花旗銀行 (C) 2024 Q2 法說會逐字稿

Hello, and welcome to Citi's Second Quarter 2024 earnings call. Today's call will be hosted by Jenn Landis, Head of Citi Investor Relations. We ask that you please hold all questions until the completion of the formal remarks at which time we would be given instructions for the question and answer session. Also, as a reminder, this conference is being recorded today. If you have any objections, please disconnect at this time. Jenn Landis, you may begin.

您好，歡迎參加花旗 2024 年第二季財報電話會議。今天的電話會議將由花旗投資者關係主管 Jenn Landis 主持。我們要求您保留所有問題，直到正式發言完成，屆時我們將收到有關問答環節的指示。另外，提醒一下，今天正在錄製這場會議。如果您有任何異議，請此時斷開連接。詹蘭迪斯，你可以開始了。

Thank you operator. Good morning, and thank you all for joining our second quarter 2024 earnings call. I am joined today by our Chief Executive Officer, Jane Fraser, and our Chief Financial Officer, Mark Mason. I'd like to remind you that today's presentation, which is available for download on our website, citigroup.com. They contain forward looking statements which are based on management's current expectations and are subject to uncertainty and changes in circumstances.

謝謝運營商。早安，感謝大家參加我們的 2024 年第二季財報電話會議。今天，我們的執行長簡·弗雷澤 (Jane Fraser) 和財務長馬克·梅森 (Mark Mason) 也加入了我的行列。我想提醒您，今天的簡報可以在我們的網站 citigroup.com 上下載。它們包含基於管理層當前預期的前瞻性陳述，並受到不確定性和情況變化的影響。

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. (audio in progress).

由於多種因素，包括我們的收益資料以及我們向 SEC 文件中描述的因素，實際結果可能與這些陳述有重大差異。 （音訊正在進行中）。

And with that, thank you, Jane.

謝謝你，簡。

Good morning to everyone. Before I discuss the results for the quarter, let me first address the regulatory action by the Federal Reserve and the Office of the Controller of the Currency, which were announced on Wednesday. These actions into the consent orders we entered into with both agencies in 2020, and those orders covered four primary areas risk management, data governance, controls, compliance. Addressing these areas is the primary goal of our transformation. Number one priority. It is a multiyear effort to modernize our infrastructure, UniFi disparate platforms and automate processes and controls. This week's actions focused primarily on data quality management. We've been public this year about the fact that we were behind in this particular area and that we had increased our investment a s a result.

各位早安。在討論本季的業績之前，讓我先談談聯準會和貨幣監理署週三宣布的監管行動。這些行動已納入我們在 2020 年與兩家機構簽訂的同意令中，這些命令涵蓋了風險管理、資料治理、控制和合規性四個主要領域。解決這些領域是我們轉型的首要目標。第一優先。我們經過多年努力才實現基礎設施、UniFi 不同平台的現代化以及流程和控制的自動化。本週的行動主要集中在數據品質管理。今年我們已經公開表示，我們在這一特定領域落後了，因此我們增加了投資。

The regulatory actions consisted of two civil money penalties and under the amended consent order with the OCC, a new process designed to ensure we're allocating sufficient resources to meet our remediation milestones , and that is called the resource (audio in progress) . Through the time. We are currently developing the plan for submission to the SEC.

監管行動包括兩項民事罰款，以及根據OCC 修訂後的同意令，這是一個新流程，旨在確保我們分配足夠的資源來實現我們的補救里程碑，這就是所謂的資源（正在進行中的音訊） 。透過時間。我們目前正在製定計劃以提交給 SEC。

Now by way of background, while the Federal Reserve is the primary regulator to Citigroup, our bank holding company OCC is a primary regulator for Citibank. NA. We call it CBNA., which is our largest banking vehicle with approximately 70% of our assets . [You mentioned] consent order with the SEC allows the N&A to continue paying to Citigroup at a minimum dividend necessary for debt service, preferred dividends and other nondiscretionary obligation.

現在作為背景，雖然聯準會是花旗集團的主要監管者，但我們的銀行控股公司 OCC 是花旗銀行的主要監管者。不適用。我們稱之為 CBNA，它是我們最大的銀行工具，約占我們資產的 70%。 [您提到]SEC 的同意令允許 N&A 繼續向花旗集團支付償債、優先股股息和其他非全權義務所需的最低股息。

While we're developing and seeking OCC consent for our results through [Theepan] dividend amount above that would require the OCC's non-objection. Now these dividends are into co-payment that I made from CB. and A. ultimately to the parent, Citigroup. They should not be confused with the common dividends. Citigroup pays to its shareholders. Indeed, there is no restriction on Citigroup's ability to pay common dividends to shareholders, nor is there a restriction to buying back shares.

雖然我們正在透過 [Theepan] 股息金額制定並尋求 OCC 同意我們的結果，但高於此金額需要 OCC 不反對。現在這些股息已轉入我從CB中支付的共同支付中。 A. 最終歸母公司花旗集團所有。不應將它們與普通股息混淆。花旗集團向其股東付款。事實上，花旗集團向股東支付普通股利的能力沒有受到限制，回購股票也沒有受到限制。

And let me be very clear, even with the investments needed for our transformation, Citigroup has more than sufficient resources to also invest in our businesses and make the planned return of capital to our shareholders. We will increase our dividend from $0.53 to $0.56 a share as we announced in late June, and we will resume modest buyback this quarter. While these actions were not entirely unexpected to us, it is no doubt disappointing for our investors and for our people. We completely understand that .

讓我非常明確的是，即使我們進行轉型所需的投資，花旗集團也擁有足夠的資源來投資我們的業務並向股東按計劃進行資本回報。正如我們在 6 月底宣布的那樣，我們將把股息從每股 0.53 美元增加到 0.56 美元，並且我們將在本季度恢復適度的回購。雖然這些行動並非完全出乎我們的意料，但無疑地讓我們的投資者和我們的員工感到失望。我們完全理解這一點。

At the same time, we're confident in our ability to get a specific areas where they need to be, as we have been able to do in other areas of the transformation. And we are pleased that it was acknowledged on Wednesday that we have made meaningful progress in executing our transformation and simplifying our firm . A multi-year undertakings such as this was never going to be linear, but I can assure you the investments we have been making as starting to come together to reduce risk, improve controls and deliver very tangible outcomes. The tech investments we have made are making a difference. We have reduced the time it takes to b[ook loans,] automated controls for our traders to reduce errors, move risk analytics to a cloud-based infrastructure and to increase the resiliency of our platforms to reduce downtime, []

同時，我們對在特定領域實現所需目標的能力充滿信心，就像我們在其他轉型領域所做的那樣。我們很高興週三得到承認，我們在執行轉型和簡化公司方面取得了有意義的進展。像這樣的多年任務永遠不會是線性的，但我可以向你們保證，我們一直在進行的投資開始匯集在一起，以降低風險、改進控制並帶來非常切實的成果。我們所做的技術投資正在發揮作用。我們減少了預訂貸款所需的時間，為交易者提供自動化控制以減少錯誤，將風險分析轉移到基於雲端的基礎設施，並提高我們平台的彈性以減少停機時間，[]

The changes to our organization and our culture and making a difference. We have eliminated managerial contracts unless whilst empowering our leaders, we introduced new tools to better manage human capital needs. Our focus on culture has increased accountability and attracted great new talent such as base [Raghavan, Tim Ryan and Andy sake], you have my and the entire management team's commitment that we will address any or the consent order where we are behind, by putting the necessary resources and focus behind it. We will get this work where it needs to be as we have with the execution of our strategy and the simplification of our organization.

我們的組織和文化發生了變化，並產生了影響。我們已經取消了管理合同，除非在賦予領導者權力的同時，引入新工具來更好地管理人力資本需求。我們對文化的關注增強了責任感，並吸引了優秀的新人才，例如基礎[Raghavan、Tim Ryan 和 Andy]，我和整個管理團隊承諾，我們將解決我們落後的任何或同意令，方法是：其背後的必要資源和重點。我們將在需要的地方完成這項工作，就像我們執行策略和簡化組織一樣。

Now turning to what was another good quarter. Our results show the relentless focus we have in executing our strategy as we continue to drive towards our medium-term return target. We reported net income of $3.2 billion with an earnings per share of $1.52 and an ROTCE of 7.2%. Revenues were up 4% overall as well as up in each of our five core businesses for all, but one had positive operating leverage.

現在轉向另一個好的季度。我們的結果表明，在我們繼續努力實現中期回報目標的過程中，我們對執行策略的不懈關注。我們公佈的淨利潤為 32 億美元，每股收益為 1.52 美元，ROTCE 為 7.2%。整體收入成長了 4%，五項核心業務的收入均有所成長，其中一項核心業務擁有積極的營運槓桿。

Expenses were down 2% year over year. The steps we're taking to simplify our organization right sized businesses such as market and well and reduced stranded costs are beginning to take hold even as we increase investment in our transformation. Over the medium term, we expect the simplification and stranded cost actions to drive $2 billion to $2.5 billion in annual run rate savings services grew 3%, driven by solid fee growth, which we have prioritized.

費用較去年同期下降 2%。儘管我們增加了轉型投資，但我們為簡化組織、適當規模的業務（例如市場和油井）以及降低擱淺成本而採取的措施也開始發揮作用。從中期來看，我們預計，在我們優先考慮的穩定費用成長的推動下，簡化和擱置成本行動將推動 20 億至 25 億美元的年度營運費節省服務成長 3%。

CPS. saw increased activity in cross-border payments and in commercial card. Security Services was up 10% with new client onboarding steepening with existing clients and markets valuations, helping increase our assets under custody by a preliminary 9%. At our recent services Investor Day, we very much enjoyed the opportunity to talk to you in depth. But how we're going to continue to grow is high returning business. And we're very pleased that people are starting to recognize why we describe it as our crown jewel.

CPS。跨國支付和商業卡活動增加。隨著新客戶的加入、現有客戶和市場估值的增加，安全服務成長了 10%，幫助我們託管的資產初步增加了 9%。在我們最近的服務投資者日上，我們非常高興有機會與您深入交談。但我們將如何繼續成長是高回報業務。我們很高興人們開始認識到為什麼我們稱之為皇冠上的寶石。

Overall market had a strong finish to the quarter, leading to better performance than we'd anticipated. Fixed income was slightly down year on year due to lower [FX and rates.] So we had good issuing an area which generates attractive returns. Equities was up 37%, (audio in progress ) driven by strong performance in derivatives, which includes the gain on the Visa (audio in progress ). (audio in progress ) The exchange offer.

本季整體市場表現強勁，表現優於我們的預期。由於[外匯和利率]下降，固定收益比去年同期略有下降。受衍生性商品強勁表現的推動，股票上漲 37%（音訊進行中），其中包括 Visa 的收益（音訊進行中）。 （音頻進行中）交換要約。

Banking was up 38% as the wallet rebound gain some momentum and we again grew share. Our clients continue to access debt capital markets with investment grade issuance near record levels. Equity issuance increased, particularly in convertibles as companies wait for a fuller opening of the IPO window. Investment banking fees were up 63% versus the prior year. And we've seen some healthy volumes associated with the now year over year to date, particularly in natural resources and technology, combined with a strong pipeline advisory activity looks promising as we think about the rest of the year and into next year. Wealth is starting to improve. Growth in client investment assets drove stronger investment revenue, especially in Citigold and was up a preliminary 15%. Our focus on rationalizing expense base is also starting to pay off with expenses down 4%. Andy and his team continue to attract top talent from the industry as a focus on our investment business and on enhancing the client experience. US Personal Banking revenue growth of 6% with all three businesses, again contributing to the top line, []

由於錢包反彈獲得一些動力，銀行業上漲了 38%，我們的份額再次成長。我們的客戶繼續進入債務資本市場，投資級發行接近創紀錄水平。隨著企業等待 IPO 窗口的全面開放，股票發行量增加，尤其是可轉換債券。投資銀行費用較上年增加 63%。到目前為止，我們已經看到了與現在逐年相關的一些健康交易量，特別是在自然資源和技術方面，加上強大的管道諮詢活動，當我們考慮今年剩餘時間和明年時，看起來很有希望。財富開始改善。客戶投資資產的成長推動了投資收入的成長，尤其是 Citigold 的投資收入，初步成長了 15%。我們對費用基礎合理化的關注也開始得到回報，費用下降了 4%。安迪和他的團隊繼續吸引行業頂尖人才，專注於我們的投資業務和增強客戶體驗。美國個人銀行業務所有三項業務的收入均成長 6%，再次為營收做出貢獻，[]

With good revolving balance and growth in both branded cards and retail services. And we continue to see differentiation in the credit segment with the lower income customers seeing pressure . Retail banking benefited from higher mortgage loans and improved deposit spreads while delivering strong referrals to wealth. Overall, while we saw operating margin expansion, our poor returns were pressured by the combination of credit seasonality and the normalization of certain vintages. We certainly expect to USBB.s returns to improve from here. The recent stress test again showcase the strength of our balance sheet. Our CET1 ratio now stands at 13.6%, and we expect our regulatory capital requirement to decreased to 12.1% as of October 1 given the reduction of our stress capital buffer,

品牌卡和零售服務具有良好的循環平衡和成長。我們持續看到信貸領域的分化，低收入客戶面臨壓力。零售銀行業務受益於抵押貸款增加和存款利差改善，同時提供了強勁的財富推薦。總體而言，雖然我們看到營業利潤率擴張，但由於信貸季節性和某些年份的正常化，我們的回報率不佳。我們當然期望 USBB.s 的回報從現在開始有所改善。最近的壓力測試再次展示了我們資產負債表的實力。我們的 CET1 比率目前為 13.6%，鑑於我們的壓力資本緩衝減少，我們預計截至 10 月 1 日，我們的監管資本要求將降至 12.1%，

Our tangible book value per share grew to $87 and $0.53. During the quarter, we returned $1 billion in capital to our common shareholders, and we are increasing our dividend by 6%. We expect to buy back $1 billion in common shares this quarter, and we will continue to assess the level of buybacks on a quarterly basis, particularly given the on certainty around the [Basel] three and game. Looking at the macro environment as we enter the second half of the year, US is still the world's most structurally sound economy. After breaking progress, inflation now appears back on a downward trajectory. Services spending has remained on an upward trend, although there are clear signs of softening labor market and the tightening of the consumer budget. And of course, you might have heard there isn't election in November .

我們的每股有形帳面價值增至 87 美元和 0.53 美元。本季度，我們向普通股股東返還了 10 億美元資本，並將股利增加了 6%。我們預計本季將回購 10 億美元的普通股，並且我們將繼續按季度評估回購水平，特別是考慮到[巴塞爾]三和遊戲的確定性。從進入下半年的宏觀環境來看，美國仍然是全球結構最健全的經濟體。在突破性進展之後，通膨現在似乎又回到了下行軌道。儘管有明顯跡象顯示勞動力市場疲軟和消費者預算緊縮，但服務支出仍保持上升趨勢。當然，您可能聽說 11 月沒有選舉。

In Europe, while rate cuts have become. The region's lack of competitiveness continues to be a drag on growth. In Asia, China is growing moderately, albeit with government stimulus. And that pivot to high tech manufacturing is being challenged by tariffs on EBs and semiconductors. Despite this uncertainty, as you saw at our services Investor Day, when we went through our performance over the last two years, our business model can produce good results in a wide variety of macro environment. And there is plenty of upside for us across our five businesses.

在歐洲，降息已成定局。該地區缺乏競爭力持續拖累經濟成長。在亞洲，儘管有政府刺激措施，但中國正在溫和成長。而向高科技製造業的轉型正受到電子產品和半導體關稅的挑戰。儘管存在這種不確定性，正如您在我們的服務投資者日中看到的那樣，當我們回顧過去兩年的業績時，我們的商業模式可以在各種宏觀環境中產生良好的結果。我們的五項業務都有很大的上升空間。

We have made an incredible amount of progress in simplification, both strategically and organizationally. We've completed most of the exit of our international consumer markets. We streamlined our organization to capitalize agility and faster decision making. We are Modernising using our infrastructure to improve our client service, and we are automating processes to strengthen controls. We are on a deliberate path, we will continue to execute our transformation and our strategy that we can meet our medium-term target. And then continue to further improve our returns over time.

我們在策略和組織上的簡化方面取得了令人難以置信的進展。我們已經完成了國際消費市場的大部分退出。我們精簡了我們的組織，以充分利用敏捷性和更快的決策速度。我們正在利用我們的基礎設施進行現代化改造，以改善我們的客戶服務，並且我們正在自動化流程以加強控制。我們正走在一條深思熟慮的道路上，我們將繼續執行我們的轉型和策略，以實現我們的中期目標。然後隨著時間的推移繼續進一步提高我們的回報。

With that, let me turn it over to Mark and then we will be delighted as always to take your questions.

現在，讓我將其轉交給馬克，然後我們將一如既往地很高興回答您的問題。

Thanks, Jane, and good morning, everyone. And we'll start with(audio in progress) the firm-wide financial results for the three-month Euribor refrigerated otherwise emerge in a little more pharma business. On Slide 6, we show financial results for the paper. For the quarter. We reported net income of approximately $3.2 billion, EPS of $1 52 million or 57.2% or $20.1 billion of revenue. Total revenues were up 4%, driven by growth across all businesses as well as an approximate $400 million gain related to the Visa the exchange offer. A significant portion of this gain is reflected in equity markets with the remainder, reflecting all other expenses were $13.4 billion, down 2% and 6% on sequential basis. The combination of revenue growth and expense decline drove positive operating leverage for the firm and the majority of our businesses. Cost of credit was $2.5 billion, primarily driven by higher card net credit losses, which were partially offset by a CR releases in all businesses except USPP where we built for loan growth.

謝謝，簡，大家早安。我們將從（音頻正在進行中）公司範圍內三個月的歐洲銀行同業拆借利率（Euribor）的財務業績開始，否則會出現在更多的製藥業務中。在投影片 6 上，我們展示了論文的財務結果。對於本季。我們公佈的淨利潤約為 32 億美元，每股收益為 1.52 億美元，佔營收的 57.2%，即 201 億美元。受所有業務成長以及與 Visa 交換要約相關的約 4 億美元收益的推動，總收入增長了 4%。這一收益的很大一部分反映在股票市場，其餘部分反映所有其他費用為 134 億美元，環比下降 2% 和 6%。收入成長和費用下降相結合，為公司和我們的大部分業務帶來了積極的營運槓桿。信貸成本為 25 億美元，主要是由於銀行卡淨信貸損失增加，而除我們為貸款成長而建立的 USPP 之外，所有業務的 CR 釋放部分抵消了這一損失。

At the end of the quarter, we had nearly $22 billion in total reserves for the reserved funded loan ratio of approximate the 2.7%. On slide 7, we show the expense trend over the past five quarters. This quarter, we reported expenses of $13.4 billion, down 2% and 6% sequentially, which includes the $136 million civil money penalties imposed by the Fed and OCC earlier this week. The decrease in expenses was primarily driven by savings associated with our organizational simplification, stranded cost reduction and lower repositioning costs, []

截至本季末，我們的準備金總額接近 220 億美元，準備金貸款比率約為 2.7%。在投影片 7 上，我們顯示了過去五個季度的費用趨勢。本季度，我們報告的支出為 134 億美元，比上一季下降 2% 和 6%，其中包括聯準會和 OCC 本週稍早徵收的 1.36 億美元民事罰款。費用的減少主要是由於我們的組織簡化、擱淺成本減少和重新定位成本降低而節省的，[]

Partially offset by continued investment in transformation and the third and the OCC penalties . As we said over the past few months will come continued to invest in the transformation and technology to modernize our operations and risk and control infrastructure. We expect these investments to offset some of our sales and head count reduction going forward. However, based on what we know today, we will likely be at the higher end of the expense guidance range, excluding the FDIC special assessment and the civil money penalty.

部分被持續投資的轉型和第三次以及 OCC 的處罰所抵消。正如我們在過去幾個月中所說的那樣，我們將繼續投資於轉型和技術，以實現我們的營運以及風險和控制基礎設施的現代化。我們預計這些投資將抵消我們未來的部分銷售額和員工人數減少。然而，根據我們今天所知，我們可能會處於費用指導範圍的較高端，不包括 FDIC 特別評估和民事罰款。

With that said, we will, of course, continue to look for opportunities to absorb the civil money penalties, Before going into the balance sheet and the business results for the quarter. I'd like to ask, we'll give more color on the transformation and address with the Fed in OCC announced wins there. We made good progress in our transformation in certain areas over the last few years, and I want to highlight some of those areas before discussing the announcements.

話雖如此，在進入本季的資產負債表和業務表現之前，我們當然會繼續尋找機會吸收民事罰款。我想問一下，我們將在聯準會 OCC 宣布的勝利中對轉型和解決方案給予更多的關注。過去幾年，我們在某些​​領域的轉型取得了良好進展，在討論這些公告之前，我想強調其中一些領域。

First wholesale credit loan operations, where we implemented a consistent and operating model and consolidated multiple system with enhanced technology . This is not only reduce risks were enhanced operating efficiency and the client experience. We've also made improvements in risk and compliance as we enhanced our risk assessment and technology capabilities to increase automation for monitoring .

首次進行批發信用貸款業務，我們實施了一致的營運模式，並透過增強的技術整合了多個系統。這不僅降低了風險，還增強了營運效率和客戶體驗。隨著我們增強風險評估和技術能力以提高監控自動化程度，我們也在風險和合規性方面做出了改進。

And in data. While there's a lot more to do who stood up a data governance process and streamline our data architecture for ultimately facilitate straight through process. Overall, we've improved risk management and consolidated and upgraded systems and platforms to improve our resiliency. These efforts represent meaningful example of how we're making progress against our transformation milestones. That said, we have fallen short and data quality management, particularly related to regulatory reporting, which we've acknowledged publicly since the beginning of the year.

並在數據中。儘管還有很多工作要做，但誰要建立資料治理流程並簡化我們的資料架構，以最終促進直通式流程。整體而言，我們改善了風險管理，整合和升級了系統和平台，以提高我們的彈性。這些努力是我們如何在轉型里程碑方面取得進展的有意義的例子。也就是說，我們在數據品質管理方面存在不足，特別是在監管報告方面，我們自今年年初以來就公開承認了這一點。

As such, we've begun to put additional investments in resources in place. So not only address data quality management related to regulatory reporting and data governance were also stress testing capabilities, including [] and resolution recovered. We also reprioritize our efforts to ensure we're focused on data that impact these reports. f irst.

因此，我們已經開始對資源進行額外投資。因此不僅解決與監管報告和資料治理相關的資料品質管理能力，還包括[壓力測試]和解析度復原。我們也重新調整工作的優先順序，以確保我們專注於影響這些報告的數據。第一的。

We take this feedback from our regulators very seriously, and we're committed to allocating all the resources necessary to meet your expectations.

我們非常重視監管機構的回饋，並致力於分配所有必要的資源來滿足您的期望。

Now turning back to the quarterly results, slide 9, we show net interest income deposits and loans were off peak to sequential variance. In the second quarter. Net interest income was roughly flat, excluding Markets net interest income was down 3%, largely driven by the impact of foreign exchange translation, seasonally lower revolving (audio in progress) card back currencies and lower interest rates in Argentina, partially offset by higher deposit spreads in well. Average loans were roughly flat as growth in cards in Mexico, consumer was largely offset by slight declines across business.

現在回到季度業績，投影片 9，我們顯示存款和貸款的淨利息收入偏離了峰值，與環比差異相比。在第二季。淨利息收入大致持平，不包括市場淨利息收入下降了 3%，這主要是由於外匯換算、循環（音頻進行中）卡背貨幣季節性下降以及阿根廷利率較低的影響，部分被存款增加所抵消傳播得很好。由於墨西哥信用卡業務的成長，平均貸款大致持平，消費者業務的小幅下滑在很大程度上抵消了這一增長。

And average deposits decreased by 1%, largely driven by seasonal outflows and transfers to investments in wealth as well as non-operational outflows in TTS.

平均存款下降 1%，主要是由於季節性資金外流和財富投資轉移以及 TTS 的非經營性資金外流。

Here. On Slide 10, we show key consumer and corporate credit metrics, which reflect our disciplined risk appetite framework .Across our card portfolios a pproximately 86% of our card loans to consumers with fiber scores of 660 or higher. And while we continue to see an overall resilient US consumer, we also continue to see a divergence in performance and behavior across FICO and income[] . When we look across our consumer clients, only the highest income quartile has more savings than they did at the beginning of 2019. And it is the over 745 days for customers that are driving the spend growth and maintaining high payment rates. Motorcycle brand customers are seeing sharp drops in payment rates and borrowing more as they are more acutely impacted by high inflation and interest rates.

這裡。在投影片10 中，我們展示了關鍵的消費者和企業信用指標，這些指標反映了我們嚴格的風險偏好框架。高的消費者。雖然我們繼續看到美國消費者總體上具有彈性，但我們也繼續看到 FICO 和收入之間的表現和行為存在差異。當我們審視我們的消費者客戶時，只有最高收入四分之一的人比 2019 年初有更多的儲蓄。摩托車品牌客戶的付款率急劇下降，借貸增加，因為他們受到高通膨和利率的影響更加嚴重。

That said, as we will discuss later, we're seeing signs of stabilization in delinquency performance across our cards portfolio, and we've taken this all into account in our reserving. And we remain well reserved with a reserve for funded loan ratio of 8.1% for our [track record for failure,]

也就是說，正如我們稍後將討論的那樣，我們看到我們的信用卡組合的拖欠表現穩定的跡象，並且我們在儲備中考慮了這一切。我們仍然為我們的[失敗記錄]保留了8.1%的融資貸款準備金

Our corporate portfolio is largely investment grade at approximately 82% as of the second quarter, and we saw a nearly $500 million sequential decrease in corporate non-accrual loans, largely driven by upgrades and repayments. Additionally, this quarter, we saw an improvement in our macro assumptions driven by our HPI oil prices and equity market valuations. And our credit loss reserves continue to incorporate a scenario weighted average unemployment rate of nearly 5% and the downside unemployment rate of nearly 7%.

截至第二季度，我們的企業投資組合主要為投資級別，約為 82%，我們看到企業非應計貸款環比減少了近 5 億美元，這主要是由於升級和還款所致。此外，本季度，在 HPI 油價和股市估值的推動下，我們的宏觀假設有所改善。我們的信用損失準備金繼續納入近5%的情境加權平均失業率和近7%的下行失業率。

As such, we feel very comfortable with the nearly $22 billion of reserves that we have in the current environment. (audio in progress)

因此，我們對當前環境下擁有的近 220 億美元的儲備感到非常滿意。 （音訊進行中）

Turning to slide 11, heavy capital and liquidity. It is this strength that allows us to support clients through periods of uncertainty and volatility, our balance sheet reflection of our risk appetite strategy and diversified business model. Our $1.3 trillion deposit base is well diversified across regions, industries, customers and account types. The majority of our deposits are core products at $807 billion and spend 90 countries. And as you heard at the services Investor Day, most of these deposits are held in operating accounts that are crucial to our clients on their daily operations around the world, making them operational in nature and therefore, very stable.

轉向投影片 11，大量資本和流動性。正是這種優勢使我們能夠在不確定和波動的時期為客戶提供支持，我們的資產負債表反映了我們的風險偏好策略和多元化的業務模式。我們 1.3 兆美元的存款基礎在不同地區、產業、客戶和帳戶類型上實現了多元化。我們的存款大多是核心產品，金額達 8,070 億美元，支出遍及 90 個國家。正如您在投資者日服務中聽到的那樣，大部分存款都存放在營運帳戶中，這些帳戶對於我們的客戶在世界各地的日常運營至關重要，這使得它們本質上是可運營的，因此非常穩定。

The majority of our remaining deposits about quarter $4 billion are well diversified across the private bank, Citigold , retail and wealth and work offering as well as across regions and product. Our total deposits 68%, a US-dollar denominated with the remainder spanning over 60 currency. Our asset mix also reflects our strong risk appetite framework. Our $688 billion loan portfolio is well diversified across consumer and corporate loans and about one-third of our book balance sheet is held in cash and high quality short duration investments securities that contribute to our approximately $900 billion of available liquidity resources. We continue to feel very good about the strength of our balance sheet and the quality of our assets and liabilities, which position us to be a source of strength for the industry. And importantly for our clients.

我們剩餘的存款（約 25 億美元）大部分都在私人銀行、Citigold、零售、財富和工作服務以及跨地區和產品方面實現了多元化。我們總存款的68%以美元計價，其餘的則涵蓋60多種貨幣。我們的資產組合也反映了我們強大的風險偏好架構。我們6,880 億美元的貸款組合在消費者和企業貸款方面實現了多元化，我們的帳面資產負債表中約三分之一以現金和高品質短期投資證券持有，這些證券為我們提供了約9,000億美元的可用流動性資源。我們對資產負債表的實力以及資產和負債的品質仍然感到非常滿意，這使我們成為行業的力量來源。對於我們的客戶來說，這一點很重要。

On slide 12, we show a sequential walk to provide more detail on the drivers of our CET 1 ratio. This quarter. We ended the quarter with a preliminary 13.6% CET1 capital ratio approximately 130 basis points or approximately $15 billion, above our current regulatory capital requirement of 12.3%.

在投影片 12 中，我們展示了順序行走，以提供有關 CET 1 比率驅動因素的更多詳細資訊。本季。本季結束時，我們的 CET1 資本比率初步為 13.6%，約 130 個基點或約 150 億美元，高於我們目前 12.3% 的監管資本要求。

We expect our regulatory capital requirement to decreased to 12.1% as of October 1, which incorporates the reduction in our stress capital buffer from 4.3% to the indicative SC. being a 4.1%. We announced couple of weeks ago, we were pleased to see the improvement in our defense results and the corresponding reduction in our SCB. That said, even with the reduction of capital requirement does not yet fully reflect our simplification efforts, the benefits of our transformation or the full execution of our strategy, all of which we expect to reduce our capital requirements over time.

我們預計，截至 10 月 1 日，監理資本要求將降至 12.1%，其中壓力資本緩衝從 4.3% 降至指示性 SC。為 4.1%。幾週前我們宣布，我們很高興看到我們的防守結果有所改善，並且 SCB 也相應減少。也就是說，即使資本要求的降低尚未完全反映我們的簡化努力、轉型的好處或我們策略的全面執行，所有這些我們預計隨著時間的推移會降低我們的資本要求。

And as a reminder, we announced an increase to our common dividend from $0.53 per share to $0.56 per share following the SCB results. And as Jane mentioned earlier, we plan on doing $1 billion of buybacks this quarter.

謹此提醒，在 SCB 結果公佈後，我們宣布將普通股股息從每股 0.53 美元增加至每股 0.56 美元。正如 Jane 之前提到的，我們計劃本季進行 10 億美元的回購。

So now turning to slide 13, before I get into the businesses. As a reminder, in the fourth quarter of last year, we implemented a revenue sharing arrangement within banking and between banking services and markets to reflect the benefit the businesses get from our relationship-based lending. The impact of revenue sharing is included in the all other line for each business in our financial supplement.

在我開始討論業務之前，現在轉向幻燈片 13。提醒一下，去年第四季度，我們在銀行內部以及銀行服務和市場之間實施了收入共享安排，以反映企業從我們基於關係的貸款中獲得的利益。收入分享的影響包含在我們的財務補充中每項業務的所有其他行中。

In Services, revenues were up 3% this quarter, reflecting continued underlying momentum across both CTS and Securities Services. Net interest income was down 1%, largely driven by lower earnings on our net investment in Argentina, partially offset by the benefit of higher US and non-US interest rates relative to the prior year period.

在服務領域，本季營收成長了 3%，反映出 CTS 和證券服務持續的潛在成長動能。淨利息收入下降 1%，主要是由於我們在阿根廷的淨投資收益下降，部分被美國和非美國利率相對於上年同期上升的好處所抵消。

Non-interest revenue increased 11%, driven by continued strength across underlying fee drivers as well as a smaller impact from currency devaluation in Argentina, []

由於基本費用驅動因素持續強勁以及阿根廷貨幣貶值影響較小，非利息收入增加了 11%，[]

The underlying growth in both businesses as a result of our continued investment in product innovation, client experience and platform modernization that we highlighted during our services Investor Day last month. Expenses increased 9%, largely driven by in Argentina related transaction tax expense, a legal settlement expense and continued investments in product innovation and technology.

這兩項業務的潛在成長得益於我們對產品創新、客戶體驗和平台現代化的持續投資，我們在上個月的服務投資者日上強調了這一點。費用增加了 9%，主要是由於阿根廷的相關交易稅費用、法律和解費用以及對產品創新和技術的持續投資。

Cost of credit was a benefit of $27 million, driven by an ACO release in the quarter. Average loans were up 3%, primarily driven by continued demand for export and agency finance, particularly in Asia, as well as working capital loans to corporate and commercial clients i n Latin America and Asia.

受本季 ACO 發布的推動，信貸成本效益為 2,700 萬美元。平均貸款成長 3%，主要是由於對出口和機構融資的持續需求（特別是在亞洲）以及對拉丁美洲和亞洲企業和商業客戶的營運資金貸款的推動。

Average deposits were down 1%, driven by non-operating deposit outflows. At the same time, we continue to see good at operating deposit inflows. Net income was approximately $1.5 billion and services continues to deliver a high ROTCE. coming in at 23.8% for the quarter.

由於非經營性存款流出，平均存款下降 1%。同時，我們繼續看到存款流入的運作良好。淨利潤約為 15 億美元，服務繼續提供高 ROTCE。本季成長率為 23.8%。

On slide 14, we show the results for markets for the second quarter. Markets revenues were up 6%. Fixed income revenues decreased 3%, driven rates and currencies, which were down 11% on the back of lower volatility and tighter spreads. (audio in progress) This was partially offset by strength in spread products in the Merrill Lynch and by continued loan growth and higher securitization underwriting fees. In addition to a benefit from the B2B exchange offer, we continue to see good underlying momentum in equity, primarily driven by equity derivatives, and we continue to make progress in prime with balances up approximately 18%.

在投影片 14 上，我們展示了第二季的市場結果。市場收入成長 6%。固定收益收入下降 3%，導致利率和貨幣下降 11%，原因是波動性降低和利差收緊。 （音頻進行中）這被美林利差產品的強勁以及持續的貸款增長和更高的證券化承銷費用所部分抵消。除了受益於 B2B 交換要約之外，我們繼續看到股票的良好潛在勢頭，主要是由股票衍生品推動的，並且我們繼續在 Prime 方面取得進展，餘額增長了約 18%。

Expenses decreased 1%, driven by productivity savings, partially offset by higher volume-related expenses. Foster credit was a benefit of $11 million as at ACR released more than offset net credit loss. Average loans increased 11%, largely driven by asset-backed lending and spread products. Average trading assets increased 12%, largely driven by higher demand for treasuries and mortgage-backed securities . Markets generated positive operating leverage and delivered net income of approximately $1.4 billion with an ROTCE. of 10.7%.

由於生產力節省，費用下降了 1%，但部分被銷售相關費用增加所抵消。截至 ACR 發布的 Foster 信貸效益為 1,100 萬美元，足以抵銷淨信貸損失。平均貸款成長 11%，主要由資產支援貸款和利差產品推動。平均交易資產成長 12%，主要是由於對國債和抵押貸款支持證券的需求增加。市場產生了正的營運槓桿，並透過 ROTCE 實現了約 14 億美元的淨利潤。 10.7%。

On slide 15, we show the results for banking. For the second quarter. Banking revenues increased 38%, driven by growth in investment banking and corporate lending. Investment banking revenues increased 60%, driven by strength across capital markets and advisory. Given favorable market conditions. CCM continued to benefit from strong issuance activity is mainly an investment grade as issuers continued to de-risk funding plans in advance of what could be a more volatile second half in the context of a number of important global elections as well as the macro environment .

在投影片 15 上，我們展示了銀行業的結果。對於第二季。在投資銀行和企業貸款成長的推動下，銀行收入成長了 38%。在資本市場和諮詢業務實力的推動下，投資銀行業務收入成長了 60%。鑑於有利的市場條件。 CCM 繼續受益於強勁的發行活動（主要是投資級別），因為在一些重要的全球選舉和宏觀環境的背景下，發行人繼續在下半年可能更加波動的情況之前降低融資計劃的風險。

In ECM, excluding China A-shares, we're seeing a pickup in IPO activity led by the US as well as continued convertible issuanc e as issuers take advantage of strong equity market performance and expectations for rates to be higher for longer. And in advisory, we're seeing revenues from the relatively low announced activity in 2023 coming to fruition as those transactions close.

在ECM（不包括中國A股）中，我們看到以美國為首的IPO活動有所回升，並且隨著發行人利用強勁的股市表現和對利率將長期走高的預期，可轉換債券發行持續進行。在諮詢方面，我們看到隨著這些交易的完成，2023 年宣布的相對較低活動的收入即將實現。

Year to date. And in the quarter, we gained share across ECM, DCM and advisory, particularly in technology where we've been investing. Corporate Lending revenues, excluding mark-to-market on loan hedges, increased (audio in progress) 7%, largely driven by higher revenue share. We generated positive operating leverage again this quarter as expenses decreased 10%, primarily driven by actions taken to rightsize the expense base.

今年迄今為止。在本季度，我們在 ECM、DCM 和諮詢領域獲得了份額，特別是在我們一直投資的技術領域。企業貸款收入（不包括按市值計價的貸款對沖）增長了 7%（音頻正在進行中），這主要是由於收入份額增加所致。本季我們再次產生了正的營運槓桿，費用下降了 10%，這主要是由於為調整費用基礎而採取的行動。

[Faster] credit was a benefit of $32 million, driven by an ACO release, reflecting an improvement in the macroeconomic outlook, partially offset by net credit loss. Average loans decreased 4% as we maintain strict discipline around returns combined with lower overall demand for credit, net income was $406 million, and our ROTCE. was 7.5% for the quarter.

在 ACO 發布的推動下，[更快]信貸帶來了 3,200 萬美元的收益，反映出宏觀經濟前景的改善，但部分被淨信貸損失所抵消。由於我們對回報保持嚴格的紀律，加上整體信貸需求下降，平均貸款下降了 4%，淨利潤為 4.06 億美元，我們的 ROTCE 也下降了。本季成長率為 7.5%。

On slide 16, we show the results for wealth. The second quarter wealth revenues increased 2%, driven by 13% increase in NIR. from higher investment fee revenues, partially offset by a 4% decrease in NII from higher mortgage funding costs. We continue to see good momentum in, non-interest revenue benefited from double digit client investment assets growth both in North America and internationally, driven by net new client investment assets as well as market valuation.

在投影片 16 上，我們展示了財富結果。在 NIR 成長 13% 的推動下，第二季財富收入成長了 2%。投資費收入增加，但抵押貸款融資成本增加導致的 NII 下降 4% 部分抵消了這一影響。我們繼續看到非利息收入的良好勢頭，受益於北美和國際客戶投資資產兩位數的成長，這得益於新客戶投資資產淨值和市場估值的推動。

Expenses were down 4%, driven by the initial benefit of expense reductions as we rightsize the workforce. It's an expense base. Foster credit was a benefit of $9 million as an ACR release more than offset net credit loss. Preliminary end-of-period client balances increased 9%, driven by higher client investment assets as well as higher deposits. Average loans were flat as we continue to optimize capital use. Average deposits increased 2%, largely (audio in progress) reflecting the transport relationships and associated deposits from USPB., partially offset by a show on field investment, our net new entire well generating leverage this quarter and delivered net income of $210 million with an ROTCE of 6.4% for the quarter.

費用下降了 4%，這得益於我們調整員工規模而帶來的費用削減的初步效益。這是一個支出基礎。 Foster 信貸帶來了 900 萬美元的收益，因為 ACR 的釋放足以抵消淨信貸損失。受客戶投資資產增加和存款增加的推動，期末客戶餘額初步成長 9%。隨著我們繼續優化資本使用，平均貸款持平。平均存款增加了2%，主要（音頻進行中）反映了USPB 的運輸關係和相關存款。淨利潤，本季的 ROTCE 為 6.4%。

On slide 17, we show the results for US Personal Banking. For the second quarter, US Personal Banking revenues increased 6%, driven by NII growth of 5% and lower partner payments. Branded Cards, revenues increased 8%, driven by interest earning balanced growth of 9% as payment rates continue to moderate, and we continue to see growth in spend volume up 3%, primarily driven by customers with FICO scores of seven 40 or higher retail services revenues increased 6%, primarily driven by lower payments from city to our partners due to higher net credit losses and interest earning balances grew 8%. Retail banking revenues increased 3%, driven by higher deposit spreads as well as mortgage and installment loan growth. USPB. also generated positive operating leverage this quarter with expenses down 2%, driven by lower technology and compensation costs, partially offset by higher volume related expenses. Cost of credit increased to $2.3 billion of one point and a strike deals this quarter.

在投影片 17 上，我們展示了美國個人銀行業務的成果。第二季度，受 NII 成長 5% 和合作夥伴付款減少的推動，美國個人銀行業務收入成長 6%。品牌卡收入成長 8%，主要是由於支付率持續放緩，利息收入平衡成長 9%，我們繼續看到支出量成長 3%，這主要是由 FICO 分數為 7 40 或更高的客戶推動的服務收入增加了6%，主要是由於淨信貸損失增加導致城市向合作夥伴支付的款項減少，利息收入餘額增加了8%。受存款利差上升以及抵押貸款和分期貸款成長的推動，零售銀行業務收入增加了 3%。美國郵政局。本季也產生了積極的營運槓桿，由於技術和薪酬成本下降，費用下降了 2%，但部分被銷售增加的相關費用所抵消。本季信貸成本上升至 23 億美元一個百分點，並且達成了罷工協議。

Faster card loan vintages that were originated over the last few years are all maturing. at the same time, These vintages were delayed in their maturation due to the unprecedented levels of government stimulus during the pandemic. Second, we continue to see seasonally higher NPLs in the second quarter. Third, certain pockets of customers continue to be impacted by persistent inflation and higher interest rates resulting in higher losses.

過去幾年興起的更快的信用卡貸款模式都已日趨成熟。同時，由於疫情期間政府採取了前所未有的刺激措施，這些年份的成熟期被推遲。其次，我們在第二季繼續看到不良貸款季節性上升。第三，某些客戶繼續受到持續通膨和高利率的影響，導致更大的損失。

However, across both portfolios, we are seeing signs of stabilization in delinquency performance, but we will continue to watch the impact of persistent inflation and high interest rates as the year progresses. Despite these factors, we still expect branded cards to be in the 3.5% to 4% NCLrange for the full year and retail services to be at the high end of the range of 5.75% to 6.25%. Average deposits decreased 18% as the transfer of relationship and the associated deposits to our wealth business more than offset the underlying growth.

然而，在這兩個投資組合中，我們看到拖欠表現穩定的跡象，但隨著時間的推移，我們將繼續關注持續通膨和高利率的影響。儘管存在這些因素，我們仍然預計全年品牌卡 NCL 成長率將處於 3.5% 至 4% 範圍內，零售服務將處於 5.75% 至 6.25% 範圍的高端。平均存款下降 18%，因為關係和相關存款向我們的財富業務的轉移超過了潛在的成長。

Net income was $121 billion, (audio in progress) our ROTCE. for the quarter was 1.9%. As we said before, for and efficient high return over the medium term.

我們的 ROTCE 淨利潤為 1,210 億美元（音訊正在進行中）。該季度的成長率為 1.9%。正如我們之前所說，為了中期的高效高回報。

On slide 18, we show results for all other on a managed basis, which includes corporate, other and legacy franchises and excludes divestiture related items. Revenues decreased 22%, primarily driven by the closed exit and wind down and higher funding costs, partially offset by growth in Mexico as well as the impact from the B2B exchange offer. And expenses decreased 7%, primarily driven by closed exit and wind down. Slide 19 shows our full year 2024 outlook and medium term guidance, both of which remain unchanged. We continue to remain laser-focused on executing on our transformation and enhancing the business's performance. And while we record as a lot more to do on transformation, we are pleased with the progress that we're making towards our 2024 and commited third-partythese target.

在投影片 18 上，我們顯示了所有其他託管項目的結果，其中包括公司、其他和遺留特許經營權，但不包括剝離相關項目。收入下降了 22%，主要是由於退出和逐步關閉以及融資成本上升造成的，但部分被墨西哥的成長以及 B2B 交換要約的影響所抵消。費用下降了 7%，主要是由於關閉退出和關閉所致。幻燈片 19 顯示了我們的 2024 年全年展望和中期指導，兩者均保持不變。我們繼續專注於執行轉型和提高業務績效。雖然我們在轉型方面還有很多工作要做，但我們對我們在實現 2024 年目標和承諾的第三方目標方面取得的進展感到高興。

Jane and I would be happy to take your questions.

簡和我很樂意回答您的問題。

(Operator Instructions)

（操作員說明）

Mike Mayo with Wells Fargo.

富國銀行的麥克·梅奧。

Hi. Could you elaborate more on the amended consent order? Jane, you said it was a disappointing to have gotten that week. It's almost four years into the consent order and a lot of it why hasn't been resolved and what time? And that's the last column and maybe a little bit more on the winter onto I mean, you have what, 12,000 people for. I have a problem billions dollars, but it's not enough people a lot of money. You need to look at it in a different way. Are you not talking the same line? We have John Dugan, Azure Lead Independent Director, OCC. And it seems like you guys report card, I guess you passed overall. They went out of the way to say some nice things that looks like you got the mine grades and in data and regulatory management. So your confidence going to be resolved, but it's already been for years and there hasn't been resolved. So what is it going to take from here? And how can you resolve the regulatory concerns while continuing are serving shareholders better? And then the wind column centered So nebulous as back office, where are you achieving? You mentioned some items, but you can put more meat on those bones. Thanks.

你好。能否詳細說明修改後的同意令？簡，你說那一週令人失望。同意令已經快四年了，但為什麼很多問題還沒解決，什麼時間解決？這是最後一篇專欄，也許還有更多關於冬天的內容，我的意思是，你有什麼，12,000 人。我有一個問題，數十億美元，但它還不夠人們很多錢。你需要以不同的方式看待它。你們說的不是同一條線嗎？我們有 OCC Azure 首席獨立董事 John Dugan。看起來你們的成績單，我猜你們總體通過了。他們特意說了一些好話，看起來你得到了礦山等級、數據和監管管理方面的資訊。所以你的信心會得到解決，但已經很多年了，還沒解決。那麼接下來會發生什麼事呢？如何在繼續更好地服務股東的同時解決監管問題？然後風柱居中 如此模糊的後台，你在哪裡實現？你提到了一些東西，但你可以在這些骨頭上放更多的肉。謝謝。

Yes thank you, Mike. That's a few different parts of that. So let's let's start by just taking a step back on our transformation is addressing decades of underinvestment in large part subsidies, infrastructure and in our risk and control environment. And when you unpack that, there's areas where we had an absence of in-force enterprise-wide standards and got and governance, we've had a siloed organization that's prevented scale, a culture where a lot of groups are allowed to solve problems in the same problem in different ways fragmented tech platforms, manual processes and controls and a weak first line of defense to fuse subject matter experts. So this is a massive body of work that goes well beyond the consent order. And this is not all city putting in Band-Aids come. This is City tackling the root issues head on. And it's a multiyear undertaking, as we've talked about, and you saw that statement by one of our regulators this week, we have made meaningful progress on our transformation to put excuse me and on our simplification.

是的，謝謝你，麥克。這是其中的幾個不同部分。因此，讓我們先退後一步，解決我們的轉型問題，解決幾十年來在大部分補貼、基礎設施以及風險和控制環境方面投資不足的問題。當你解開這個問題時，你會發現，在某些領域，我們缺乏有效的企業範圍標準、組織和治理，我們有一個阻礙規模化的孤立組織，一種允許許多團隊解決問題的文化。的問題以不同的方式出現，分散了技術平台、手動流程和控制，以及融合主題專家的第一道防線薄弱。因此，這是一項龐大的工作，遠遠超出了同意令的範圍。而這並不是所有城市都貼上創可貼而來的。這是曼城直面解決根本問題的方法。正如我們所討論的，這是一項多年的工作，您本週看到了我們的一位監管機構的聲明，請原諒，我們在轉型和簡化方面取得了有意義的進展。

Y es, and so as James says, the progress that we've that we've made it spans multiple parts of the consent order and transformation work. Remember that consent order transformation work includes risk. It includes controls, it includes compliance. It includes data and data related to the right military reporting. And we've got evidence and proof points of progress against all of those things.

是的，正如詹姆斯所說，我們所取得的進展涵蓋了同意令和轉型工作的多個部分。請記住，同意令轉換工作有風險。它包括控制，包括合規性。它包括與正確軍事報告相關的數據和數據。我們已經掌握了針對所有這些事情的進展的證據和證明點。

Thank you, Mark. And so transforming to answer your question about how the how do you think you said and serve our investors. At the same time, transforming City will drive benefits for our shareholders, our clients and our regulators. This business, not mutually exclusive, at the beginning of the year, we honed in on two priorities the transformation and improving our business performance. And we are able to do so because we've largely cleared the decks. We have a clear focused strategy. We've executed the divestitures. We've got a much simpler organization. So we can focus on these two priorities and we are able to do both. You can see that in our results again this quarter, multiple solid proof points on the execution of strategy, and we know what we need to do on both fronts. We have plans in place from the transformation and on the strategy, and we're executing against some we have been and we will be transparent when we have issues and how we are addressing them.

謝謝你，馬克。所以轉變來回答你的問題，即你認為你所說的話如何，並為我們的投資者服務。同時，城市轉型將為我們的股東、客戶和監管機構帶來利益。這項業務並不互相排斥，今年年初，我們專注於轉型和提高業務績效兩個優先事項。我們之所以能夠做到這一點，是因為我們基本上已經清理好了一切。我們有明確的重點戰略。我們已經執行了資產剝離。我們的組織要簡單得多。因此，我們可以專注於這兩個優先事項，並且我們能夠同時做到這兩點。你可以在我們本季的業績中再次看到，在策略執行方面有多個堅實的證據，我們知道我們需要在這兩方面做什麼。我們已經制定了轉型和策略計劃，我們正在執行一些我們已經制定的計劃，當我們遇到問題以及如何解決這些問題時，我們將保持透明。

Just to add a couple of data points to that, Mike, you've heard us mention some of these before, but we've retired platforms. We've reduced the number of data centers. Platforms are down some 300. We moved from 39 corporate loan platforms down to south of 20. We've got 20 cash equities execution platforms down to one. We reduced the six reporting ledgers down to 1, 11 sanction platforms down to one. And so we've been making considerable progress over the past last couple of years. With that said, there's a lot more work. Do you think about 30, we've got 11,000 global total read reports, right? So we've got to make sure that the data that's going into those reports is the quality of the data that we wanted to be. But more importantly that we're doing it efficiently, that it doesn't take thousands of people to [reconsole,] that information. And so this is an end to end process and the way we're approaching it. one example is the 2015 to a liquidity report that we have. It has 750,000 lines of data. And that data is it's important again that we're efficiently collecting it from multiple systems with standards and governance that ensures it's of the quality that we wanted to be without, again having to have manual activities supporting it.

只需添加一些數據點，邁克，您之前曾聽我們提到過其中一些，但我們已經淘汰了平台。我們減少了資料中心的數量。平台減少了約 300 個。我們將 6 個報告帳本減少到 1 個，將 11 個制裁平台減少到 1 個。因此，我們在過去幾年中取得了長足的進步。話雖如此，還有很多工作要做。你認為30，我們有11,000份全球總閱讀報告，對吧？因此，我們必須確保進入這些報告的數據符合我們想要的數據品質。但更重要的是，我們做得非常有效，不需要成千上萬的人來[重新控制台]這些資訊。所以這是一個端到端的過程以及我們處理它的方式。一個例子是我們所擁有的 2015 年流動性報告。它有750,000行數據。這些數據再次非常重要，我們可以透過標準和治理有效地從多個系統收集數據，以確保其達到我們想要的質量，同樣必須有手動活動來支持它。

Glenn Schorr, Evercore

格倫·肖爾，Evercore

Hi, thank you. So Mark. I heard your comments on credit this year. I'm talking US presence, personal banking. I heard your comments for credit. The rest of this year. And I've been kind of physician knows that you're very conservative reserves, but right now you put up a 3% margin. Credit costs are almost half of what revenues are in the space?

嗨，謝謝你。所以馬克.我今年聽到了您對信貸的評論。我說的是美國的存在，個人銀行業務。我聽到你的評論是為了信譽。今年剩下的時間。我是一名醫生，知道你們的準備金非常保守，但現在你們提供了 3% 的保證金。信貸成本幾乎是該領域收入的一半？

Yes. My question is, as we roll forward in a slowing economy with likely a little bit lower some rate cuts, how does the P&L evolves? How does it improve from here? Because can we be expecting of credit costs to come in and a slowing economy? And I'm just trying to figure out the path the path forward for i t could be impactful. It used to be the taxes to leave you today?

是的。我的問題是，隨著我們在經濟放緩的情況下前進，降息幅度可能會小一些，損益表會如何演變？從這裡開始如何改進？因為我們可以預期信貸成本的增加和經濟放緩嗎？我只是想找出一條可能有影響力的前進道路。以前的稅今天就留給你了？

Yes. Look, like I said, we do think that there is certainly upside to USPB. We're looking for that upside in the medium term. Targets that we've set for ourselves. You've got to remember that when you look at the quarter and you look at the half, frankly that we're still in a period where we're seeing the normalization of the cost of credit.

是的。聽著，就像我說的，我們確實認為 USPB 肯定有好處。我們正在尋找中期的上行空間。我們為自己設定的目標。您必須記住，當您查看本季和上半季時，坦白說，我們仍處於信貸成本正常化的時期。

And as I mentioned in the prepared remarks, you have kind of a compounding effect of multiple vintages now maturing at the same time that's playing through the P&L. And that's not just true for us. That's true for others as well. And so we'd expect and we are we do believe we're seeing some signs of a cresting when you look at delinquencies now. And so we would expect that was losses start to normalize and loss rates start to come down. You know, as we go go towards the medium term, []

正如我在準備好的評論中提到的，多個年份同時成熟的複合效應正在影響損益表。這不僅適用於我們。對於其他人來說也是如此。所以我們預計，我們確實相信，當你現在看看拖欠率時，我們會看到一些達到頂峰的跡象。因此，我們預期損失開始正常化，損失率開始下降。你知道，隨著我們走向中期，[]

At the same time, we're investing in the business and we're looking to see continued growth in volume and on the top line. And the combination of those things as we drive towards the medium term will help us to deliver both the top line growth and certainly improve returns from where we sit today. and in line with what we've guided to. So it's a combination of top line performance from volume and obviously the environment plays into that. But we feel like we've got a reasonable assumption around top line growth, their cost of credit normalizing continued discipline on the expense line, allowing for us to improve returns or cross that USPB. business.

同時，我們正在對該業務進行投資，我們希望看到銷售和營收的持續成長。當我們邁向中期時，這些因素的結合將幫助我們實現營收成長，並且肯定會提高我們今天所處的回報。並符合我們的指導。因此，這是銷量與營收表現的結合，顯然環境也發揮了作用。但我們覺得我們對營收成長有一個合理的假設，他們的信貸成本使費用線的持續紀律正常化，使我們能夠提高回報或超越 USPB。商業。

Okay. I appreciate all that. One quickie on DCM had amazingly good performance. There's been plenty of conversation about pull forward this year on just refi driving like three quarters of the activity. Could you just help us think through the second half when thinking about DCM, and just to make sure that we don't like start monitoring (inaudible) into perpetuity.

好的。我很感激這一切。 DCM 上的一位快速執行者的表現非常出色。今年有很多關於改裝駕駛的討論，佔活動的四分之三。在考慮 DCM 時，您能否幫助我們思考後半部分，並確保我們不喜歡開始永久監控（聽不清楚）。

Look I think when we think about the back half of '24, we're going to see a different mix of activity in banking. We do still expect demand to be quite strong across our capital market products because you've got a wall of maturing debt securities coming up in the second half that carry [audience] for a couple of years but we did see some clients accelerating issuances into the first half, getting ahead of potential market volatility. So if you put it all together, I think we expect the rate environment and the financing market to continue to become more accommodative as well as to continue deal-making with M&A being a bit larger in the overall mix, although some of the regulatory elements have put a [damper] on part of that.

我認為，當我們考慮 24 年下半年時，我們將看到銀行業的不同活動組合。我們仍然預期我們的資本市場產品的需求將相當強勁，因為下半年將出現一堵到期的債務證券，這些證券將在幾年內吸引[受眾]，但我們確實看到一些客戶加速發行到上半年，領先潛在的市場波動。因此，如果你把所有這些放在一起，我認為我們預計利率環境和融資市場將繼續變得更加寬鬆，並且繼續進行交易，併購在整體組合中規模更大，儘管一些監管因素已經在其中的一部分安裝了[阻尼器]。

The only thing I'd add to that is, look, the wallet for the year is obviously going to depend on a couple of things. So one, the return of a more normalized IPO market. Two, the direction and volatility of interest rate. The ongoing global conflicts that we're all seeing and witnessing and then finally, as Jane mentioned in her remarks, the elections and what those outcomes look like, not just in the US but abroad. And so there are a number of factors there that will will play to the wallet. But as we said, we believe we're well positioned to be there to serve our clients and do so in a way that makes good economic sense.

我唯一要補充的是，看，今年的錢包顯然取決於幾件事。第一，IPO市場更加正常化的回歸。二、利率的走向和波動。我們都看到和目睹了持續不斷的全球衝突，最後，正如簡在她的演講中提到的，選舉以及這些結果的樣子，不僅在美國，而且在國外。因此，有許多因素會對錢包產生影響。但正如我們所說，我們相信我們有能力為客戶提供服務，並以具有良好經濟意義的方式提供服務。

Jim Mitchell, Seaport Global.

吉姆·米切爾，海港全球公司。

Just Mark, maybe on NII down almost 4% year over year seemed a little bit more than the guidance of down modestly for the year. So can you discuss sort of the puts and takes this quarter and how we should think about the quarterly trajectory for the rest of the year?

就馬克而言，NII 年比下降近 4% 似乎比今年小幅下降的指導要多一點。那麼，您能否討論本季的看跌期權和看跌期權，以及我們應該如何考慮今年剩餘時間的季度軌跡？

Yeah. So I'd say a couple of things. So one, as I mentioned in the quarter, and if you look -- you see it on slide 9, ex-markets, we're down about 3%. That's largely driven by some FX translation that played through buy also some seasonally lower revolving card balances and then lower interest rates in Argentina. And what that is is in Argentina, we have capital there. The policy rate was adjusted downward. And as that happened, we obviously earn less on that capital that flows through the NII line.

是的。所以我想說幾件事。因此，正如我在本季提到的，如果你看第 9 張投影片，除市場外，我們下跌了約 3%。這主要是由一些外匯換算推動的，這些匯率換算是透過購買一些季節性較低的循環卡餘額，然後降低阿根廷的利率來實現的。那就是在阿根廷，我們在那裡有資本。政策利率下修。當這種情況發生時，我們透過 NII 線流動的資本顯然會減少收入。

As I think about the back half of the year and the guidance we have of modestly down there, a couple of puts and takes to keep in mind. So one is going to be rates, right? So as I think about the higher yield that we can earn on reinvestment, that will be a tailwind that plays through from an NII point of view.

當我想到今年下半年以及我們適度的指導時，我需要牢記一些觀點。那麼其中之一就是利率，對嗎？因此，當我想到我們可以透過再投資獲得更高的收益率時，從國家資訊基礎設施的角度來看，這將是一個有利的推動因素。

The second would be volume growth, particularly in our card loans portfolio. And we do expect to see continued volume growth across the -- certainly the branded portfolio. And so that will be another tailwind for us on the NII line.

第二個是數量成長，特別是我們的卡片貸款組合。我們確實預計整個品牌產品組合的銷售將持續成長。因此，這將成為我們 NII 線上的另一個推動力。

In terms of the headwinds, you've got the lower NII earned in Argentina from rates that'll continue to play through. We've got assumed higher average betas in 2024, specifically on the non-US side. We still have in our forecast the impact of CFPB late fees. So assuming that that goes into effect for this year, that will have an impact and it's in the forecast. And then the impact of lost NII from the exit that we have. And so the combination of those things will probably mean that NII in the back half of the year is a little bit higher than the first half, but again, consistent with the guidance that we gave of modestly down.

就不利因素而言，您在阿根廷獲得的 NII 較低，且利率將繼續發揮作用。我們假設 2024 年平均貝塔值會較高，特別是在非美國地區。我們的預測中仍有 CFPB 滯納金的影響。因此，假設該政策將於今年生效，將會產生影響，而這項影響已在預測中。然後是我們退出時失去 NII 的影響。因此，這些因素結合起來可能意味著下半年的 NII 略高於上半年，但同樣與我們給出的適度下降的指導一致。

That' helpful.

這很有幫助。

And maybe just quickly, just a similar question on expenses better than expected this quarter, but there was no restructuring or repositioning charges. I think to get to the high end of your range, you'd have to be up a little bit in the back half from 2Q run rate. Is that because you expect more repositioning, restructuring, in the second half? Or maybe just talk through expense trajectory from here?

也許很快就會出現類似的問題，即本季的支出優於預期，但沒有重組或重新定位費用。我認為要達到範圍的高端，你必須在第二季運行率的後半部分提高一點。這是因為您預計下半年會有更多的重新定位、重組嗎？或者也許只是從這裡討論一下費用軌跡？

Yeah. So that's right. When I talked about at the first quarter, I talked about a downward trend for each of the quarters after Q1. The second quarter came in a bit lower than we were expecting. I'm sticking with the guidance. And it does mean that the back half of the year will likely come in -- will come in higher than the second quarter.

是的。所以說是這樣的。當我談到第一季時，我談到了第一季之後每季的下降趨勢。第二季的業績略低於我們的預期。我堅持遵循指導。這確實意味著今年下半年的收入可能會高於第二季。

That's a combination of a couple of things, including on the pace of hiring and investment that we will do in the transformation work that has to be done. It also includes repositioning charges that we might take or need to take as we continue to work through our businesses across the firm and the franchise.

這是多種因素的結合，包括我們在必須完成的轉型工作中進行的招募和投資的步伐。它還包括我們在繼續進行整個公司和特許經營業務時可能承擔或需要承擔的重新定位費用。

And then the second quarter -- or the second quarter did have a one-time or so in some delayed spending that will pick up in the third and fourth quarter around advertising and marketing and some of the other line items. So yes, the second quarter will -- the third and fourth quarter, the back half will be higher than the second quarter, but consistent with the guidance that I've given.

然後第二季——或者第二季確實有一些一次性的延遲支出，這些支出將在第三和第四季圍繞廣告和行銷以及其他一些項目增加。所以，是的，第二季度將——第三季度和第四季度，後半部分將高於第二季度，但與我給出的指導一致。

Erika Najarian, UBS.

艾莉卡·納賈里安，瑞銀。

I have two questions and I'll [answer the] first one on expenses first, since it's a good follow-up to the previous. Mark, just to clarify, I have to say take the highest end of your range at $[53.8] billion. Just trying to think about how consensus will move. So we take that $53.8 billion and then add the $[285] of FDIC expenses year to date so far and add the civil money penalties of $136 million, so that gets us to $[54.2] billion for the year and any other repositioning charges in the second half of the year would already be included in the $53.8 billion?

我有兩個問題，我將首先[回答]第一個問題有關費用的問題，因為這是對前一個問題的很好的跟進。馬克，為了澄清一下，我不得不說，取你範圍的最高值，即 [538] 億美元。只是想想想共識將如何發展。因此，我們將這 538 億美元加上年初至今的 FDIC 支出 [285] 美元，再加上 1.36 億美元的民事罰款，這樣我們今年的支出就達到了 [542] 億美元以及任何其他重新配置費用下半年就已經納入538億美元了嗎？

So yes, the answer to your last part of your question is, yes. So in the range that I've given $53.5 billion to $53.8 billion, that includes our estimate for the full year of repositioning and any restructuring charges. That range excludes the FDIC special assessment that we saw earlier in the year, and it excludes CMP of $136 million.

所以是的，你問題最後一部分的答案是，是的。因此，在我給出的 535 億至 538 億美元範圍內，這包括我們對全年重新定位和任何重組費用的估計。該範圍不包括我們今年稍早看到的 FDIC 特別評估，也不包括 1.36 億美元的 CMP。

Got it.

知道了。

And my second question is for Jane, and I'm sure you're getting [tons] of the question on capital return. So you're buying back $1 billion (technical difficulty) or you plan to buy back $1 billion this quarter. It looks like you didn't buy back any in the second quarter and I'm asking this question in this context because consensus has a buyback of nearly $1 billion in the fourth quarter and staying at this rate for the first half of next year and ramping higher?

我的第二個問題是問簡的，我相信您已經收到了很多關於資本回報的問題。因此，您要回購 10 億美元（技術難度），或者您計劃本季回購 10 億美元。看來你在第二季度沒有回購任何股票，我在這種情況下問這個問題是因為共識在第四季度回購了近 10 億美元，並在明年上半年保持這一速度，爬得更高？

And I guess is the $1 billion number, a catch-up pace because you didn't buyback any in the second quarter. And I fully appreciate that you also have the Banamex IPO coming, which is different from peers that are also waiting for (inaudible) clarification. But I'm just wondering, do we need to wait for that box -- for that Banamex IPO for the company to feel comfortable moving away from that quarter-to-quarter guidance. And also, of course, I just wanted to readdress the beginning of the question when I asked specifically about the pace.

我猜是 10 億美元的數字，這是一個追趕的速度，因為你在第二季沒有回購任何股票。我非常感謝你們即將迎來 Banamex IPO，這與同樣在等待（聽不清楚）澄清的同行不同。但我只是想知道，我們是否需要等待那個框架——Banamex 首次公開募股，公司才能放心地放棄季度指導。當然，當我具體詢問速度時，我只是想重新解決問題的開頭。

Okay, so we are not going to be giving guidance going forward around our buybacks. We are going to continue to give quarterly and make it a quarterly determination as to the level. And a lot of that is to do with the uncertainty about the forthcoming regulatory changes. I think we were delighted to see a slight reduction in our stress capital buffer, reflecting the financial strength and resiliency of our business model. And also good to see the benefits of our strategy playing out. But with the regulatory changes uncertain, we are -- that's one of the major factors for us to continue with the quarterly guidance.

好的，所以我們不會就回購提供指導。我們將繼續每季提供一次，並按季度確定水平。這很大程度上與即將到來的監管變化的不確定性有關。我認為我們很高興看到壓力資本緩衝略有減少，這反映了我們業務模式的財務實力和彈性。也很高興看到我們的策略所帶來的好處正在發揮作用。但由於監管變化不確定，這是我們繼續實施季度指引的主要因素之一。

Yeah, that's right.

是啊，沒錯。

On the first part of your question, Erika, I'd say, look, we were in discussions with our regulators and we made a prudent call as it relates to buybacks in the quarter for Q2. So Q3, as we talked about, we would be at $1 billion, and that should not be necessarily viewed as a run rate level. As Jane mentioned, we'll take it quarter by quarter from here.

關於你問題的第一部分，艾莉卡，我想說，你看，我們正在與監管機構進行討論，我們做出了謹慎的決定，因為這與第二季的回購有關。因此，正如我們所討論的，第三季我們的營收將達到 10 億美元，這不一定被視為運行率水準。正如簡所提到的，我們將從這裡開始一個季度一個季度地進行。

Gerard Cassidy, RBC.

傑拉德·卡西迪，加拿大皇家銀行。

Mark, regarding the comments you made about the higher credit losses, the three factors that you gave us. Can you also talk about if this was a factor at all for you folks. Was there any FICO score inflation back during the pandemic that might be playing into these credit losses? And as part of the credit card question, you mentioned the CFPB -- the fees that you -- have factored them, the lower fees, you factor that into your forward look. Where do we stand on that? Do you guys have any color on that as well?

馬克，關於您對較高信用損失的評論，您向我們提供了三個因素。您能否也談談這對你們來說是否是一個因素。疫情期間是否有 FICO 評分通膨回升，可能造成這些信貸損失？作為信用卡問題的一部分，你提到了 CFPB——你已經考慮到的費用，較低的費用，你將其考慮到你的前瞻性中。我們對此持什麼立場？你們也有這樣的顏色嗎？

Yeah, so on the first part of the question, look, we all have talked about in the past the prospect of FICO inflation factor in the COVID period of time. We've been very, very focused on ensuring that acquisitions that we've made have been appropriately analyzed in the underwriting of that to get comfortable with the quality of new customers that we've been bringing on in light of the environment, we have looked at moving towards higher FICO scores for new account acquisitions.

是的，所以關於問題的第一部分，我們過去都討論過新冠疫情期間 FICO 通膨因素的前景。我們非常非常注重確保我們所做的收購在承保中得到適當的分析，以便對我們根據環境引入的新客戶的品質感到滿意，我們有著眼於提高新帳戶獲取的 FICO 分數。

But as I think about what we're seeing now there is that dichotomy that I mentioned, where we have the higher FICO score customers that are driving the spend growth and that, frankly have still continued strong balances and savings and it's really the lower FICO band customers where we're seeing the sharper drop in payment rates and more borrowing and so the FICO inflation has effectively fizzled out when we look at the mix and dynamic of the customer portfolio that we have at this point.

但當我想到我們現在所看到的情況時，存在著我提到的二分法，我們擁有較高的FICO 分數客戶，推動了支出成長，坦白說，我們仍然持續強勁的餘額和儲蓄，實際上是較低的FICO 分數我們看到支付率大幅下降和借貸增加，因此當我們審視目前客戶組合的組合和動態時，FICO 通膨實際上已經消失。

And in terms of CFPB late fees, I don't have an update on that. Like I said, we've built in an assumption in our forecast but in terms of the timing, I don't have a formal update on the certainty of it.

至於 CFPB 滯納金，我沒有最新消息。就像我說的，我們在預測中建立了一個假設，但就時間而言，我沒有關於其確定性的正式更新。

Ken Usdin, Jefferies.

肯‧烏斯丁，傑弗里斯。

Hy, Mark. Talking about the NII outlook and the fact that now we've got a little bit of a discrepancy starting between US rates, maybe higher for longer, and then the beginnings of some of the non-US curve starting to at least put forth their first cut. I know we've got that good chart that you have in the Q's about the relative contributions. Can you just help us understand a little bit of like just generally how you're thinking through that discrepancy and how that informs the difference between US-related NII and non-US-related NII as you go forward?

嘿，馬克。談到 NII 前景以及這樣一個事實，即現在我們在美國利率之間開始存在一點差異，可能會在更長時間內更高，然後一些非美國曲線的開始至少開始提出它們的第一個曲線切。我知道我們已經在問題中得到了關於相對貢獻的很好的圖表。您能否幫助我們了解一下您是如何思考這種差異的，以及您今後如何區分與美國相關的 NII 和非美國相關的 NII 之間的差異？

Yeah. Thank you.

是的。謝謝。

So look, I think that as we look at it out through the -- certainly through the medium term, we expect to see continued NII growth at obviously a modest level, certainly lower than what we've seen historically. And that's in large part because -- or in part I should say, because of how we've been managing the balance sheet and that has allowed for us to reinvest as securities have rolled off and earn a higher yield on them relative to what we were earning in some instances, they were five-year terms on some of these investments.

因此，我認為，當我們從中期來看時，我們預計NII將持續以明顯的適度水平增長，肯定低於我們歷史上看到的水平。這在很大程度上是因為——或者我應該說部分是因為我們管理資產負債表的方式，這使得我們能夠在證券滾動時進行再投資，並獲得相對於我們的收益更高的收益。某些情況下盈利，其中一些投資的期限為五年。

And so we still think there's some upside from a reinvestment point of view. The point you make around non-US dollar or US rates coming off that will play through a little bit as we think about the beta increases that we're expecting outside of the US. And so we would assume that we have [higher betas tick-up] outside of the US if rates come off in a more substantive way than we could see a little less NII pressure than we're forecasting there.

因此，我們仍然認為從再投資的角度來看有一些好處。當我們考慮我們預期美國以外地區的貝塔值增加時，您圍繞非美元或美元利率下降所提出的觀點將會發揮一點作用。因此，我們假設，如果利率以更實質的方式下降，那麼美國以外的國家/地區的NII壓力會比我們預測的要小一些，那麼我們在美國以外的地區就會出現[更高的貝塔值上升]。

But net-net, as I think about a combination of volume growth that we're expecting between loans and deposits over that medium term, the higher yield we can earn on our assets combined with on, the pricing capabilities that we have across the portfolio, offsetting some of that beta, we believe will have continued NII growth.

但是，淨淨值，當我考慮到我們預計中期貸款和存款之間的數量增長的組合時，我們可以從我們的資產中獲得更高的收益率，再加上我們在整個投資組合中擁有的定價能力，抵消部分貝塔值，我們相信NII將持續成長。

As I think about what I often point to in terms of the IRE analysis. And you have to remember that that is a shock to the current balance sheet and it assumes that the full curve is moving simultaneously cross currencies. And in that case, the 100-basis-point parallel shift downward would be a negative $1.6 billion with about $1.03 billion of that coming from non-US dollar. But again, it does assume that all of those currencies come down at the same time and doesn't account for the rebalancing of the balance sheet and things that I mentioned, like the reinvestment, higher yields that we'd be able to [earn].

當我思考我經常提到的 IRE 分析。你必須記住，這對當前的資產負債表來說是一個衝擊，並且它假設整個曲線同時跨貨幣移動。在這種情況下，平行下調 100 個基點將導致負 16 億美元，其中約 10.3 億美元來自非美元。但同樣，它確實假設所有這些貨幣同時下跌，並且沒有考慮到資產負債表的重新平衡以及我提到的事情，例如再投資，我們能夠[賺取]更高的收益率]。

Got it. Okay.

知道了。好的。

And just one follow-up on the OCC amendment and that's specifically related to the resource review plan. Do you have a line of sight on how long that will take you guys to finish? Because it seems like -- and is that what we should be thinking about in terms of just understanding like what's the side of what you need to get done in terms of the other language that's written in the order.

這只是 OCC 修正案的一項後續行動，與資源審查計劃特別相關。你們知道你們需要多久才能完成嗎？因為這似乎是我們應該考慮的問題，即理解訂單中編寫的其他語言需要完成的工作的哪一方面。

Ken, look. The resource review plan is just that it's a plan to ensure that we have sufficient resources allocated towards achieving a timely and sustainable compliance with the order. Essentially, if an area is delayed or looking as if it could be, we'll determine what additional resourcing, if any is required to get back on track, and then we'll share that with the OCC in a more formalized way than we do today. We obviously review this pretty constantly ourselves.

肯，看。資源審查計劃只是為了確保我們分配足夠的資源以實現及時和可持續地遵守命令的計劃。本質上，如果某個領域出現延誤或看起來可能出現延誤，我們將確定需要哪些額外資源（如果需要的話）才能重回正軌，然後我們將以比我們更正式的方式與 OCC 分享這一情況。今天做。顯然，我們自己也經常對此進行審查。

We're already working on the plan. After (technical difficulty) to the OCC, (technical difficulty) it will be a confer -- it will be confidential supervisory information that we can't disclose. So we won't be able to tell you that the plan is -- whether the plan -- what the nature of the plant is going to be. But it is it won't be much more complicated than what we talked about (multiple speakers) and we're expecting to get a bit of -- we're not expecting this to take long.

我們已經在製定計劃了。在（技術難度）OCC 之後，（技術難度）這將是一個授予——這將是我們不能透露的機密監管資訊。因此，我們無法告訴您該計劃 - 無論該計劃 - 工廠的性質將是什麼。但它不會比我們談論的（多個發言者）複雜得多，我們預計會得到一些東西——我們預計這不會花很長時間。

Betsy Graseck, Morgan Stanley.

貝特西‧格拉塞克，摩根士丹利。

Okay, so I know we talked a lot about expenses. I just have one overarching question here which is on how we should think about the path of expenses between now and the medium term as we have come quite a long way in the simplification process.

好的，我知道我們談了很多關於費用的問題。我在這裡只有一個首要問題，那就是我們應該如何考慮從現在到中期的支出路徑，因為我們在簡化過程中已經取得了巨大的進展。

Maybe you could give us a sense as to how far along simplification impact on expenses we are and overlapping with the regulatory requirements to these net out or are we skewed a little bit more towards regulatory requirements being a bit heavier than what's left on simplification from here?

也許您可以讓我們了解簡化對我們的費用影響有多遠，以及與這些淨額的監管要求是否重疊，或者我們是否更傾向於監管要求，比這裡簡化後留下的內容更重一些？

Thanks.

謝謝。

So thank you, Betsy.

謝謝你，貝特西。

I guess I'd say a couple of things. So I think we've said in the past, so the target for the medium term, I think 2026 is somewhere around $51 billion to $53 billion of expenses. As we've said, we'll have about a $1.5 billion in savings related to the restructuring that we've done and another $500 million to $1 billion related to net expense reductions from eliminating the stranded costs as well as additional productivity over that medium-term period.

我想我會說幾件事。所以我想我們過去曾說過，所以中期目標是 2026 年的支出約為 510 億至 530 億美元。正如我們所說，我們將節省約 15 億美元，與我們已經完成的重組相關，另外 5 億至 10 億美元，與消除擱淺成本以及透過該媒介提高生產力而減少的淨費用相關-任期。

And so we've made -- I think, very good headway as Jane has mentioned in the org simplification and the restructuring charges associated with that, those saves will have started to generate, some of those saves in the early part of that, meaning this year will likely be offset by continued investment that we're making in areas of the business like transformation, but also in business-led or -driven growth. And you should expect in terms of the trend that we would have a downward trend towards 2026 and achieving that range.

因此，我認為，正如簡在組織簡化和與之相關的重組費用中提到的那樣，我們取得了非常好的進展，這些節省將開始產生，其中一些節省是在早期的，這意味著今年可能會被我們在轉型等業務領域以及業務主導或驅動的成長方面所進行的持續投資所抵銷。從趨勢來看，您應該預期到 2026 年我們將呈下降趨勢並達到該範圍。

And I just want to reiterate, we remain confident that we will meet our 11% to 12% ROTCE target over the medium term. And we've got the -- we have the ability to manage the different elements we've been talking about today, making sure that we're investing sufficient resources into the transformation, so we can be on track with that as well as in our businesses as well as the return of capital to our shareholders and so we feel confident around that and good about that we can manage this.

我只想重申，我們仍然有信心在中期內實現 11% 至 12% 的 ROTCE 目標。我們有能力管理我們今天討論的不同要素，確保我們在轉型中投入足夠的資源，這樣我們就可以走上正軌我們的業務以及對股東的資本回報，因此我們對此充滿信心，並且對我們能夠管理好這一點感到滿意。

Yeah, I think that's a great point, Jane.

是的，我認為這是一個很好的觀點，簡。

Look, the reality is as was pointed out earlier, we spent about $3 billion last year, a little bit under that on the transformation-related work. And the plan is called for us to spend a little bit more than that this year. And frankly, in the first half of the year, as we work through the transformation work and some of the things that Jane and I have mentioned earlier in the year that we've been focused on live data and data regulation -- and data related to regulatory reporting, we've had to spend more than we had planned for in the first half, right?

你看，現實情況正如之前指出的那樣，我們去年在轉型相關工作上花費了大約30億美元，略低於這個數字。該計劃要求我們今年的支出比這個多一點。坦白說，在今年上半年，當我們完成轉型工作以及簡和我在今年早些時候提到的一些事情時，我們一直專注於即時數據和數據監管以及與數據相關的數據。我們上半年的支出超出了計劃，對吧？

And we've done that and we funded that. We've been able to find productivity opportunities that allow for us to still stay within the guidance that we've given for the full year. So we are managing this entire expense base, right? So not the whole $53 billion-plus of it. We are actively managing that with an eye towards what's required from a transformation point of view, to keep it on track, to accelerate in areas where we are behind, and to shore up areas where we are tracking in accordance to what the order requires and where are there other inefficiencies that can allow for us to free up the expense base.

我們已經做到了這一點並提供了資金。我們已經找到了提高生產力的機會，使我們仍然能夠保持在全年的指導範圍內。所以我們正在管理整個費用基礎，對吧？所以不是全部 530 億美元以上。我們正在累積哪些其他效率低的地方可以讓我們騰出開支基礎？

And so things like the work that Andy Sieg has done with the finance team around that expense base and finding efficiencies there are opportunities that we've been able to [achieve] out of the business, things that we have done in parts of USPB and that we have continued to get up there in parts of banking, which you see in the down 10% this quarter, our areas where we've been keenly focused on where they're duplicative roles, where they're inefficient processes that we can actually drive greater efficiency out of. So long-winded way of saying and we understand the expense guidance that we've given. We also understand and stress the importance of funding the transformation with what's required and we're doing both.

因此，像安迪·西格 (Andy Sieg) 與財務團隊圍繞費用基礎所做的工作以及尋找效率一樣，我們能夠從業務中[實現]一些機會，我們在 USPB 的部分部門所做的事情以及我們在銀行業的某些領域繼續取得進步，你可以看到本季下降了10%，在我們的領域，我們一直密切關注重複角色、流程效率低下的問題。如此冗長的說法，我們理解我們給予的費用指引。我們也理解並強調為轉型提供所需資金的重要性，並且我們正在同時做到這兩點。

Okay, great. Thank you very much. Appreciate that.

好的，太好了。非常感謝。感謝。

Vivek Juneja, JPMorgan.

維韋克·朱尼賈 (Vivek Juneja)，摩根大通。

Let me just clarify this, Mark and Jane just to make sure that we all have it right.

讓我澄清這一點，馬克和簡，只是為了確保我們都做對了。

The [$53.5] billion to $53.8 billion does not include anything thus far on what do you think you may need to spend on the resource review plan, meaning what additional resources you would have to put to fix the consent order. Am I right there?

到目前為止，[53.5] 億至 538 億美元不包括您認為您可能需要在資源審查計劃上花費的任何內容，這意味著您需要投入哪些額外資源來確定同意令。我在嗎？

No, you're not right. So as you've heard us talk about, Vivek for a while now that we knew there [would be] areas that we were behind now elements of our transformation program and that we began addressing those and making the investments some of that is in people, some of that is in technology spend. It's using different tools and capabilities to get areas addressed earlier. We began that earlier in the year. And you saw that acknowledge as well by our regulators who pointed to the fact that we've already begun addressing the areas that we're behind.

不，你錯了。因此，正如您聽到我們談論的那樣，Vivek 一段時間以來，我們知道我們在轉型計劃的一些要素中落後於某些領域，並且我們開始解決這些問題並對人員進行投資，其中一些是技術支出。它使用不同的工具和功能來更早解決問題。我們在今年早些時候就開始了這項工作。您也看到我們的監管機構也承認了這一點，他們指出我們已經開始解決我們落後的領域。

Mark?

標記？

That's right, Jane.

沒錯，簡。

And what you have heard is that despite having to spend more some $250 million or so more, we're not changing the guidance, right? And so we have -- as Jane mentioned, we have worked on areas already that we've needed to and we have looked for ways to absorb that and are doing so within our guide.

您聽說的是，儘管我們不得不花費大約 2.5 億美元左右，但我們不會改變指導方針，對吧？因此，正如簡所提到的，我們已經在我們需要的領域開展了工作，並且我們已經在尋找吸收這些領域的方法，並且正在我們的指南中這樣做。

Okay. So going forward, even though this plan is still to be sort of put together and approved by the regulators, we should not expect any change to this expense.

好的。因此，展望未來，儘管該計劃仍有待監管機構制定並批准，但我們不應期望這項費用會發生任何變化。

Look, the plan -- the resource review plan, as Jane mentioned, is what we're working through now with the regulators. That will be a process for demonstrating to them that we are spending and allocating the appropriate resources to accomplishing the commitments that we have. Appropriate resources can range from people, to technology, to enhancing our processes, and ensuring better execution.

看，正如簡所提到的，資源審查計劃是我們現在正在與監管機構合作的計劃。這將是一個向他們展示我們正在花費和分配適當資源來實現我們的承諾的過程。適當的資源可以包括人員、技術、增強我們的流程、確保更好的執行。

If you think about what that will entail, it will entail areas where we are delayed or behind as we identify those areas being able to tease out the root cause of any delay and ensure that we've got proper funding, allocated to get it back on track. And that's me framing out how I think about what something like this might look like.

如果你考慮一下這將帶來什麼，它將涉及我們被延誤或落後的領域，因為我們確定這些領域能夠找出任何延誤的根本原因，並確保我們有適當的資金，分配來收回它步入正軌。這就是我如何思考這樣的事情可能會是什麼樣子。

And so what we're saying is that if we identify issues in the quarters to come that we haven't identified already that's the process we're going to apply to those issues and as you've heard us say repeatedly, we're going to spend whatever is necessary to then get those things back on track and as we've done thus far this year, we're going to look for opportunities to absorb those headwinds.

因此，我們要說的是，如果我們在未來幾個季度發現了我們尚未發現的問題，這就是我們將應用於這些問題的流程，正如您反复聽到我們所說的那樣，我們正在我們將花費一切必要的資金來讓這些事情重回正軌，正如我們今年迄今為止所做的那樣，我們將尋找機會來吸收這些不利因素。

I hope that's clear.

我希望這是清楚的。

Matt O'Connor, Deutsche Bank.

馬特‧奧康納，德意志銀行。

Hi. Apologies if I missed it in the opening remarks, but what drove the decline in credit card revenues from 1Q to 2Q? It looks like they're down about 6% in aggregate, even though average loans went up, spending went up. What was the driver of that?

你好。如果我在開場白中錯過了，抱歉，是什麼導致信用卡收入從第一季到第二季下降？儘管平均貸款有所增加，但支出卻有所增加，但看起來總體下降了約 6%。其驅動因素為何？

Credit card revenues -- seasonality (multiple speakers)--

信用卡收入－季節性（多位發言者）－

Yeah, seasonality (multiple speakers)--

是的，季節性（多個發言者）--

Seasonality playing through there (multiple speakers) yeah, sequentially.

季節性在那裡播放（多個發言者）是的，按順序播放。

I think if you look year over year, you'll be up to see a pretty common trend there. The consumer is slowing in some of the -- in the spend as Mark had referred to, Matt, but and a lot of the spending and the growth areas we are seeing and the underlying numbers is being driven by the affluent customer.

我想如果你逐年觀察，你會發現一個相當普遍的趨勢。正如馬克所提到的，馬特，消費者的某些支出正在放緩，但是我們看到的許多支出和成長領域以及基本數字是由富裕客戶推動的。

Yeah, I think (multiple speakers)--

是的，我認為（多個發言者）—

Okay. And then (multiple speakers)--

好的。然後（多名發言者）—

--(multiple speakers) also the dy -- there's also the dynamic on the CRS of the reward on par across the portfolio of rewards playing through from one quarter to the other. So the combination of those things are playing through the revenue line there.

--（多位發言者）還有 dy -- 在從一個季度到另一個季度的獎勵組合中，CRS 上的獎勵也存在動態變化。因此，這些因素的結合正在透過那裡的收入線發揮作用。

But nothing that's particularly worrying us, Matt.

但沒有什麼讓我們特別擔心的，馬特。

Okay. And then just [separately] on the very early part of the prepared remarks, you talked about the dividends being capped in terms of what can be upstreamed from the bank to the holding company because of the OCC thing that came out this week. Were all intents and purposes like, does that impact how you run the company or subsidiary or impact liquidity or capital. I understood the comment, no change to dividends or buybacks at the holding company, but is there any impact from that that we would notice on the outside?

好的。然後，就在準備好的發言的最初部分，您談到了由於本週出現的 OCC 事件，從銀行到控股公司的上游股息受到限制。如果所有意圖和目的都是如此，這是否會影響您經營公司或子公司的方式或影響流動性或資本。我理解這個評論，控股公司的股息或回購沒有變化，但是我們會在外部注意到它有什麼影響嗎？

Thank you.

謝謝。

Look, let's be clear. This action does not impact our ability to return capital to our shareholders. The dividends that I referenced just inter-company payments from CBNA to the parent. So don't confuse what a dividend is here and we will -- it's not going to impact how we run the company, the subsidiary, the capital, or the liquidity at all and the dividends are not capped?

看吧，讓我們說清楚。這項行動不會影響我們向股東返還資本的能力。我提到的股息只是 CBNA 向母公司支付的公司間款項。因此，不要混淆這裡的股息是什麼，我們會——它不會影響我們營運公司、子公司、資本或流動性的方式，而且股息沒有上限？

Yeah, I think the -- Jane, that's right.

是的，我認為——簡，是的。

And I think we let's not lose sight of the purpose of the orders that are there. And the purpose of the orders that are there are to ensure that we're funding and allocating the effort appropriately, right. So the regulators want essentially the same thing we want, right, is for us to get this done, right? And so that is the primary objective.

我認為我們不要忽視這些命令的目的。這些命令的目的是確保我們適當地提供資金和分配工作，對吧。所以監管機構想要的基本上和我們想要的一樣，對吧，就是讓我們完成這件事，對嗎？這就是首要目標。

The reference to the dividending from out of CBNA up to the parent is certainly referenced there between now and establishing that resource review plan. But as Jane mentioned, that does not constrain the parent from doing the things that it would need to do. And as opposed to the -- it's not a cap what it is, is that anything above the debt service of the parent or the preferred dividends and other nondiscretionary obligations would require a non-objection from the OCC.

從現在到製定資源審查計劃期間，肯定會提到從 CBNA 到母公司的股息分配。但正如簡所提到的，這並不限制父母做它需要做的事情。與此相反的是——這不是上限，任何超出母公司償債或優先股股息和其他非自由裁量義務的支出都需要 OCC 的無異議。

Until the resource plan is agreeing (multiple speakers) and as you'll have seen, the resource plan needs to be submitted within 30 days. And as I indicated, we're working on that one and not anticipating that to be a problem.

在資源計劃達成一致之前（多位發言者），正如您所看到的，資源計劃需要在 30 天內提交。正如我所指出的，我們正在研究這個問題，預計這不會成為一個問題。

Saul Martinez, HSBC.

索爾·馬丁內斯，匯豐銀行。

I guess I just want to follow up on the latter question. I just want to be very clear. So what you're saying is that the requirement that CBNA receive a non-objection to -- before dividend upstream to the parent. That does not impact how you think about your capital flexibility, how you think about -- it doesn't restrict you in any way and shouldn't impact, for example, your ability to benefit from, for example, a Basel end-game rule that is soft and for some of the benefits, Mark, that you've talked about in terms of simplification. So you don't see this impacting your ongoing level of capital flexibility in your ability to repurchase stock going forward, if some of these things actually do play out.

我想我只是想跟進後一個問題。我只想說得非常清楚。所以你所說的是，在向母公司上游派發股息之前，CBNA 必須收到無異議的要求。這不會影響你如何看待你的資本靈活性，你如何思考——它不會以任何方式限制你，也不應該影響你從巴塞爾最終遊戲中受益的能力馬克，你在簡化方面談到了一些軟規則和一些好處。因此，如果其中一些事情確實發生的話，您不會認為這會影響您未來回購股票能力的持續資本靈活性水準。

No (multiple speakers) thank you.

不（多個發言者）謝謝。

A second question on I just wanted to follow up on USPB. I mean, I still -- I get the point that you're seeing a normalization in losses in cards. But even if I adjust for reserve builds, you (technical difficulty) single digits. I would think even at these [NCO] levels, your cards business is pretty profitable. Your [shale] player, when you're above pre-pandemic levels, but not (technical difficulty) it does seem like it's that much higher by dramatic amounts.

第二個問題是我只想跟進 USPB。我的意思是，我仍然 - 我明白你看到卡牌損失正在正常化。但即使我調整儲備構建，你（技術難度）也只有個位數。我認為即使在這些 [NCO] 水平上，您的信用卡業務也相當有利可圖。你的[頁岩]玩家，當你的水平高於大流行前的水平，但不是（技術難度）時，它看起來確實要高得多。

It would seem to imply that the retail bank is a huge drag on profitability, even maybe even losing money, I don't know, but can you just talk about what you can do to improve the retail bank profitability and just give any more color that you can in terms of the path to get to that high-teen [ROC] you talked about?

這似乎意味著零售銀行對盈利能力有巨大的拖累，甚至可能會虧損，我不知道，但你能談談你可以做些什麼來提高零售銀行的盈利能力，並提供更多的色彩嗎？到達你所說的那個高中生[ROC] 的路徑而言，你可以嗎？

Yeah, let me kick off that. And clearly, we're very focused on improving the returns in USPB to get us to the high-teens level over the medium term. And you've seen us generating healthy positive operating leverage this quarter. We've had a number of quarters of good revenue growth.

是的，讓我開始吧。顯然，我們非常注重提高 USPB 的回報，使我們在中期內達到十幾歲的水平。您已經看到我們本季產生了健康的積極營運槓桿。我們已經連續幾個季度實現了良好的收入成長。

And as Mark said, we're at the low point of the credit cycle and we knew this year, we would see the pressure on returns from the elevated NCLs and some of the industry headwinds you talked about. But as the NCL rates approach steady-state levels and the mitigating actions that all of us have been putting in place against the industry headwinds as those take hold, we expect the returns will improve and support the medium -- the firm-wide medium term target.

正如馬克所說，我們正處於信貸週期的低點，我們知道今年我們將看到 NCL 上升和您談到的一些行業逆風帶來的回報壓力。但隨著 NCL 利率接近穩態水平，以及我們所有人針對行業逆風採取的緩解行動，我們預計回報將會改善並支持中期——整個公司的中期目標。

In the retail bank, we're continuing to focus on growing share in our six core markets. And we're doing that leveraging our physical and digital assets. And it plays an important role in enabling the wealth continuum and the growth that we are looking at in our wealth franchise. We're continuing to improve our operating efficiency, being very disciplined in expense management and managing carefully the branch and digital productivity of the retail bank network. But the -- we're at the high point of the credit cycle. It's driving the low point for USPB and as I said in my remarks, we're expecting to see those returns improve from here.

在零售銀行方面，我們將繼續專注於擴大六大核心市場的份額。我們正在利用我們的實體和數位資產來做到這一點。它在實現財富連續體和我們在財富特許經營中尋求的成長方面發揮著重要作用。我們正在繼續提高營運效率，在費用管理方面非常嚴格，並仔細管理零售銀行網路的分行和數位生產力。但我們正處於信貸週期的最高點。它正在推動 USPB 的低點，正如我在演講中所說，我們預計這些回報將從這裡開始改善。

Steven Chubak, Wolfe Research.

史蒂文‧丘巴克，沃爾夫研究中心。

So Mark, I have a fairly technical question on the DTA utilization and specifically the NOLs. The deduction is still fairly significant at $12 billion and it roughly equates to about 10% of your market cap. And the good news here I suppose is that it should come back into capital over time, but we've seen very little utilization over the past two years despite the firm being profitable. And so I wanted to better understand is what's constraining your ability to utilize those DTAs? And are there catalysts on the horizon that can actually help accelerate that utilization beyond organic earnings generation?

馬克，我有一個關於 DTA 利用率，特別是 NOL 的相當技術性的問題。扣除額仍然相當可觀，達到 120 億美元，大約相當於您市值的 10% 左右。我認為這裡的好消息是，隨著時間的推移，它應該會重新回到資本中，但儘管該公司實現了盈利，但過去兩年我們看到的利用率很少。所以我想更了解是什麼限制了您利用這些 DTA 的能力？是否有即將出現的催化劑能夠真正幫助加速這種利用，超越有機獲利？

Yeah. Thank you.

是的。謝謝。

So I'm going to give you a very simple answer to a very complicated question. It really comes down to driving US income, right? And so we are focused on not just all of the things that we've mentioned, but driving higher income in the US that allows for us to utilize the disallowed DTA. We saw some of that in the quarter, and we expect to see more of it as we move through the medium term. But that is the major driver of that utilization.

因此，我將為一個非常複雜的問題提供一個非常簡單的答案。這確實歸結為推動美國收入成長，對吧？因此，我們不僅關注我們提到的所有事情，還關注提高美國的收入，使我們能夠利用不允許的雙重稅收協定。我們在本季度看到了其中的一些情況，並且預計隨著中期的發展，我們會看到更多這樣的情況。但這是利用率的主要驅動力。

And we have many of our business heads very much focused around that opportunity as well. So winning in the US is a very important leg, for example, of the strategy that this is refreshing. Similarly, we see opportunities in -- from the commercial bank, we see it in wealth. We see it in, obviously, in US personal banking and in services. So we're very focused from a business strategy point of view on this, not just from the financial side.

我們的許多業務主管也非常關注這個機會。因此，在美國獲勝是非常重要的一環，例如，這是令人耳目一新的策略。同樣，我們在商業銀行中看到了機會，我們在財富中看到了機會。顯然，我們在美國個人銀行和服務業中看到了這一點。因此，我們從業務策略的角度非常關注這一點，而不僅僅是從財務方面。

Thank you both for that color.

謝謝你們兩位的顏色。

And maybe just a quick follow-up just on the retail services business. We are seeing some evidence that your competitors in this space have been more aggressive leading with pricing effort to win some new mandates. So maybe you could just speak to what you're seeing across the competitors and your appetite or willingness to potentially offer better economics in response to increase competition from some of your peers?

也許只是零售服務業務的快速跟進。我們看到一些證據表明，您在這個領域的競爭對手在定價方面更加積極主動，以贏得一些新的授權。那麼，也許您可以談談您在競爭對手中看到的情況以及您的興趣或意願，以提供更好的經濟效益來應對來自某些同行的日益激烈的競爭？

Well, I think you'll be delighted to hear that we're very focused on returns rather than just on revenues. So when we enter into discussions with a partner who maybe a new RFP for there that portfolio or looking at new ones such as the one we just agreed with Dillard's. It's all about the returns and the profile of the business rather than the revenue side of things and it's the shift to probably from some of the ways in the past. But I'm very pleased with how disciplined the team has been around this, and we're seeing the benefits of it.

好吧，我想您會很高興聽到我們非常關注回報而不僅僅是收入。因此，當我們與合作夥伴進行討論時，該合作夥伴可能會為該產品組合提供新的 RFP，或正在尋找新的 RFP，例如我們剛剛與 Dillard 達成協議的 RFP。這一切都與企業的回報和形像有關，而不是與收入方面有關，這可能是從過去的某些方式的轉變。但我對團隊在這方面的紀律感到非常滿意，我們也看到了它的好處。

And that maybe different from what you hear and see from other players in the space. But as Jane mentioned, we're keenly focused on ensuring that yes, we have a good partnership, but that we're generating an appropriate return, that's part of achieving our medium-term targets.

這可能與您從該領域其他參與者聽到和看到的不同。但正如簡所提到的，我們非常注重確保我們擁有良好的合作關係，但我們正在產生適當的回報，這是實現我們中期目標的一部分。

And as you know, since you brought up retail cards, I mean when we think about how CECL works and the reserves you have to establish for these partnerships, we're establishing full lifetime reserves that's on the balance sheet where ultimately we end up splitting those through the partner-sharing economics. So it's another important consideration as we think about expanding and taking on these relationships and renegotiating partnerships to making sure that returns make good sense for us.

如您所知，既然您提到了零售卡，我的意思是，當我們考慮CECL 的運作方式以及您必須為這些合作夥伴關係建立的準備金時，我們正在資產負債表上建立完整的終生準備金，最終我們最終將其分開透過合作夥伴共享經濟。因此，當我們考慮擴大和建立這些關係並重新談判合作夥伴關係以確保回報對我們有意義時，這是另一個重要的考慮因素。

Yes, and Mark and I have no problem saying no to revenue that doesn't come at the right return and being very disciplined around that.

是的，馬克和我可以毫不猶豫地拒絕那些沒有帶來正確回報的收入，而且對此非常嚴格。

Vivek Juneja, JPMorgan.

維韋克·朱尼賈 (Vivek Juneja)，摩根大通。

Hi, sorry. Just to follow up on this whole consent order stuff, Jane.

嗨，抱歉。只是為了跟進整個同意令的事情，簡。

What do you think this does in terms of timing? How much longer for you to get this past due? Is that are you talking couple of years as of now longer by year? Any sense of that? Any sense of helping us think through that?

您認為這在時間安排上有何作用？您還需要多長時間才能收到逾期款項？你是說從現在開始已經是幾年了，一年比一年還長嗎？有什麼感覺嗎？有什麼意義可以幫助我們思考這個問題嗎？

Look, in terms of the consent order and the areas we've had delays, there are four areas to the consent order. It's risk management. It's data governance. It's around compliance and it's around control. As we've said, we were falling behind and in certain areas related to data and we've been investing to address the areas that we were behind. We also saw an increase in the scope related to regulatory reporting, so we added some more bodies of work there, and we are well underway.

看，就同意令和我們遇到延誤的領域而言，同意令有四個領域。這是風險管理。這是資料治理。它圍繞著合規性和控制。正如我們所說，我們在某些​​與數據相關的領域落後了，我們一直在投資來解決我們落後的領域。我們也看到與監管報告相關的範圍擴大，因此我們增加了更多的工作機構，並且進展順利。

So we are not expecting this to extend the original expectations that we have on when we will complete the body of work for the consent order. We have a target state for the different areas of it. We have the plan to achieve those target states. We'll make the investments necessary to ensure that we do so. We will try and get this done as quickly, but as robustly as possible, and we're doing this by making strategic fixes and investments rather than what I would call the old city way, which is a series of Band-Aids that remediate, but don't actually fix the underlying issue. And that way we are delivering for our shareholders as well as our regulators and our clients because we're putting in this -- we are putting in strategic solutions that will benefit all but I'm not expecting this to change the timeframe.

因此，我們預計這不會延長我們對何時完成同意令的工作主體的最初期望。我們對不同領域都有一個目標狀態。我們有實現這些目標狀態的計劃。我們將進行必要的投資以確保我們做到這一點。我們將嘗試盡快但盡可能穩健地完成這項工作，我們透過進行策略性修復和投資來做到這一點，而不是我所說的舊城方式，這是一系列補救措施的創可貼，但實際上並沒有解決根本問題。透過這種方式，我們正在為股東、監管機構和客戶提供服務，因為我們正在製定策略解決方案，這將使所有人受益，但我不認為這會改變時間框架。

Mike Mayo, Wells Fargo.

麥克梅奧，富國銀行。

Just two clarifications. So this is a very high profile amendment to the consent order. And I think what I hear you saying that if you can confirm, your risk compliance and controls are again passing grade, it's really the data. And as it relates to the data, you're talking about 11,000 regulatory reports on which had 750,000 lines of data. Is that really the scope of what you need to fix because people see this externally and say, hey, you're failing in terms of overall controls and resiliency. But I think I hear you saying it's really more about just the data and the regulatory reporting, which is important, but more of a slice of broader picture. Is that correct?

只是兩個澄清。因此，這是對同意令的一次非常引人注目的修訂。我想我聽到你說的是，如果你能確認，你的風險合規性和控制再次合格，這確實是數據。就數據而言，您談論的是 11,000 份監管報告，其中包含 750,000 行數據。這真的是您需要修復的範圍嗎，因為人們從外部看到這一點並說，嘿，您在整體控制和彈性方面失敗了。但我想我聽到你說這實際上更多的是關於數據和監管報告，這很重要，但更多的是更廣泛的情況的一部分。那是對的嗎？

Yeah, Mike, maybe I just -- maybe I -- you're asking a great and it's an important question. So maybe I try and explain what we -- the data elements because it's an area that Mark and I have pointed to.

是的，麥克，也許我只是——也許我——你問了一個很好的問題，這是一個重要的問題。所以也許我會嘗試解釋我們的數據元素，因為這是馬克和我指出的一個領域。

So first of all, we use data all over the firm. We've used it to (inaudible) 72 million customer statements every month. Our corporate clients, as you heard about at our service Investor Day access account data real time across multiple countries from CitiDirect and when moving $5 trillion roughly per day for those clients around the world. We trade billions of dollars in a millisecond on our trading platforms. We can see our liquidity positions real-time around the world. This can only be done if you've got pretty pristine data and highly automated ecosystems.

首先，我們使用整個公司的數據。我們每月使用它處理（聽不清楚）7,200 萬份客戶報表。正如您在我們的投資者日服務中所聽說的那樣，我們的企業客戶可以透過 CitiDirect 即時存取多個國家/地區的帳戶數據，並且每天為這些客戶在全球範圍內轉移約 5 兆美元。我們在我們的交易平台上在一毫秒內交易數十億美元。我們可以即時查看全球各地的流動性部位。只有擁有相當原始的數據和高度自動化的生態系統，才能做到這一點。

So but what is the transformation doing? What it is doing is simplifying how data moves through the firm. And it is about upgrading the management and governance over those flows. And as I've said, we're doing a strategic overhaul of large parts of our infrastructure.

那麼，轉型在做什麼呢？它正在做的是簡化資料在公司中的移動方式。它是關於升級這些流程的管理和治理。正如我所說，我們正在對大部分基礎設施進行策略性改革。

So what are we doing? We're making sure we're capturing data accurately using smart tools and automation. We'll often talk about this smart system, make sure there's no errors when we book a trade. We've seen our error rate down 85% as a result of it.

那我們在做什麼呢？我們確保使用智慧工具和自動化準確地捕獲數據。我們會經常談論這個智慧系統，確保我們預訂交易時沒有錯誤。我們發現我們的錯誤率因此降低了 85%。

We're housing our upstream data into standardized repositories. They are the golden sources and [in-person] data hub, which you've heard me talk about a few times and very golden source now for all of the downstream data use, populating thousands of regulatory reports Mark talked about and other areas.

我們將上游資料儲存到標準化儲存庫。它們是黃金來源和[面對面]數據中心，你已經聽我說過幾次了，現在對於所有下游數據使用來說都是非常黃金的來源，填充了馬克談到的數千份監管報告和其他領域。

And what a single repository means is that the data models, the data quality rules, the controls you put in place that govern and manage that data, they all sit in one place rather than being distributed all over the [firm] as they have been historically.

單一儲存庫意味著資料模型、資料品質規則、用於管理和管理資料的控制措施都位於一個地方，而不是像以前那樣分佈在整個[公司] 中。

Mark's been investing in building a standardized reporting infrastructure. You've heard us talk about a single full suite reporting ledger versus the six or so reporting ledgers that we had in the past. And we're delivering all of this through consolidated systems, through the automation and streamlining of data flows. So instead of being in multiple pipes, the flows go through single pipes. It's a -- sorry to get a bit plummer on you for a moment. But I think it's important to understand what it is because it's a lot of work. It's a strategic overhaul. It's not a series of tactical fixes.

馬克一直在投資建設標準化的報告基礎設施。您已經聽過我們談論單一全套報告分類帳與我們過去擁有的大約六個報告分類帳。我們透過整合的系統、資料流的自動化和簡化來提供所有這些。因此，流量不是在多個管道中，而是透過單一管道。很抱歉，我暫時對你態度有些冷淡。但我認為了解它是什麼很重要，因為它需要大量工作。這是一次策略性改革。這不是一系列戰術修復。

Where we're behind as we do the work on data, we identify specific issues we need to fix as we execute the plan that we have in place is the more areas to address than we knew back when we did the plan. So we've -- and we've also accelerated to work on improving the accuracy of our regulatory reports, and we increased the scope of this work as well. It's more comprehensive than originally planned.

當我們在數據方面工作落後時，我們會在執行計劃時確定需要解決的具體問題，而我們現有的計劃需要解決的領域比我們制定計劃時所知道的要多。因此，我們已經加快了提高監管報告準確性的工作，並且還擴大了這項工作的範圍。它比最初計劃的更全面。

So what we're doing? We're adding resources and data experts. We're learning from best practices. And we're using some great AI and other data tools that are helping to identify anomalies and data and data flows much quickly. We're also to -- to some of the culture side, we're learning from pilot. How do we accelerate broader deployment at scale across the (technical difficulty) consistent enterprise-wide manner.

那我們在做什麼？我們正在增加資源和數據專家。我們正在學習最佳實踐。我們正在使用一些出色的人工智慧和其他數據工具，以幫助快速識別異常情況以及資料和資料流。我們也——在文化方面，我們正在向試點學習。我們如何以（技術難度）一致的企業範圍方式加速更廣泛的大規模部署。

So all of these things in the data side are going to enable us to leapfrog competitors, more revenue opportunities, better client service, fewer buffers, drive more efficiencies. And at the end is the end goal here is it becomes a competitive advantage for the firm. That is the data plan. Clearly, there's been a very important element of it related to the consent orders we're behind in a few areas. We're investing. We've already begun that investment as Mark and I've talked about to get it done, we'll get it done.

因此，數據方面的所有這些都將使我們能夠超越競爭對手、獲得更多收入機會、更好的客戶服務、更少的緩衝、提高效率。最後的最終目標是成為公司的競爭優勢。這就是數據計劃。顯然，其中有一個非常重要的因素與我們在一些領域所支持的同意令有關。我們正在投資。我們已經開始了這項投資，正如馬克和我所說的那樣，我們會完成它。

And the only thing I'll (multiple speakers)--

我唯一要做的（多名發言者）—

-- (multiple speakers) real shortfall.

——（多位發言者）的真正不足。

Sorry, what was that, Maike?

抱歉，那是什麼，麥克？

I wanted just to say real shortfall after that. So you're doing all this great stuff, but you still fell short, just like one sentence (technical difficulty) despite doing all this great stuff that you described. The regulators still said you didn't get it done. Why after doing all that didn't get it done in the eyes of the regulators? And why will it be fixed now? Just like a one sentence explanation for that if we have it.

之後我只想說真正的不足。所以你正在做所有這些偉大的事情，但你仍然達不到要求，就像一句話（技術難度），儘管做了你所描述的所有這些偉大的事情。監管機構仍然說你沒有完成。為什麼做了這一切之後卻沒有在監理者眼中完成？為什麼現在要修復它？就像我們有一句話的解釋一樣。

I always said that a transformation of this magnitude over multiple years would not be linear. We have many steps forward. We have setbacks. We adjust. We learn from them. We move forward and we get a contract.

我總是說，多年來如此大規模的轉變不會是線性的。我們還有很多進步。我們有挫折。我們調整。我們向他們學習。我們繼續前進並獲得合約。

And Mike, if I could just put one number into context because you played back the 11,000, which was a number of global regulatory reports to cross the landscape here. They arounde probably 15 to 30 that are core US reports that are pivotal to our US regulators. And a lot of what we're discussing here is about ensuring that we're prioritizing the data that impacts those 15 to 30 reports as we work through this.

麥克，如果我能把一個數字放在背景中，因為你回放了 11,000 份報告，這是一些跨越這裡的全球監管報告。大約有 15 到 30 份美國核心報告，對我們的美國監管機構至關重要。我們在這裡討論的很多內容都是為了確保我們在處理此問題時優先考慮影響這 15 到 30 份報告的數據。

There are no further questions. I'll now turn the call over to Jenn Landis for closing remarks.

沒有其他問題了。現在我將把電話轉給詹·蘭迪斯（Jenn Landis）做總結發言。

Thank you all for joining us. Please let us know if you have any follow-up questions.

感謝大家加入我們。如果您有任何後續問題，請告訴我們。

Thank you.

謝謝。

This concludes Citi's second quarter 2024 earnings call. You may now disconnect.

花旗 2024 年第二季財報電話會議至此結束。您現在可以斷開連線。