的成本基礎非常重要，我們將這樣做。

And it's a laser micro focus from us to make sure that we have the plans in place and the execution to be able to achieve it. This is something that's -- we're extremely hands-on around and making sure that, that is going to get done on each of the different drivers that Mark talked about.

這是我們的激光微聚焦，以確保我們有適當的計劃和執行力來實現它。這是我們非常親力親為的事情，並確保馬克談到的每個不同的驅動程序都能完成。

All right. And just a follow-up on that. I guess, you guys have been pretty clear on the timing, and you guys have been pretty clear on why the curve will bend. I guess I'm wondering -- is it just a timing issue that you're not giving us the sort of the dollar numbers that could go away from the transformation? Is it just a timing issue? Or are you still at a point where you don't know how much of that you would need to reinvest to arrive at that 5% revenue CAGR?

好的。這只是後續行動。我想，你們對於時間安排已經非常清楚，並且對於曲線會彎曲的原因也非常清楚。我想我想知道——你們沒有向我們提供可能會因轉型而消失的美元數字，這是否只是一個時間問題？這只是時間問題嗎？或者您是否仍然不知道需要再投資多少才能達到 5% 的收入複合年增長率？

Sorry, your question was around expenses or the revenue?

抱歉，您的問題是關於支出還是收入？

Expenses. So we get loud and clear why the curve will bend. We get loud and clear when the curve will bend, right? And there's clearly just expenses there that our catch-up expenses that are transformational expenses to everything that Jane talked about. And that message has been loud and clear. And I'm wondering if you haven't told us what could come out of those expenses because it's just a timing issue. It's July 14th versus 4Q '24? Or have you not yet made decisions in terms of how you may allocate those expenses in terms of do you need some of those expenses that could come out to grow your revenue base to that 5% CAGR versus having it fall to the bottom line? Sorry, that's the question.

花費。這樣我們就清楚為什麼曲線會彎曲。當曲線彎曲時，我們會變得響亮而清晰，對嗎？顯然，我們的追趕費用只是簡談到的所有費用的轉型費用。這個信息是響亮而明確的。我想知道您是否沒有告訴我們這些費用會產生什麼結果，因為這只是一個時間問題。這是 7 月 14 日還是 24 年第四季度？或者您是否還沒有決定如何分配這些費用，即您是否需要其中一些費用來將您的收入基礎增長到 5% 的複合年增長率，而不是讓它落到底線？抱歉，這就是問題。

Got it. Jane, do you want to start or?

知道了。簡，你想開始嗎？

No, go ahead.

沒有，繼續。

Yes. So I'd say a couple of things. So one, Erika, is obviously, with that revenue CAGR will be volume-related expenses that play out. But we're also focused, obviously, on the nonvolume-related expenses and not giving you a precise number because the magnitude of that bend, right, is a factor, right? So obviously, Mexico, for example, as I mentioned earlier, impacts the magnitude of the bend, right? And we're going to and have, in fact, when you look at our expense base even for the quarter, we've spent money in Mexico to drive that top line 22% revenue growth, 10% ex FX.

是的。所以我想說幾件事。因此，埃里卡（Erika）顯然是，收入的複合年增長率將是與數量相關的支出。但顯然，我們也關注與數量無關的費用，而不是給你一個精確的數字，因為彎曲的幅度是一個因素，對嗎？很明顯，例如，正如我之前提到的，墨西哥會影響彎曲的幅度，對吧？事實上，當你看看我們本季度的支出基礎時，我們將會並且已經在墨西哥投入了資金，以推動收入增長 22%（不含外匯）10%。

And so there are going to be nuances in the running of the business in a way that ensures we're maximizing shareholder value that impacts the magnitude of the bending of that expense curve. Investments that I got to continue to make in TTS in order to maintain that #1 position in that competitive advantage that we have. And so those things will impact that magnitude of the bend. We've been, I think, very transparent as we get into each year, giving you concrete numbers. What I'm telling you is the curve will bend. And as we get closer to 2024, we'll give you more direction on the magnitude for that year and beyond.

因此，業務運營中將會存在細微差別，以確保我們最大化股東價值，從而影響費用曲線彎曲的幅度。我必須繼續在 TTS 上進行投資，以保持我們擁有的競爭優勢中的第一名位置。所以這些因素會影響彎曲的幅度。我認為，每年我們都非常透明，為您提供具體的數字。我告訴你的是曲線會彎曲。隨著 2024 年的臨近，我們將為您提供有關當年及以後的規模的更多指導。

Our next question comes from Steven Chubak with Wolfe Research.

我們的下一個問題來自 Wolfe Research 的 Steven Chubak。

Wanted to ask a question on capital. Just given the recent increase in your SCB, I was hoping to better understand why the 11.5% to 12% remains the appropriate long-term objective in your mind? And as we prepare for Basel III endgame, think through the capital benefit from future asset sales, can you speak to whether that will translate into operational risk capital relief specifically as it's less clear whether those benefits will accrete even as those asset sales are consummated?

想問一個關於資本的問題。鑑於您最近 SCB 的增加，我希望更好地理解為什麼 11.5% 至 12% 仍然是您心目中合適的長期目標？當我們為巴塞爾協議 III 的最後階段做準備時，請考慮一下未來資產出售的資本收益，您能否談談這是否會轉化為操作風險資本減免，因為即使資產出售完成，這些收益是否會增加還不太清楚？

I'll kick it off, Mark, and then pass it to you. So when we look -- we're confident we're going to meet 11% to 12% RoTCE target over the medium-term. The core drivers of how we get there remains unchanged.

我先把它開始，馬克，然後把它交給你。因此，當我們展望時，我們有信心在中期內實現 11% 至 12% 的 RoTCE 目標。我們實現這一目標的核心驅動因素保持不變。

One, it's the revenues that we expect to grow by 4% to 5% CAGR as we continue to execute on the strategy. On expenses, it's the clear path to bend the curve by the end '24, bringing those expenses down over the medium-term. And third and importantly, it's continuing to optimize our balance sheet including improving RWA and capital efficiency. And as we referenced earlier in the prepared remarks, different drivers in that, that are helpful exiting 14 international consumer markets, changing our business mix. And I'd also note that the transformation has benefits not only for our efficiency, but it will also support RWA and capital optimization.

第一，隨著我們繼續執行該戰略，我們預計收入複合年增長率將增長 4% 至 5%。在支出方面，這是到 24 年底扭轉曲線的明確路徑，從而在中期降低這些支出。第三，也是重要的一點，它正在繼續優化我們的資產負債表，包括提高 RWA 和資本效率。正如我們之前在準備好的發言中提到的，其中的不同驅動因素有助於退出 14 個國際消費市場，從而改變我們的業務組合。我還想指出的是，這種轉型不僅有利於我們的效率，而且還將支持 RWA 和資本優化。

That said, there's uncertainty around the future capital requirements in the industry and importantly, the timing of their implementation. We like everyone again to have to work through those implications once we know what they are. But as we said, Keep in mind, we've got some other levers to pull over time, capital allocation, DTA allocation and utilization, our G-SIB score and our management buffer of 100 basis points. So that's where you hear the confidence for us -- from us around the path to executing in that remaining consistent. But Mark, why don't I hand over to you just around consumer market sales and operational RWA relief.

也就是說，該行業未來的資本要求以及重要的是其實施時間都存在不確定性。一旦我們知道這些影響是什麼，我們希望每個人都必須再次解決這些影響。但正如我們所說，請記住，隨著時間的推移，我們還有一些其他槓桿可以拉動，包括資本配置、DTA 分配和利用、我們的 G-SIB 評分以及 100 個基點的管理緩衝。因此，這就是您對我們的信心——來自我們在執行過程中保持一致的信心。但是馬克，我為什麼不把消費者市場銷售和運營 RWA 減免的工作交給你呢？

Sure. And again, I think that if you look at the transactions that we've closed to date, they've generated or freed up about $4.6 billion of capital. The two that remain to be closed and the balance of the year will generate another $1.2 billion or so. That will be important to our capital base. I think that we obviously have to see the proposal as it comes out and the NPR. And we have to -- we'll have a window to respond to that. We're hopeful that the regulators hear our response and views on it as it comes out. There's clear -- there's clearly going to be a reference to increases in RWA and operational risk implications potentially as part of that. I do think that exiting without having seen the proposal, and without obviously knowing how those rules might evolve.

當然。再說一遍，我認為，如果你看看我們迄今為止已完成的交易，就會發現它們已經產生或釋放了約 46 億美元的資本。仍有待關閉的兩個項目以及今年剩餘的項目將再產生 12 億美元左右的收入。這對我們的資本基礎很重要。我認為我們顯然必須看到該提案的出台以及 NPR 的報導。我們必須——我們將有一個窗口來對此做出回應。我們希望監管機構能夠聽到我們對此的回應和看法。很明顯，其中可能會提到 RWA 的增加和操作風險影響。我確實認為，在沒有看到該提案、並且明顯不知道這些規則可能如何演變的情況下就退出。

I do believe that the exiting of these 14 markets does play towards not only reducing our SCB in stress scenarios or as it comes out of stress analysis and tests, but also should play through helping to reduce risk-weighted assets and potentially operational risk as well. But we have to see what the proposal looks like and go through that. And I think what's important here is that whenever it comes out, whatever it looks like, as we dissect it and go through it, we'll figure out how to manage through it, right, whether that be through exiting certain products, seeking price adjustments as it relates to customers, clients and the markets or continuing to optimize RWAs and we have been doing very proactively, we'll figure out how to manage.

我確實相信，這 14 個市場的退出不僅有助於減少我們在壓力情景下或壓力分析和測試中得出的 SCB，而且還應有助於減少風險加權資產和潛在的操作風險。但我們必須看看該提案是什麼樣子並進行討論。我認為這裡重要的是，無論它什麼時候出現，無論它是什麼樣子，當我們剖析它並仔細研究它時，我們都會弄清楚如何管理它，對吧，無論是通過退出某些產品，尋求價格與客戶、客戶和市場相關的調整，或者繼續優化 RWA，我們一直在非常積極地做，我們將弄清楚如何管理。

And I feel compelled to jump in here as well because as the spring and the recent test results showed the large U.S. banks are not only in a strong capital position, but we've been able to play an important stabilizing role for the system as a whole. It's a role that we take very seriously. And we certainly hope that as the details of the capital frameworks get unveiled, this is fully taken into consideration, including the impact on U.S. competitiveness. And we need a level playing field with Europe, not a gold-plated one.

我也覺得有必要介入這裡，因為春季和最近的測試結果表明，美國大型銀行不僅擁有強大的資本狀況，而且我們已經能夠作為一個系統發揮重要的穩定作用。所有的。我們非常重視這個角色。我們當然希望，隨著資本框架細節的公佈，這一點能夠得到充分考慮，包括對美國競爭力的影響。我們需要與歐洲建立一個公平的競爭環境，而不是鍍金的環境。

And we share the concern that higher capital levels will undoubtedly increase the cost of capital for medium and smaller sized enterprises and consumers in particular, and will drive more activity to nonregulated and lesser capitalized players that isn't in the system's interest. And we hope that, that's fully taken into consideration here because we will take actions on businesses, and we will take pricing actions as well the entire industry.

我們同樣擔心，更高的資本水平無疑會增加中小型企業和消費者的資本成本，並將推動更多活動流向不受監管和資本較少的參與者，這不符合系統的利益。我們希望，這一點在這裡得到充分考慮，因為我們將對企業採取行動，我們將對整個行業採取定價行動。

Really important point.

非常重要的一點。

Thanks for that perspective, Jane, very well said. Just one quick follow-up for me. PBWM fee income trends given the lower partner payments, I mean, clearly, the wealth fee trends were -- would suggest that they were quite subdued in the quarter. And I just wanted to understand your outlook over the near- to medium-term what drove some of the weakness this quarter? Is it something that you expect will likely persist, especially given some of the market tailwinds that we've been seeing would have expected to see a little bit more resiliency in wealth fee income in particular?

謝謝你的觀點，簡，說得很好。對我來說只是一個快速跟進。考慮到合作夥伴付款額較低，PBWM 費用收入趨勢，我的意思是，顯然，財富費用趨勢——表明它們在本季度相當低迷。我只是想了解您對中短期的展望是什麼導致了本季度的一些疲軟？您是否預計這種情況可能會持續下去，特別是考慮到我們已經看到的一些市場順風，預計財富費用收入會更具彈性？

Yes. Look, I think as we mentioned, wealth was down about 5%. It's really hard to talk about the rebound in wealth in the midst of such an uncertain environment and the one that we're in, it's hard to disconnect those macro factors like rates, inflation, the prospect of a recession from what we're seeing in wealth. And I think there are 2 dynamics that have played out. One has been the shift from our customers, from customers more broadly into higher-yielding products from out of deposits. And the other has been the fee revenue from an investment management fee point of view, and as you might think about it, it is a higher rate environment. There are opportunities for clients to earn more. And not until there's greater certainty in the broader macro factors, well, I think we start to see some real momentum tick up there.

是的。看，我想正如我們提到的，財富下降了約 5%。在如此不確定的環境和我們所處的環境中，很難談論財富的反彈，很難將利率、通脹、衰退前景等宏觀因素與我們所看到的情況分開在財富中。我認為有兩種動力已經發揮出來。其中之一是我們的客戶，從更廣泛的客戶，從存款轉向收益率更高的產品。另一個是從投資管理費的角度來看的費用收入，正如你可能想到的那樣，這是一個更高的利率環境。客戶有機會賺取更多收入。直到更廣泛的宏觀因素變得更加確定，我認為我們才開始看到一些真正的勢頭正在增強。

Now with that said, and a couple of things worth reiterating, which is we're seeing very strong referral momentum from the retail banking business up through the wealth continuum, if you will. So we've had about 25,000 referrals May year-to-date from our retail branches into our broader wealth business, that's a good thing. We've seen the number of clients that we've onboarded tick up pretty meaningfully, both in the private bank and more broadly across wealth. That's a good thing. Those are things that position us well for when greater certainty does play out and these clients start to put monies back to work in the broader investment platform and offering that we have.

話雖如此，有幾件事值得重申，那就是我們看到從零售銀行業務到財富連續體的非常強勁的推薦勢頭，如果你願意的話。今年 5 月至今，我們已經有大約 25,000 名客戶從我們的零售分支機構轉介到我們更廣泛的財富業務，這是一件好事。我們已經看到，我們的客戶數量大幅增加，無論是在私人銀行還是更廣泛的財富領域。這是好事。當更大的確定性確實出現並且這些客戶開始將資金重新投入到我們擁有的更廣泛的投資平台和產品中時，這些事情使我們處於有利地位。

And our next question comes from Ebrahim Poonawala with Bank of America.

我們的下一個問題來自美國銀行的 Ebrahim Poonawala。

Just one quick question, Mark, for you. On the consumer cards book, you gave some metrics. One, remind us what you reserved for in terms of unemployment rate, macro? And if we do and whether if we do see (inaudible) the market, does that necessarily mean that we'll see big ratcheting up of credit result where you already are? Just some color around that would be helpful.

馬克，我只想問你一個簡單的問題。在消費者卡片書中，您給出了一些指標。一，請提醒我們您對宏觀失業率有何保留？如果我們這樣做，以及如果我們確實看到（聽不清）市場，這是否一定意味著我們會看到信貸結果大幅上升？只要周圍有一些顏色就會有幫助。

Sorry, just the last part of your question, I'm sorry, if we do see what?

抱歉，只是你問題的最後一部分，抱歉，如果我們確實看到了什麼？

Yes. So one, like where are you in terms of your unemployment rate assumption? And if the unemployment outlook worsens, let's say, over the next 6 to 12 months, does that mean that you are already reserved? Or will we see another big pickup in provisioning as a result of that?

是的。那麼，就失業率假設而言，您的情況如何？如果失業前景惡化，比如說，在未來 6 到 12 個月內，這是否意味著您已經有所保留？或者我們會因此看到供應量再次大幅增加嗎？

Got it. Thank you. Look, our current reserves, as you know, as we think about CECL, we've got 3 different scenarios. We've got a base case in upside, a downside. Our current reserves are based on the mix of those 3 macroeconomic scenarios. It reflects about a 5.1% unemployment rate on a weighted basis over the 8 quarters, and it's roughly flat to what it was last quarter. What that means is, obviously, our downside scenario has unemployment that's much higher than that, closer to 7% or call it 6.8% or so. But that's kind of how we've thought about unemployment.

知道了。謝謝。你看，我們目前的儲備，如你所知，當我們考慮 CECL 時，我們有 3 種不同的情況。我們有一個有利的基本情況，也有一個不利的情況。我們當前的儲備是基於這三種宏觀經濟情景的組合。它反映了 8 個季度加權失業率約為 5.1%，與上季度大致持平。顯然，這意味著我們的下行情景中失業率遠高於此，接近 7% 或稱 6.8% 左右。但這就是我們對失業的看法。

As we think about the reserves each quarter, obviously, we take a look at the macroeconomic factors and how they're evolving. Our base case today assumes a mild recession and reserves in the future will consider how are weighting towards downside, upside in baseline may more subject to our outlook and volumes. Those are the 2 factors that influence whether we're increasing reserves or not.

顯然，當我們每個季度考慮儲備時，我們都會關注宏觀經濟因素及其演變情況。我們今天的基本情景假設經濟出現溫和衰退，未來的準備金將考慮如何權衡下行趨勢，基線上行趨勢可能更取決於我們的前景和交易量。這是影響我們是否增加儲備的兩個因素。

I would point out though that in addition to unemployment and because unemployment has been as stubborn as it has been, if you will, we also look at debt service coverage ratio as an important factor as we think about our consumers, as we think about their balance sheet, as we think about the risk that they may or may not be facing. So unemployment is an important factor. But we've flexed our thinking in light of the environment and in light of how behaviors have been shifting, and that's an important factor in how we think about our reserves as well. I feel very good about the level of our reserves. You heard us mention earlier, we've got $20 billion of reserves, we're well reserved across the portfolio, but those are all important elements to it.

我想指出的是，除了失業之外，因為失業率一直如此頑固，如果你願意的話，我們還將償債覆蓋率視為一個重要因素，因為我們考慮我們的消費者，因為我們考慮他們的資產負債表，因為我們考慮他們可能面臨或可能不會面臨的風險。所以失業是一個重要因素。但我們根據環境和行為的變化改變了我們的想法，這也是我們如何看待我們的儲備的一個重要因素。我對我們的儲備水平感覺非常好。你之前聽到我們提到，我們有 200 億美元的儲備，我們在整個投資組合中都有充足的儲備，但這些都是它的重要元素。

That's helpful. And just one very simplistic question. When you talk to some of your largest shareholders, those who are optimistic think you can hit your RoTCE target medium-term by 2025. Is that a realistic expectation given I appreciate Basel changes, you answered like 10 questions on expenses. But should we expect the groundwork through '24 that we hit that medium-term target in '25 or just your degree of confidence.

這很有幫助。只是一個非常簡單的問題。當您與一些最大的股東交談時，那些樂觀的人認為您可以在 2025 年實現 RoTCE 中期目標。考慮到我欣賞巴塞爾協議的變化，這是一個現實的期望嗎？您回答了大約 10 個有關費用的問題。但我們是否應該期望在 24 年之前打好基礎，在 25 年實現中期目標，或者只是你的信心程度。

Yes. Again, the thing I'd point out and Jane, feel free to chime in here, is that what we talked about was getting to our medium-term returns, 11% to 12% and the medium-term is 25% to 26%, right? So it's not just 25%, just to be clear. And we do continue to feel very confident around our ability to do that. You heard us mention the levers that we think will contribute to that. Obviously, capital is important and how that evolves and we continue to kind of work to optimize the balance sheet while serving our clients effectively and importantly, growing the strong businesses that we have that are high returning as well.

是的。再次，我要指出的一件事是，簡，請隨意插話，我們談論的是中期回報率，11% 到 12%，中期回報率是 25% 到 26% ， 正確的？所以需要明確的是，這不僅僅是 25%。我們仍然對我們做到這一點的能力充滿信心。您聽到我們提到了我們認為有助於實現這一目標的槓桿。顯然，資本及其發展方式非常重要，我們將繼續努力優化資產負債表，同時有效且重要地為我們的客戶提供服務，發展我們擁有的高回報的強大業務。

And our next question comes from Matt O'Connor from Deutsche Bank.

我們的下一個問題來自德意志銀行的馬特·奧康納。

Actually, a follow-up on credit here. You talked about continued normalization of credit card in the back half of the year. And just wondering, you've got the normalized loss rates on Slide 22. Are you still thinking you'll hit those, I think, exiting this year or early next year. And then I think at one point, you said they might go a little bit above that before they kind of come back to a normal level? And is that still the case?

實際上，這裡是信用的後續行動。您提到下半年信用卡持續正常化。只是想知道，您已經在幻燈片 22 上得到了標準化損失率。我認為，您是否仍然認為自己會達到這些目標，在今年或明年初退出。然後我想在某一時刻，你說他們可能會稍微高於這個水平，然後才會回到正常水平？現在仍然如此嗎？

Yes. Thanks for the question. The answer is yes. We still expect for both portfolios to hit those normal levels sometime at the end of the year, the normal level, as you pointed out, on the page for both branded as well as for retail services. We would expect, again, subject to how and when this mild recession kind of plays out, we would expect that they would tick higher than that before getting back inside of that range.

是的。謝謝你的提問。答案是肯定的。我們仍然預計這兩個投資組合將在今年年底的某個時候達到正常水平，正如您所指出的，品牌和零售服務頁面上的正常水平。我們再次預計，根據這種溫和衰退的方式和時間，我們預計它們會高於該水平，然後才會回到該區間內。

But again, all of this is tied into how we've calculated our reserves, the delinquencies that we're seeing, the mix of the portfolio, which again skews towards your higher FICO scores and the customer behaviors that we're seeing, which play through not only that cost of credit line, but also plays through the growth that we referenced earlier in the top line. But the short answer is yes, that's still our thinking.

但同樣，所有這些都與我們計算準備金的方式、我們看到的拖欠情況、投資組合的組合有關，這再次偏向於您更高的 FICO 分數和我們看到的客戶行為，這不僅要考慮信貸額度成本，還要考慮我們前面在頂線提到的增長。但簡短的回答是肯定的，這仍然是我們的想法。

And as Mark said, I think we feel good about our positioning as a prime, but also a strong credit proposition that we have. We're seeing stronger demand for the credit-led products such as value cards, bulk on installment loans as well as the service-led engagement for the more prime customers. And so that's also going to be a valuable factor driving growth and profitability as well.

正如馬克所說，我認為我們對自己作為主要客戶的定位感到滿意，而且我們擁有強大的信用主張。我們看到對信用卡主導產品（例如儲值卡、批量分期貸款以及針對更優質客戶的服務主導參與）的需求更加強勁。因此，這也將成為推動增長和盈利能力的重要因素。

And then the follow-up, and this is not really Citi-specific, but for the card industry, a lot of the banks that are in card. Everyone is talking about kind of getting to normalized levels, just call it in the near-term here next couple of quarters. And I guess, just thoughts on getting this normalized level of losses when unemployment is all-time low, wages are growing. Obviously, there's inflationary pressures, but it's just a little surprising, again, not to say specific, but it's a little surprising that we're getting to this normalized state when things seem like they're pretty good.

然後是後續行動，這並不是花旗特有的，而是針對卡行業的，很多銀行都參與卡業務。每個人都在談論達到正常化水平，只是在接下來的幾個季度內稱之為近期。我想，只要想到在失業率處於歷史最低水平時實現這種正常化的損失水平，工資就會增長。顯然，存在通脹壓力，但這有點令人驚訝，再說一次，不是說具體的，但令人有點驚訝的是，當事情看起來相當不錯時，我們卻進入了這種正常化狀態。

Yes, I think well, also the normalized state back in 2019 is also pretty good. So you're not hearing any alarm bells ringing from Mark or myself at all here on the U.S. consumer. I think we see the U.S. consumer as resilient. We've talked about them being cautious that they're not recessionary. And we are seeing more pressure on the lower FICOs. We don't have a large number of that in our portfolio, but that is where we're seeing more of the normalization happening on the payment rates, for example, and other behaviors in there. So it's quite localized, but I don't think we should be overly concerned here about the health of the U.S. consumer.

是的，我想，2019年的正常化狀態也不錯。因此，你根本沒有聽到馬克或我本人對美國消費者敲響任何警鐘。我認為我們認為美國消費者俱有彈性。我們已經談到他們對自己不會陷入衰退持謹慎態度。我們看到較低的 FICO 承受著更大的壓力。我們的投資組合中並沒有大量此類產品，但我們在支付率和其他行為方面看到了更多的正常化。所以它是相當本地化的，但我認為我們不應該過度擔心美國消費者的健康。

And as Mark said, we're in a very unusual environment. Higher inflation, these rate levels and a strong labor market. And under those conditions, it's the debt service ratio, as he said, that is, we think, is a more useful leading indicator that we keep a close eye on.

正如馬克所說，我們處於一個非常不尋常的環境中。更高的通貨膨脹、這些利率水平和強勁的勞動力市場。在這種情況下，正如他所說，償債比率是我們密切關注的更有用的領先指標。

Just remember, it's a return to normal.

請記住，這是回歸正常。

And our next question comes from Gerard Cassidy with RBC.

我們的下一個問題來自加拿大皇家銀行的杰拉德·卡西迪。

Mark, can you share with us, in your financial supplement, obviously, you give us good details on your credit picture and we're talking about credit right now. The nonaccrual loans have been flat as a pancake for the last 12 months for you folks and the industry as well. And this is in line of the Fed funds rates, as we all know, have been up over 500 basis points. Can you guys share with us what's -- why we haven't seen more -- this is mostly corporate, of course, but everybody has been hanging in there very well in view of the fact that rates have gone up so much. What are your customers telling you or are you seeing that has enabled them to remain very healthy in light of a 500 basis point increase in interest rates?

馬克，您能否與我們分享一下，在您的財務補充中，顯然，您向我們提供了有關您的信用狀況的詳細信息，我們現在正在談論信用。對於你們和整個行業來說，過去 12 個月的非應計貸款一直表現平平。眾所周知，這與聯邦基金利率上漲超過 500 個基點是一致的。你們能否與我們分享一下為什麼我們沒有看到更多的情況——當然，這主要是企業的，但鑑於利率上漲了這麼多，每個人都堅持了下來。您的客戶告訴您什麼，或者您看到什麼使他們能夠在利率上漲 500 個基點的情況下保持非常健康的狀態？

Yes. I think I'd point to a couple of things, Gerard. One is, remember, we focus on the large multinational largely investment-grade quality names. And so that's one important factor when you think about our ICG and corporate exposure there. The second thing I'd point out is we have to remember that many of these companies had and still have very strong balance sheets and that they've managed that through the COVID and pandemic situation and that has positioned them well.

是的。杰拉德，我想我要指出幾件事。一是，請記住，我們專注於大型跨國公司，主要是投資級優質公司。因此，當您考慮我們的 ICG 和企業在那裡的風險時，這是一個重要因素。我要指出的第二件事是，我們必須記住，這些公司中的許多公司曾經並且仍然擁有非常強大的資產負債表，並且他們在新冠疫情和大流行情況下成功地做到了這一點，這使他們處於有利地位。

I think the third thing is that and you've heard us mention how we're proactively managing the prospect of a recession. And I think when I talk to other CFOs, I know that when Jane talks to other CEOs, they too are looking at their expense line. They too are looking at the efficiency of their organizations and opportunity to increase that efficiency in light of a potential slowdown or recessionary environment. And then the final point is, I think a lot of firms have been -- that were proactive in the low rate environment, ensuring up that balance sheet strength.

我認為第三件事是，你已經聽到我們提到我們如何積極應對經濟衰退的前景。我想，當我與其他首席財務官交談時，我知道當簡與其他首席執行官交談時，他們也在考慮自己的費用線。他們也在考慮其組織的效率以及在潛在的經濟放緩或衰退環境下提高效率的機會。最後一點是，我認為很多公司在低利率環境下都採取了積極主動的態度，確保了資產負債表的實力。

Now with that said, you've heard us also mention the prospect of a rebound in capital market activities, and that has to happen at some point. But sticking to your point around credit, I really think it's those factors that you see play through in not only our very low NAL, but also our very low credit losses, credit cost that you've seen in our business.

話雖如此，你也聽到我們提到了資本市場活動反彈的前景，而這必須在某個時候發生。但堅持你關於信用的觀點，我真的認為這些因素不僅在我們非常低的 NAL 中發揮作用，而且在我們的業務中看到的我們非常低的信用損失和信用成本中也發揮了作用。

And then as a follow-up, when you think about what we've seen with the Fed's tightening over the last 12 months, banks like your own have positioned the balance sheet accordingly and I know the BancAnalysts Association of Boston, Michael did a good job explaining how you guys manage the balance sheet. And how -- when you look at it going forward, do you think changes are coming because the Fed if they end the Fed funds rate increase as we get to a terminal rate, how are you guys positioned the balance sheet, do you think going forward?

然後作為後續行動，當你想想我們在過去 12 個月裡看到的美聯儲緊縮政策時，像你自己這樣的銀行已經相應地調整了資產負債表，我知道波士頓銀行分析師協會，邁克爾做得很好工作解釋你們如何管理資產負債表。當你展望未來時，你是否認為變化即將到來，因為如果美聯儲在我們達到最終利率時結束聯邦基金利率的上調，你們將如何定位資產負債表，你認為會發生什麼？向前？

Look, we're constantly actively managing the balance sheet in light of not only our client needs, but also how we see the broader macro environment evolving and changing. And as you know, and I know you've seen and we've talked about before, we share in our Qs, our view on our estimate for interest rate exposure and what happens with 100 basis points swing in rates in one direction or another across the curve across currencies. You've seen that shift over the last number of quarters to the last quarter where that estimate for IRE was about $1.7 billion or so, but heavily skewed towards non-U.S. dollar rates and currencies.

看，我們不僅根據客戶的需求，而且根據我們如何看待更廣泛的宏觀環境的發展和變化，不斷積極地管理資產負債表。正如你所知，我知道你已經看到並且我們之前討論過，我們分享我們的問題，我們對利率風險估計的看法，以及利率朝一個方向或另一個方向波動 100 個基點會發生什麼跨越貨幣曲線。您已經看到了過去幾個季度的轉變，上個季度 IRE 的估計約為 17 億美元左右，但嚴重偏向非美元利率和貨幣。

And I think as we think about the view on how rates will evolve, you'll see a continued shift there. I think that when we look to print this quarter, that number will probably come down a bit in terms of interest rate exposure and skew even more towards non-U.S. dollar currencies in light of where rates are in those markets and the U.S. dollar will likely be somewhat neutral in light of what that curve currently looks like. But again, something we actively manage, first with an eye towards what client demand and needs are likely to be for use of our liquidity but also with a view for how the macro environment might evolve and what we're hearing from central banks around the world.

我認為，當我們思考利率將如何演變的觀點時，您會看到那裡的持續轉變。我認為，當我們考慮本季度的印刷時，這個數字在利率風險方面可能會略有下降，並且根據這些市場的利率和美元可能會更加偏向非美元貨幣鑑於該曲線目前的樣子，保持某種中性。但同樣，我們積極管理的事情，首先著眼於客戶使用我們的流動性的需求和需求，同時也著眼於宏觀環境可能如何演變以及我們從各國央行那裡聽到的消息。世界。

And our next question comes from Vivek Juneja with JPMorgan. I'm sorry, we have Mike Mayo with Wells Fargo.

我們的下一個問題來自摩根大通的 Vivek Juneja。抱歉，我們有富國銀行的邁克·梅奧。

I meant to follow up earlier on the bending of the cost curve, but if you were to put different initiatives in terms of how far along you are maybe like your exits might be in the eighth inning and your transformation might be in the sixth inning and you remediates in the fifth inning and the simplification in the first inning or second inning. Are those numbers correct? How would you put those numbers? And in terms of bending the cost curve, where are you further along and where are you just getting started?

我本來打算早些時候跟進成本曲線的彎曲，但如果你要根據你的進展程度採取不同的舉措，也許你的退出可能在第八局，你的轉變可能在第六局，你在第五局進行補救，在第一局或第二局進行簡化。這些數字正確嗎？你會如何輸入這些數字？在彎曲成本曲線方面，您在哪裡進一步前進以及在哪裡剛剛開始？

Well, Mike, I love you, but I'm not going to play that game. What I will say is that we clearly have work that we're doing as it relates to the exits, but we're making very good progress on that, not just on the closing of the exits but also on putting a dent in the stranded costs associated with those exits that we have closed.

好吧，邁克，我愛你，但我不會玩那個遊戲。我要說的是，我們顯然正在做與出口相關的工作，但我們在這方面取得了非常好的進展，不僅在關閉出口方面，而且在減少滯留人員方面與我們已關閉的退出相關的成本。

And so as Jane mentioned in her prepared remarks, by the time we get to the end of the year, ex Mexico, we would have made a considerable amount of progress on there, and that creates an opportunity to do more around the simplification of the organization and so that simplification is obviously in an earlier inning, call it, the exits in a later inning.

因此，正如簡在她準備好的發言中提到的那樣，到今年年底時，除墨西哥外，我們將在這方面取得相當大的進展，這創造了一個機會，可以圍繞簡化問題做更多的事情。組織，因此簡化顯然是在較早的一局中進行的，稱之為後一局的退出。

I think that the transformation, spend, investments and those things. Look, we are squarely into execution, as you've heard us mention before. And as I've mentioned, the expense base around that is going to continue to morph from spend that we've made around third-party consultants and that helped in the crafting of the plan towards technology, towards people that are critically involved in the execution of it and then a downward trajectory towards the benefits we get from that technology and reduced operational expense. And so it's a multiyear journey. We've talked about that. We've got a number of years to continue to execute against it. But what's important is we know what we have to do, both in how we're investing that money and as it relates to being disciplined about our cost structure and bending the curve. And again, that's what we're going to do.

我認為轉型、支出、投資等等。看，我們正在立即執行，正如您之前聽我們提到過的。正如我所提到的，圍繞這方面的支出基礎將繼續從我們圍繞第三方顧問進行的支出發生變化，這些支出有助於製定技術計劃，以及關鍵參與該項目的人員。執行它，然後我們從該技術中獲得的好處和減少的運營費用呈下降趨勢。所以這是一個多年的旅程。我們已經討論過了。我們還有很多年的時間來繼續反對它。但重要的是我們知道我們必須做什麼，包括我們如何投資這些錢，以及它與嚴格控制我們的成本結構和彎曲曲線有關。再說一次，這就是我們要做的。

And one more attempt, can you remind us how many people are working on the transformation remediation and how much that's costing you?

還有一次嘗試，您能否提醒我們有多少人正在致力於轉型修復以及您為此花費了多少費用？

Yes. I mean, again, we've got -- I think the number I shared was somewhere around 13,000 people or so that are broadly working on the efforts here. We haven't gotten into specific costs. You know it's in the total number. But what I would say again is that we're clear on what we've got to deliver and execute against and we're managing that cost very tightly. We're constantly looking at opportunities to deliver on those transformation deliverables more efficiently, leveraging more technology, leveraging AI in some instances. And so we're not just taking those execution plans as they were crafted and delivering against them. But we're looking for efficiencies and even the execution plans as they're constructed today. And that's important for us to keep doing.

是的。我的意思是，我們有 - 我認為我分享的人數約為 13,000 人左右，他們正在廣泛地致力於這裡的工作。我們還沒有討論具體成本。你知道它在總數中。但我要再說一遍的是，我們很清楚我們必須交付和執行什麼，並且我們正在非常嚴格地管理該成本。我們不斷尋找機會，利用更多技術，在某些情況下利用人工智能，更有效地實現這些轉型成果。因此，我們不只是按照制定的執行計劃進行實施。但我們正在尋找效率，甚至是今天構建的執行計劃。這對我們繼續這樣做很重要。

And our next question comes from Kenneth Usdin with Jefferies.

我們的下一個問題來自 Jefferies 的 Kenneth Usdin。

I know where this is going along here. Just a quick one, just, Mark, on the -- just wanted to get your sense on the sentiment around client activity in both the markets group and your -- what the pipelines are looking like in investment banking and the feel for that?

我知道這是怎麼回事。馬克，我想簡單介紹一下——只是想了解一下您對市場部門和您的客戶活動的看法——投資銀行業的渠道是什麼樣的以及對此的感覺？

Look, I'll jump in here. Corporates are pretty cautious. They've got another Fed hike in the offering tensions, China and the West, OPEC and all general sense of more limited growth. But I think clients have been trying to understand and get their arms around both the macro and the market outlook for a while. I think they now seem to accept the current environment is the new normal and are beginning to position themselves globally.

看，我要跳到這裡。企業相當謹慎。他們在供應緊張、中國和西方、歐佩克以及所有普遍認為增長更加有限的情況下再次加息。但我認為客戶一段時間以來一直在試圖了解並掌握宏觀和市場前景。我認為他們現在似乎接受當前環境是新常態，並開始在全球範圍內定位自己。

So globally, we're seeing less anxiety around funding as most large corps are biting the bullet and paying higher rates to take advantage of issuance will -- windows. Balance sheet is getting reinforced. We certainly don't see a large cap credit crisis on the horizon. And on the IP side, it remains -- the pipeline is robust. There's a lot of pent-up demand for M&A, but it's hard to predict when that pipeline will unlock. ECM had tangible momentum over Q1, and we're also seeing sponsor (inaudible) signs of improvement, but both of those are from a very, very low base.

因此，在全球範圍內，我們看到融資方面的焦慮有所減輕，因為大多數大型企業都在咬緊牙關，支付更高的利率來利用發行意願——窗口。資產負債表正在得到加強。我們當然不會看到大規模信貸危機即將出現。在 IP 方面，管道依然強大。併購需求有大量被壓抑的需求，但很難預測該管道何時會釋放。 ECM 在第一季度有明顯的勢頭，我們也看到贊助商（聽不清）有改善的跡象，但這兩個基礎都非常非常低。

And on the investor side, most of the investors stayed on the sidelines in Q2. The debt ceiling was a bigger topic than economic news was, and then it was a very low volume environment. We saw a bit of a pickup at the beginning of -- with the light bump in volatility in the last few days, but I wouldn't call that a trend yet.

而在投資者方面，大多數投資者在第二季度保持觀望。債務上限是一個比經濟新聞更大的話題，而且當時的交易量非常低。我們在年初看到了一些回升——過去幾天波動性略有上升，但我還不認為這是一種趨勢。

And our next question comes from Charles Peabody with Portales.

我們的下一個問題來自查爾斯·皮博迪和波塔萊斯。

A question about your markets related net interest income. And before I ask the question, I do appreciate that you run those businesses on a holistic basis and that NII is probably more of a residual outcome. But a couple of questions related to market-related NII. First is you had a pretty nice jump up in the second quarter versus the first quarter. And I just wanted to understand, is that largely related to seasonal dividend issues?

關於您的市場相關淨利息收入的問題。在我問這個問題之前，我確實很欣賞你們在整體基礎上經營這些業務，而 NII 可能更多的是一個殘餘結果。但有幾個問題與市場相關的 NII 相關。首先，與第一季度相比，你在第二季度取得了相當不錯的進步。我只是想了解，這很大程度上與季節性股息問題有關嗎？

And then secondly, you have a positive NII outcome, where a lot of your money centers gradually will have a negative NII outcome for markets and I was just wondering what the difference is? Is it the outsized FICC business relative to equities? Or is it the international? Or is it how you hedge? What's the difference on that? So those are the 2 questions.

其次，你有一個積極的NII結果，而你的很多貨幣中心逐漸會對市場產生消極的NII結果，我只是想知道有什麼區別？是 FICC 業務相對於股票而言規模過大嗎？還是國際的？或者這就是你對沖的方式？那有什麼區別呢？這就是兩個問題。

Thanks for the question, and thanks for the acknowledgment that we do manage our markets revenues in total. So I appreciate that. What I would say in terms of the markets NII is you've captured it right, which is the dynamic that's playing out between first quarter and second quarter is, in fact, a dividend season. And again, given the globality of our franchise, the dividend is not just a dividend in any one region, but dividend in multiple regions playing out over the course of the first and second quarter.

感謝您提出問題，也感謝您承認我們確實管理著我們的市場總收入。所以我很欣賞這一點。就市場 NII 而言，我想說的是，您已經正確理解了，第一季度和第二季度之間的動態實際上是股息季節。再說一次，考慮到我們特許經營的全球性，股息不僅僅是任何一個地區的股息，而是在第一和第二季度的多個地區的股息。

I can't speak to the peers at this particular stage. But what I would say is that you know that our book skews more so than peers to corporates, and that's important. And we obviously have a very, very strong FICC business more broadly as well. So dividend season, major driver here in that increase.

在這個特定階段我無法與同行交談。但我想說的是，你知道我們的書比同行更偏向企業，這一點很重要。顯然，我們在更廣泛的範圍內也擁有非常非常強大的 FICC 業務。因此，股息季節是這一增長的主要推動力。

Okay. And just as a follow-up, is there any sort of directional guidance you can give on markets related to NII? I mean does it mean to the extent second quarter was bolstered by dividend, it comes down in the third quarter, but then does it go back up in the fourth quarter? So would the second half be kind of equivalent to the first half?

好的。作為後續，您可以對 NII 相關市場提供任何方向性指導嗎？我的意思是，這是否意味著在第二季度受到股息支撐的情況下，第三季度會下降，但第四季度會回升嗎？那麼下半場是否與上半場相當呢？

Charles, I really appreciate the attempt there. But I'm not going to give any further guidance on the breakout of the NII, I will reiterate the ex markets NII increase, by the way, to plus [46%] but thanks for the question. I appreciate that.

查爾斯，我真的很欣賞那裡的嘗試。但我不會對 NII 的突破提供任何進一步的指導，順便說一句，我會重申前市場 NII 的增長，以增加 [46%]，但謝謝你的提問。我很感激。

And our next question comes from Vivek Juneja with JPMorgan.

我們的下一個問題來自摩根大通的 Vivek Juneja。

Couple of questions. Number one, so capital, Jane and Mark, going back to that, should we expect that given what you've mentioned, given everything going on in the regulatory environment, ratio you're at currently, it should grow in anticipation of what may come or likely to come with all the regulatory stuff? Or are you going to try and keep that closer to the 13.3%?

有幾個問題。第一，所以資本，簡和馬克，回到這一點，我們是否應該期望，考慮到您所提到的情況，考慮到監管環境中發生的一切，您目前所處的比率，它應該會隨著對可能發生的情況的預期而增長會或可能會帶來所有監管內容嗎？或者您會嘗試將其保持在接近 13.3% 的水平嗎？

I think we're going to see exactly what the framework is that comes out and then the implementation time frame for it and then look at making adjustments to plan, also hoping that the comment period is taken seriously and the different considerations I talked about earlier are taken into effect. Then we'll work through whatever adjustments we make, pricing, capital reallocation, et cetera, the playbook that you would expect the same one that we've done with SACR and we've done with a number of other pieces. And we would also hope to see our SCB in a different place for the same reasons we talked about earlier, Vivek, because there's a lot of volatility in that SCB dependent on the scenario that comes out every year. And I would say, given the shifts we're making in the business model, we'd expect to see that one come down.

我認為我們將確切地看到框架是什麼，然後是它的實施時間框架，然後考慮對計劃進行調整，也希望認真對待徵求意見期以及我之前談到的不同考慮因素均已生效。然後我們將完成我們所做的任何調整、定價、資本重新分配等等，您會期望我們對 SACR 所做的以及我們對許多其他部分所做的操作相同。我們還希望看到我們的 SCB 處於不同的位置，原因與我們之前談到的相同，Vivek，因為 SCB 存在很大的波動性，具體取決於每年出現的情況。我想說，考慮到我們正在對商業模式進行轉變，我們預計會看到這一轉變。

The only thing I'd add is the -- again, the CET1 ratio of the 13.3% as of October 1 would be a 12.3% rig required level and 100 basis points of the management buffer. So that would be what we'd be held to as of October 1. As Jane mentioned, the NPR as it comes out, we'll take a look at that and see if there are implications on the CET1 stack, but more likely implications on the risk-weighted assets, right? And what's really important there aside from the very important points Jane made in terms of considering broader factors is the timing of the implementation of whatever that final rule includes and obviously, the more timing for implementation, the more of an ability it gets for the industry to think about how to absorb the implications there.

我唯一要補充的是，截至 10 月 1 日，CET1 比率為 13.3%，這將是 12.3% 的鑽機需求水平和 100 個基點的管理緩衝。這就是我們從 10 月 1 日起所堅持的。正如 Jane 提到的，NPR 發布後，我們將對其進行研究，看看是否對 CET1 堆棧有影響，但更可能的影響是風險加權資產，對嗎？除了簡在考慮更廣泛因素方面提出的非常重要的觀點之外，真正重要的是最終規則所包括的任何內容的實施時機，顯然，實施時機越多，該行業獲得的能力就越大思考如何吸收那裡的影響。

But I'm presuming you want to go sooner rather than later because the market is going to expect that, rather than take a full 3 years or whatever the Fed might give you.

但我假設你希望早點離開而不是晚點離開，因為市場會預期這一點，而不是花整整三年或美聯儲可能給你的任何時間。

You know what, I'm really interested at this point in seeing the proposal, and then we'll have a chance to kind of to really react as an industry and as a firm.

你知道嗎，我現在真的很感興趣看到這個提案，然後我們將有機會作為一個行業和一家公司做出真正的反應。

Completely unrelated, if I may. Noninterest-bearing deposits, what are you seeing given you're very heavily corporate driven. When I look at your point-to-point because you don't give a full average balance sheet, it's only interest-bearing related. But the noninterest-bearing is only available on a appeared end. If I look at that, there was a big drop in the U.S. this quarter. Anything unusual? Is that accelerating? What are you seeing amongst your clients, people still waking up? And what have you factored into your NII guidance for that?

如果可以的話，完全無關。無息存款，考慮到您很大程度上是企業驅動的，您會看到什麼。當我看你的點對點時，因為你沒有給出完整的平均資產負債表，它只是與利息相關。但無息僅在表面上可用。如果我看一下，本季度美國出現了大幅下降。有什麼不尋常的嗎？這是在加速嗎？你在你的客戶中看到了什麼，人們仍然在醒來？您在 NII 指導中考慮了哪些因素？

Well, again, I think the point I'd make here is that we continue to see clients shift from kind of noninterest-bearing deposits and into both interest-bearing and CDs and other higher-yielding products in light of the rate environment that we're in. And I would expect us to continue to see those types of shifts subject to how rates continue to evolve. And again, on the corporate side, we've seen in the U.S., clients have reached kind of those terminal -- that terminal level, terminal betas, I should say, outside of the U.S. rate hikes, I think, are still in the future, as Jane alluded to, and the terminal betas have not quite yet been reached. But in terms of the noninterest bearing, we are seeing that dynamic play out.

好吧，我想我在這裡要強調的一點是，鑑於我們的利率環境，我們繼續看到客戶從無息存款轉向有息存款和定期存款以及其他收益較高的產品。我預計我們將繼續看到這些類型的轉變取決於利率的持續變化。再說一遍，在企業方面，我們在美國看到，客戶已經達到了某種程度——終端水平，終端貝塔，我認為，在美國加息之外，我認為仍然處於這種狀態。正如簡所提到的，未來的階段還沒有達到最終的測試階段。但就非利息而言，我們正在看到這種動態的發揮。

Thank you. This does conclude Citi's Second Quarter 2023 Earnings Review Call. You may now disconnect at any time.

謝謝。花旗 2023 年第二季度收益審查電話會議到此結束。您現在可以隨時斷開連接。