花旗銀行 (C) 2022 Q1 法說會逐字稿

Hello, and welcome to Citi's First Quarter 2022 Earnings Review with Chief Executive Officer, Jane Fraser; and Chief Financial Officer, Mark Mason. Today's call will be hosted by Jen Landis, Head of Citi Investor Relations. (Operator Instructions) Also, as a reminder, this conference is being recorded today. (Operator Instructions)

您好，歡迎與首席執行官簡·弗雷澤一起參加花旗 2022 年第一季度收益回顧；和首席財務官馬克梅森。今天的電話會議將由花旗投資者關係主管 Jen Landis 主持。 （操作員說明）另外，作為提醒，今天正在錄製此會議。 （操作員說明）

Ms. Landis, you may begin.

蘭迪斯女士，你可以開始了。

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

謝謝你，接線員。早上好，感謝大家加入我們。我想提醒您，今天的演示文稿可在我們的網站 citigroup.com 上下載，其中可能包含基於管理層當前預期的前瞻性陳述，並受不確定性和環境變化的影響。由於多種因素，包括我們提交給美國證券交易委員會的文件中描述的因素，實際結果可能與這些陳述存在重大差異。

With that, I'll turn it over to Jane.

有了這個，我會把它交給簡。

Thank you, Jen. And I'd like to start by reiterating my appreciation to those of you who participated in our Investor Day last month. We greatly value the opportunity to walk you through our refreshed strategy and our plans for the next few years. Given how much time we spent on our strategy that day, today, we'll be focusing on the quarter. Nonetheless, as we committed, we will keep you updated on our progress, and you can see the latest report card on Slide 2.

謝謝你，珍。首先，我想重申我對上個月參加我們投資者日的各位的感謝。我們非常重視有機會引導您了解我們更新後的戰略和未來幾年的計劃。鑑於我們那天在戰略上花費了多少時間，今天，我們將專注於本季度。儘管如此，正如我們承諾的那樣，我們會及時向您通報我們的進展，您可以在幻燈片 2 上看到最新的成績單。

Today is also the first time we're reporting quarterly results under our new segmentation, which will help you track our efforts. I've got to say it feels like an understatement to say that a lot has happened since Investor Day. So I'm going to talk about the macro environment first. And then after I talk about the quarter, I'll discuss how we're handling Russia, and Mark is also going to go through it in more detail.

今天也是我們首次在新細分下報告季度業績，這將幫助您跟踪我們的工作。我不得不說，說自投資者日以來發生了很多事情，感覺有點輕描淡寫。所以我先說宏觀環境。然後在我談到本季度之後，我將討論我們如何處理俄羅斯，馬克也將更詳細地介紹它。

We've been on the front foot since the potential for war first emerged, and we intend to remain so. The Russian invasion of Ukraine and the sanctions it triggered unleashed an enormous supply shock on the world, further fueling inflation and placing global growth under considerable pressure. Back recently from seeing clients in Europe and the Middle East, it is security, yet energy, food, defense, cyber or operational resilience that has risen to the top of their strategic dialogue. The macro-outlook for the rest of the year can only be described as complex and uncertain. And while my job is to prepare for all outcomes, our view is that strong nominal income growth and continuing momentum in the labor market will help support near-term growth in the U.S. economy in the face of inflationary pressures. But we expect material regional differences in the impact with economic growth in the individual consumer and businesses in Europe hit hardest.

自從戰爭的可能性首次出現以來，我們就一直處於領先地位，並且我們打算保持這種狀態。俄羅斯對烏克蘭的入侵及其引發的製裁對世界造成了巨大的供應衝擊，進一步加劇了通貨膨脹，並使全球增長面臨相當大的壓力。最近看到歐洲和中東的客戶，安全、能源、食品、國防、網絡或運營彈性已上升到他們戰略對話的首位。今年剩餘時間的宏觀前景只能用複雜和不確定來形容。雖然我的工作是為所有結果做好準備，但我們的觀點是，強勁的名義收入增長和勞動力市場的持續動力將有助於支持美國經濟在面臨通脹壓力時的近期增長。但我們預計，歐洲個人消費者和企業的經濟增長受到的影響最大。

With central banks responding to inflation, we're entering a period of higher rates and a flatter U.S. yield curve. Energy and commodities are at the center of the storm globally, but we don't believe we're at the start of a new long super cycle, and we do expect prices to fall to more normal levels. So with that as a backdrop, I think the firm performed reasonably well this quarter. Earlier today, we reported net income of $4.3 billion, EPS of $2.02 and an RoTCE of 10.5%. These numbers include impacts related to the divestitures, so the underlying business performance was stronger to the tune of about 150 basis points of RoTCE.

隨著各國央行對通脹做出反應，我們正在進入一個利率上升和美國收益率曲線趨於平坦的時期。能源和大宗商品處於全球風暴的中心，但我們不認為我們正處於新的長期超級週期的開始，我們確實預計價格將跌至更正常的水平。因此，在此背景下，我認為該公司本季度的表現相當不錯。今天早些時候，我們報告了 43 億美元的淨收入，2.02 美元的每股收益和 10.5% 的 RoTCE。這些數字包括與資產剝離相關的影響，因此基礎業務表現強於 RoTCE 約 150 個基點。

And let's turn to the performance of our 5 main reporting units. Well, given our emphasis on Services, I'm particularly pleased with our performance in Treasury and Trade Solutions, fee growth, trade loans and cross-border transactions buoyed by higher rates led to year-over-year revenue growth of 18%. Securities Services also performed well despite the impact of markets with revenues up 6%. In our Markets business, our traders navigated a volatile environment quite well, aided by our mix with notable performance amongst corporate clients and strong gains in FX and commodities. This led to revenues almost equal to the very active first quarter of 2021.

讓我們看看我們 5 個主要報告單位的表現。好吧，鑑於我們對服務的重視，我對我們在資金和貿易解決方案、費用增長、貿易貸款和跨境交易方面的表現感到特別滿意，高利率導致收入同比增長 18%。儘管受到市場影響，證券服務也表現良好，收入增長 6%。在我們的市場業務中，我們的交易員很好地駕馭了動蕩的環境，這得益於我們在企業客戶中的顯著表現以及外彙和商品的強勁收益。這導致收入幾乎等於非常活躍的 2021 年第一季度。

As you might expect, Investment Banking is a different story. While our performance on the advisory side was respectable, I think we can perform a bit better in equity and debt capital markets going forward, even if the wallet remains smaller. Our pipelines are healthy and loan demand is on the rise. Having said that, we don't expect robust activity in the capital markets to resume in the industry until the geopolitical situation and client sentiment improve.

正如您所料，投資銀行業務是另一回事。雖然我們在諮詢方面的表現可觀，但我認為我們可以在未來的股票和債務資本市場表現更好，即使錢包仍然較小。我們的管道健康，貸款需求正在上升。話雖如此，在地緣政治局勢和客戶情緒改善之前，我們預計資本市場不會恢復活躍。

In U.S. Personal Banking, we continue to see signs of how healthy and resilient the consumer is through our cost of credit and their payment rates. We see good engagement through key drivers such as card loans and the spend volume growth. So we like where this business is headed. Geopolitics dampened performance in Global Wealth Management this quarter. While revenues improved in the U.S., our clients in Asia pulled back on new investments and something we saw in our Markets franchise as well. As you know, we're hiring bankers and enhancing our client offerings such as Citi Alliance, which we launched last month as a unique platform to support independent advisers. As a result of these efforts, we continue to add clients in both the Private Bank and in Citigold.

在美國個人銀行業務中，我們繼續通過我們的信貸成本和他們的支付率看到消費者健康和有彈性的跡象。我們通過信用卡貸款和消費量增長等關鍵驅動因素看到了良好的參與度。所以我們喜歡這項業務的發展方向。地緣政治影響了本季度全球財富管理的表現。雖然美國的收入有所改善，但我們在亞洲的客戶撤回了新投資以及我們在 Markets 特許經營中看到的一些東西。如您所知，我們正在招聘銀行家並增強我們的客戶服務，例如我們上個月推出的花旗聯盟，作為支持獨立顧問的獨特平台。由於這些努力，我們繼續在私人銀行和花旗銀行增加客戶。

Turning to capital. We returned $4 billion to our shareholders through stock buybacks and dividends during the first quarter. We now have about 6% fewer common shares outstanding than we did a year ago. At the same time, a sharp increase in interest rates negatively impacted our capital through OCI and largely caused our common equity Tier 1 capital ratio to come in at 11.4% this quarter.

轉向資本。我們在第一季度通過股票回購和股息向股東返還了 40 億美元。我們現在的流通普通股比一年前減少了大約 6%。與此同時，利率的急劇上升通過 OCI 對我們的資本產生了負面影響，並在很大程度上導致我們的普通股一級資本比率在本季度達到 11.4%。

I want to be upfront with you about the fact that the macro and geopolitical environment, which I spoke about, combined with the impacts of our divestitures, create both headwinds and tailwinds for our capital ratios this year. Now whilst this will impact the level of our stock buybacks this year, we have a path to our year-end target of 12%. And Mark is going to walk you through these details. And let me be clear, we remain committed to continuing to return excess capital to our shareholders.

我想坦率地告訴你一個事實，我談到的宏觀和地緣政治環境，加上我們資產剝離的影響，給我們今年的資本比率帶來了不利因素和不利因素。現在，雖然這將影響我們今年的股票回購水平，但我們有辦法實現 12% 的年終目標。馬克將帶您了解這些細節。讓我明確一點，我們仍然致力於繼續將多餘的資本返還給我們的股東。

As you heard at Investor Day, we're focused on our transformation, and we're making the investments in our infrastructure, risk and controls and also in our talent and our culture to modernize our bank and to make Citi a winning firm. I recognize that these investments impact our expenses and our returns in the short run. But I firmly believe that success here will not only lead to satisfying our regulatory obligations, but also to improving our competitiveness and our returns in the medium term.

正如您在投資者日聽到的那樣，我們專注於我們的轉型，我們正在對我們的基礎設施、風險和控制以及我們的人才和文化進行投資，以使我們的銀行現代化並使花旗成為一家成功的公司。我認識到這些投資會在短期內影響我們的開支和回報。但我堅信，這裡的成功不僅會導致我們履行監管義務，還會提高我們的競爭力和中期回報。

So far this year, we've announced new agreements to sell a further 7 consumer businesses in Asia and EMEA, the most recent of which were India and Bahrain. We are beginning the sales process in Mexico, and there is significant interest in this iconic franchise. As you've heard me say, this is not an uncomplicated transaction, given we will be separating our operations in order to retain our institutional presence. We will take the time necessary to do this the right way and decide which transaction is in the best interest of our shareholders. And we will keep you posted on any development concerning the 3 remaining markets: China, Poland and of course, Russia.

今年到目前為止，我們已經宣布了新的協議，將在亞洲和歐洲、中東和非洲地區出售另外 7 家消費業務，其中最近的是印度和巴林。我們正在墨西哥開始銷售流程，人們對這個標誌性的特許經營有著濃厚的興趣。正如你聽到我說的，這不是一個簡單的交易，因為我們將分離我們的業務以保留我們的機構存在。我們將花費必要的時間以正確的方式進行，並決定哪項交易最符合我們股東的利益。我們將隨時向您發布有關剩餘 3 個市場的任何進展：中國、波蘭，當然還有俄羅斯。

We started to carefully reduce our operations in and our exposures to Russia in January, and we benefited from being on the front foot here. We've been managing down our financial exposures, both in level and composition and there at a reasonable level, especially given the additional reserves we took during the quarter. We've also increased reserves for the second and third order impact of the war beyond Russia and Ukraine. And our intention to sell significant portions of our local business in Russia remains. We are in continuous communication with the U.S. government, and we continue to do our part to enforce the sanctions regime.

1 月份，我們開始謹慎地減少在俄羅斯的業務和在俄羅斯的風險敞口，我們從這裡的領先地位中受益。我們一直在管理我們的財務風險，無論是在水平和構成上，而且在合理的水平上，尤其是考慮到我們在本季度採取的額外準備金。我們還為俄羅斯和烏克蘭以外的戰爭的二級和三級影響增加了儲備。我們仍然打算出售我們在俄羅斯的大部分本地業務。我們與美國政府保持持續溝通，我們將繼續儘自己的一份力量來執行製裁制度。

But I've run out of words to describe the tragic consequences of the war in Ukraine. I remain incredibly proud of how our people have risen to the occasion from every corner of our firm. Our people in Ukraine have kept our bank operating in the country where they can help NGOs deliver aid on the ground and help society function as best as possible. And many of our colleagues have opened their homes to refugees, and we will continue to help in any way we can.

但是我已經用盡了語言來描述烏克蘭戰爭的悲慘後果。我仍然為我們的員工如何從我們公司的各個角落挺身而出感到無比自豪。我們在烏克蘭的員工一直讓我們的銀行在該國運營，他們可以幫助非政府組織在當地提供援助並幫助社會盡可能發揮最佳作用。我們的許多同事已經向難民開放了家園，我們將繼續盡我們所能提供幫助。

So with all that is going on in the world, we remain laser-focused on the execution of our strategy and our transformation. I expect macro environment to remain unpredictable to say the least in the backdrop of a war, which is equally tragic and unnecessary and a persistent pandemic. And I can speak to the last one personally, having just recovered from a brief encounter with COVID, as much as I would like to, I can't blame Paco for it.

因此，面對世界上正在發生的一切，我們仍然專注於戰略的執行和轉型。我預計宏觀環境至少在戰爭的背景下仍然難以預測，戰爭同樣悲慘、不必要，而且是一場持續的大流行。我可以親自與最後一位交談，剛剛從與 COVID 的短暫接觸中恢復過來，儘管我願意，但我不能為此責怪帕科。

Now I'd like to turn it over to Mark, and then we will be delighted to take your questions.

現在我想把它交給馬克，然後我們很樂意回答你的問題。

Thank you, Jane, and good morning, everyone. I'm going to start with the firm-wide financial results, focusing on year-over-year comparisons for the first quarter, unless I indicate otherwise, then spend a little more time on expenses in Russia and end with the results of each segment.

謝謝你，簡，大家早上好。除非我另有說明，否則我將從公司範圍內的財務業績開始，重點關注第一季度的同比比較，然後花更多時間在俄羅斯的支出上，並以每個部門的業績結束.

On Slide 4, we show financial results for the full firm. As Jane mentioned earlier, in the first quarter, we reported net income of $4.3 billion and an EPS of $2.02 with an RoTCE of 10.5% on $19.2 billion of revenues. Embedded in these results are Asia consumer divestiture-related impacts that are detailed in the appendix of the presentation. In the quarter, total revenues decreased 2% as strength in net interest income driven by Services and PBWM, was more than offset by lower noninterest revenue across businesses. That said, we continue to see strong performance in the key business drivers we shared on Investor Day, which I will walk you through in detail shortly.

在幻燈片 4 中，我們展示了整個公司的財務業績。正如 Jane 之前提到的，在第一季度，我們報告的淨收入為 43 億美元，每股收益為 2.02 美元，RoTCE 為 10.5%，收入為 192 億美元。這些結果中嵌入了與亞洲消費者剝離相關的影響，這些影響在演示文稿的附錄中進行了詳細說明。本季度，總收入下降 2%，原因是服務和 PBWM 推動的淨利息收入強勁，但被各業務部門非利息收入的下降所抵消。也就是說，我們繼續看到我們在投資者日分享的關鍵業務驅動因素表現強勁，我將很快向您詳細介紹。

Total expenses of $13.2 billion increased 15% or 10% excluding the Asia divestiture-related impacts I just mentioned. Cost of credit was $755 million as net credit losses of $872 million were partially offset by a net ACL release. Embedded in the net ACL release is a Russia-related build of approximately $1.9 billion. This includes $1 billion related to exposure to Russia and about $900 million to account for the broader impact on the macro environment. This was more than offset by a release related to a COVID-19 uncertainty reserve, primarily in U.S. Personal Banking, given the continued resilience of the underlying portfolio, specifically in the U.S. As of today, we have about $17.9 billion in total reserves, with a reserve to funded loan ratio of 2.35%.

132 億美元的總支出增加了 15% 或 10%，不包括我剛才提到的與亞洲剝離相關的影響。信貸成本為 7.55 億美元，淨信貸損失 8.72 億美元被淨 ACL 釋放部分抵消。嵌入在淨 ACL 版本中的是與俄羅斯相關的大約 19 億美元的構建。這包括與俄羅斯風險敞口相關的 10 億美元和用於說明對宏觀環境的更廣泛影響的約 9 億美元。鑑於基礎投資組合的持續彈性，特別是在美國，與 COVID-19 不確定性準備金相關的釋放（主要是在美國個人銀行業務中）抵消了這一點。截至今天，我們的總準備金約為 179 億美元，其中準備金與融資貸款的比率為 2.35%。

On Slide 5, we show an expense walk for the first quarter with the key underlying drivers. As I mentioned earlier, we incurred some divestiture-related costs this quarter. These costs largely related to a goodwill write-down that we incurred in legacy franchises as part of our resegmentation and divestitures. It is important to note the goodwill impact is capital neutral. Excluding the divestiture-related costs, expenses increased by approximately 10%, 3% of the increase was driven by transformation investments with about 2/3 related to the risks, controls, data and finance programs, and approximately 30% of that is related to technology investments. About 2% of the increase was driven by business-led investments as we continue to hire commercial and investment bankers as well as client advisers.

在幻燈片 5 中，我們展示了第一季度的主要潛在驅動因素的支出情況。正如我之前提到的，本季度我們產生了一些與資產剝離相關的成本。這些成本在很大程度上與我們在傳統特許經營權中發生的商譽減記有關，這是我們重新細分和資產剝離的一部分。值得注意的是，商譽影響是資本中性的。剔除與剝離相關的成本，費用增加了約 10%，其中 3% 的增長是由轉型投資推動的，其中約 2/3 與風險、控制、數據和財務計劃有關，其中約 30% 與技術投資。隨著我們繼續聘請商業和投資銀行家以及客戶顧問，大約 2% 的增長是由業務主導的投資推動的。

In addition, we are investing in technology across services, wealth and cards. 1% was due to higher revenue and volume-related expenses, largely in Markets and cards. And approximately 4% was driven by inflation and other risk and control investments, partially offset by productivity savings. Across all of these buckets, we continue to invest in technology, which is up 12% for the quarter.

此外，我們正在對服務、財富和卡片方面的技術進行投資。 1% 是由於較高的收入和與數量相關的費用，主要是在市場和卡片方面。大約 4% 是由通貨膨脹和其他風險和控制投資驅動的，部分被生產力節省所抵消。在所有這些方面，我們繼續投資於技術，本季度增長了 12%。

On Slide 6, we provide an update on our exposure to Russia. As Jane mentioned, as of the end of the quarter, our remaining exposure to Russia stood at about $7.8 billion, down from $9.8 billion at year-end. And importantly, the mix of the remaining exposure has changed and shifted in a positive way. We have reduced our direct Russia country risk exposure from $5.4 billion to about $3.7 billion, which consists of loans, AFS, derivatives and off-balance sheet exposure. The remaining exposure, which previously totaled $4.4 billion, now totals $4.1 billion and consist of deposits and cash with the Central Bank, reverse repos and cross-border exposure. Additionally, our net investment in our Russian entity is now approximately $700 million, down from about $1 billion at year-end. And the currency translation adjustment or CTA related to our net investment stands at $1 billion.

在幻燈片 6 中，我們提供了我們對俄羅斯的了解的最新情況。正如簡所說，截至本季度末，我們在俄羅斯的剩餘敞口約為 78 億美元，低於年底的 98 億美元。重要的是，剩餘曝光的組合已經改變並以積極的方式轉移。我們已將直接俄羅斯國家風險敞口從 54 億美元降至約 37 億美元，其中包括貸款、AFS、衍生品和表外敞口。剩餘的風險敞口以前總計 44 億美元，現在總計 41 億美元，包括在中央銀行的存款和現金、逆回購和跨境風險敞口。此外，我們對俄羅斯實體的淨投資現在約為 7 億美元，低於年底的約 10 億美元。與我們的淨投資相關的貨幣換算調整或 CTA 為 10 億美元。

And as I mentioned previously, we took credit reserves of about $1.9 billion, with about $1 billion for direct exposure to Russia and another approximately $900 million for broader impacts given the macro environment. So we feel we have reserved prudently at this point. In the normal course of our planning and risk management, we run a range of stress scenarios, and we've taken the same approach with our exposure to Russia. And as a result of the actions that we've taken to reduce our risk, we now believe that under a range of severe stress scenarios, our potential risk of loss is now estimated at approximately $2.5 billion to $3 billion, down meaningfully from what I described at our Investor Day.

正如我之前提到的，我們獲得了約 19 億美元的信貸儲備，其中約 10 億美元用於直接接觸俄羅斯，另外約 9 億美元用於宏觀環境的更廣泛影響。所以我們覺得我們在這一點上已經謹慎地保留了。在我們的計劃和風險管理的正常過程中，我們運行了一系列壓力情景，我們對俄羅斯的敞口採取了同樣的方法。由於我們為降低風險而採取的行動，我們現在認為，在一系列嚴重的壓力情景下，我們的潛在損失風險現在估計約為 25 億至 30 億美元，比我之前的預測顯著下降。在我們的投資者日描述。

On Slide 7, we show net interest income, loans and deposits. In the first quarter, net interest income increased by approximately $50 million on a sequential basis as interest income from loans as well as higher deposit spreads were partially offset by day count. Excluding day count, net interest income increased by approximately $290 million. Sequentially, net interest margin increased by 7 basis points as lower average deposits in Services and higher interest income from loans were partially offset by balance sheet growth in Markets. On a year-over-year basis, net interest income increased by approximately $370 million, driven by cards, deposits volumes and spreads as well as income from the investment portfolio, partially offset by lower net interest income in Markets, and we grew average loans by approximately 3% in both ICG and PBWM.

在幻燈片 7 中，我們顯示了淨利息收入、貸款和存款。第一季度，由於貸款利息收入和較高的存款利差被天數部分抵消，淨利息收入環比增長約 5000 萬美元。不計天數，淨利息收入增加了約 2.9 億美元。隨後，淨息差增加了 7 個基點，因為服務業平均存款的減少和貸款利息收入的增加被市場資產負債表的增長部分抵消。在信用卡、存款量和利差以及投資組合收入的推動下，淨利息收入同比增長了約 3.7 億美元，部分被市場淨利息收入下降所抵消，我們的平均貸款增長在 ICG 和 PBWM 中下降約 3%。

On Slide 8, we show our summary balance sheet and key capital and liquidity metrics. We maintained a very strong balance sheet. Of our $2.4 trillion balance sheet, about 23% or $551 billion are high-quality liquid assets, or HQLA, and we maintained total liquidity resources of approximately $960 billion. From a capital perspective, we ended the quarter with a CET1 capital ratio of approximately 11.4% under both standardized and advanced approaches, with standardized remaining the binding ratio, down from 12.2% at year-end.

在幻燈片 8 中，我們展示了我們的匯總資產負債表以及關鍵資本和流動性指標。我們保持了非常強勁的資產負債表。在我們 2.4 萬億美元的資產負債表中，約 23% 或 5,510 億美元是優質流動資產，即 HQLA，我們的總流動性資源保持在約 9,600 億美元。從資本角度來看，截至本季度末，我們在標準化和高級方法下的 CET1 資本比率約為 11.4%，標準化仍然是約束性比率，低於年底的 12.2%。

During the quarter, we adopted SACR and absorbed a significant impact from the sharp move in interest rates. We will go into more detail shortly on the drivers of capital in the quarter. However, it is important to note that despite these impacts, we continue to expect to manage to a CET1 ratio of 12% by the end of the year due to the expected GCIB surcharge increase to 3.5% at the beginning of 2023. We expect the combination of net income generation, DTA utilization and capital generated by the closing of several of the consumer exits in Asia to be sufficient to reach the 12% CET1 ratio by the end of the year.

在本季度，我們採用了 SACR 並吸收了利率大幅波動的重大影響。我們將很快詳細介紹本季度的資本驅動因素。然而，值得注意的是，儘管有這些影響，由於預計 GCIB 附加費在 2023 年初將增加到 3.5%，我們仍預計到今年年底 CET1 比率將達到 12%。我們預計淨收入、DTA 利用率和關閉亞洲幾個消費者出口所產生的資本相結合，足以在年底前達到 12% 的 CET1 比率。

As we said at Investor Day, we're committed to returning excess capital to our shareholders. And as we see a pull to par in the investment portfolio, reversing that $4 billion interest rate-driven impact, we would expect to be able to deploy that capital over time. And as you know, under the SCB framework and given the uncertain macro environment, we assess on a quarter-by-quarter basis the right level of buybacks, and we will continue to do so throughout the year. For the second quarter, we expect only a modest amount of buybacks, and we'll evaluate that level throughout the quarter, taking into account market conditions.

正如我們在投資者日所說的那樣，我們致力於將多餘的資本返還給我們的股東。隨著我們看到投資組合的拉動，扭轉了 40 億美元的利率驅動影響，我們預計能夠隨著時間的推移部署這些資本。如您所知，在 SCB 框架下並鑑於不確定的宏觀環境，我們會按季度評估適當的回購水平，我們將在全年繼續這樣做。對於第二季度，我們預計只有少量的回購，我們將在整個季度評估這一水平，同時考慮到市場狀況。

On Slide 9, we show a sequential CET1 capital ratio walk to provide more detail on the drivers this quarter. As I just mentioned, our CET1 capital ratio ended the year at 12.2% as we build capital to absorb the impact of SACR on our RWA. Post SACR adoption, our ratio stood at 11.8% as of January 1, 2022. Given the sizable impact of some of the drivers, I wanted to spend a minute to walk through the puts and takes this quarter and how we ended the quarter with a CET1 ratio of about 11.4%. First, we generated net income, which added 35 basis points. Second, over $4 billion of dividends and buybacks drove a reduction of about 36 basis points.

在幻燈片 9 中，我們展示了 CET1 資本比率的連續走勢，以提供有關本季度驅動因素的更多詳細信息。正如我剛才提到的，我們的 CET1 資本比率年底為 12.2%，因為我們建立資本以吸收 SACR 對我們 RWA 的影響。採用 SACR 後，截至 2022 年 1 月 1 日，我們的比率為 11.8%。鑑於一些驅動因素的巨大影響，我想花一分鐘時間了解一下本季度的看跌期權以及我們如何以CET1比例約為11.4%。首先，我們產生了淨收入，增加了 35 個基點。其次，超過 40 億美元的股息和回購導致減少了約 36 個基點。

Third, the interest rate impact on AOCI through our investment portfolio drove a 35-basis point reduction. Fourth, the increase in disallowed DTA, largely driven by the reduction in CET1 due to the interest rate impact I just mentioned, drove another 15-basis point reduction. Finally, the remainder was driven by a combination of other factors, including a reduction in RWA. With all of that said, as I just mentioned, we have a path to a 12% CET1 capital ratio by year-end and remain committed to returning excess capital to shareholders.

第三，通過我們的投資組合對 AOCI 的利率影響推動了 35 個基點的下降。第四，不允許的 DTA 增加，主要是由於我剛才提到的利率影響導致 CET1 的減少，推動了另一個 15 個基點的減少。最後，其餘部分是由其他因素共同推動的，包括風險加權資產的減少。綜上所述，正如我剛才提到的，我們有一條在年底前達到 12% 的 CET1 資本比率的道路，並繼續致力於向股東返還多餘的資本。

On Slide 10, we show the results for our Institutional Clients Group. Revenues decreased 2%, largely driven by Investment Banking partially offset by an increase in Services revenue. And Markets declined slightly against a strong quarter last year. Expenses increased 13% driven by transformation investments, business-led investments and volume-related expenses, partially offset by productivity savings. Cost of credit was nearly $1 billion, largely driven by a $1.5 billion build related to our exposures in Russia as well as the broader impact on the macro environment. And outside of Russia, we continue to see strong credit performance across our portfolio as clients' balance sheets remain healthy. This resulted in net income of $2.6 billion, down approximately 51%, largely driven by the higher expenses and an ACL build versus a release in the prior year. We grew average loans by 3%, largely driven by trade finance. Average deposits grew 2% as we continue to see good momentum and deepening of existing client relationships and new client acquisitions. And ICG delivered an RoTCE of 11.2%.

在幻燈片 10 上，我們展示了機構客戶組的結果。收入下降 2%，主要是投資銀行業務部分被服務收入的增長所抵消。與去年強勁的季度相比，市場略有下跌。在轉型投資、業務主導的投資和與數量相關的費用的推動下，費用增長了 13%，但部分被生產力節省所抵消。信貸成本接近 10 億美元，主要是由於與我們在俄羅斯的風險敞口相關的 15 億美元增長以及對宏觀環境的更廣泛影響。在俄羅斯以外，我們繼續看到我們投資組合的強勁信貸表現，因為客戶的資產負債表保持健康。這導致淨收入為 26 億美元，下降約 51%，主要是由於較高的費用和 ACL 的構建與上一年的發布相比。我們的平均貸款增長了 3%，主要受貿易融資的推動。平均存款增長 2%，因為我們繼續看到良好的勢頭以及現有客戶關係的深化和新客戶的獲取。 ICG 的 RoTCE 為 11.2%。

On Slide 11, we show revenue performance by business and the key drivers we laid out at Investor Day, which we will continue to show you each quarter. In Services, we continue to see a very strong new client pipeline and a deepening with our existing clients, and we expect that momentum to continue. In Treasury and Trade Solutions, revenues were up 18%, driven by growth in net interest income as well as strong fee growth with both commercial and large corporate clients. And we continue to see strong underlying drivers in TTS that indicate continued strong client activity with U.S. dollar clearing volumes up 2%, cross-border flows up 17% and commercial card volumes up 54%. Again, these metrics are indicators of client activity and fees, and on a combined basis, drive approximately 50% of total TTS fee revenue.

在幻燈片 11 上，我們按業務顯示收入表現以及我們在投資者日列出的主要驅動因素，我們將在每個季度繼續向您展示。在服務方面，我們繼續看到非常強大的新客戶渠道以及與現有客戶的深化，我們預計這種勢頭將繼續下去。在資金和貿易解決方案方面，收入增長了 18%，這得益於淨利息收入的增長以及商業和大型企業客戶的強勁費用增長。我們繼續看到 TTS 強勁的潛在驅動因素表明客戶活動持續強勁，美元清算量增長 2%，跨境流動增長 17%，商業卡交易量增長 54%。同樣，這些指標是客戶活動和費用的指標，綜合起來，約佔 TTS 費用總收入的 50%。

Securities Services revenues grew 6% as net interest income grew 17%, driven by higher interest rates across currencies, and fee revenues grew 2% due to higher assets under custody. Overall Markets revenues were down 2% versus a strong quarter last year. In the quarter, activity levels benefited from client repositioning and strong risk management in light of Fed actions and overall geopolitical uncertainty. Fixed Income Markets revenues were down 1%. We saw strong client engagement, particularly with our corporate clients in FX and commodities, with our rates business also benefiting from higher volatility. Spread products were negatively impacted by less client activity.

證券服務收入增長 6%，淨利息收入增長 17%，主要受各幣種利率上升的推動，而手續費收入增長 2% 是由於託管資產增加。與去年強勁的季度相比，整體市場收入下降了 2%。鑑於美聯儲的行動和整體地緣政治的不確定性，本季度的活動水平受益於客戶重新定位和強有力的風險管理。固定收益市場收入下降 1%。我們看到了強大的客戶參與度，尤其是我們在外彙和大宗商品領域的企業客戶，我們的利率業務也受益於更高的波動性。點差產品受到客戶活動減少的負面影響。

Equity Markets revenues were down 4% compared to a very strong prior year period. In the quarter, we saw strong equity derivatives performance and grew prime finance balances. Banking revenues, excluding gains or losses on loan hedges, were down 32% as heightened geopolitical uncertainty and the overall macro backdrop impacted activity in debt and equity capital markets. Investment Banking revenues were down 43% and driven by the contraction in capital markets activity, partially offset by growth in M&A. Corporate Lending revenues were down 6%, largely driven by lower average loans.

與非常強勁的去年同期相比，股票市場收入下降了 4%。在本季度，我們看到了強勁的股票衍生品表現並增加了主要金融餘額。由於地緣政治不確定性加劇以及整體宏觀背景影響債務和股票資本市場的活動，銀行收入（不包括貸款對沖收益或損失）下降了 32%。投資銀行業務收入下降了 43%，主要是由於資本市場活動的收縮，部分被併購的增長所抵消。企業貸款收入下降 6%，主要是由於平均貸款減少。

Now turning to Slide 12. We show the results for our Personal Banking and Wealth Management business. Revenues declined 1% as net interest income was more than offset by lower noninterest revenue. Expenses were up 14%, driven by transformation investments, business-led investments and higher volume-driven expenses, partially offset by productivity savings. Cost of credit was a $376 million benefit as an ACL release more than offset net credit losses. We had a net release of over $1 billion of ACL related to COVID-19 uncertainty reserves. I would note that even after this release, we maintained over $9.8 billion in credit reserves against our U.S. Cards portfolios or approximately 7.6% of total loans. This resulted in a net income decline of 23% and an RoTCE of just over 23%. Adjusting for the ACL release, RoTCE would have been approximately 13%.

現在轉到幻燈片 12。我們展示了我們的個人銀行和財富管理業務的結果。由於淨利息收入被較低的非利息收入所抵消，收入下降了 1%。費用增長 14%，主要是轉型投資、業務主導的投資和更高的數量驅動費用，部分被生產力節省所抵消。信貸成本是 3.76 億美元的收益，因為 ACL 釋放超過了淨信貸損失。我們淨釋放了超過 10 億美元的與 COVID-19 不確定性儲備相關的 ACL。我要指出的是，即使在此版本發布之後，我們的美國卡投資組合仍維持著超過 98 億美元的信用準備金，約佔總貸款的 7.6%。這導致淨收入下降 23%，RoTCE 略高於 23%。調整 ACL 版本後，RoTCE 約為 13%。

On Slide 13, we show PBWM revenues by product as well as key business drivers and metrics. Credit cards revenues declined 1% on higher average payment rates and higher acquisition and rewards costs as we continue to see attractive investment opportunities and strong customer engagement. We are seeing encouraging underlying drivers with new accounts up 24%, card spend volumes also up 24% and average loans up 7%. Retail Services revenues were flat as higher net interest income was offset by higher partner payments, driven by improved credit performance. And we are seeing positive underlying drivers with spend up 14% and average loans up 1%.

在幻燈片 13 上，我們按產品以及關鍵業務驅動因素和指標顯示 PBWM 收入。由於我們繼續看到有吸引力的投資機會和強大的客戶參與度，信用卡收入下降了 1%，原因是平均支付率上升以及獲取和獎勵成本上升。我們看到令人鼓舞的潛在驅動因素，新賬戶增長了 24%，卡消費量也增長了 24%，平均貸款增長了 7%。零售服務收入持平，因為較高的淨利息收入被較高的合作夥伴付款所抵消，這是由信貸業績改善推動的。我們看到積極的潛在驅動因素，支出增長 14%，平均貸款增長 1%。

While payment rates remain elevated, we believe we have finally begun to see some normalization. As a result, interest earning balances in Branded Cards were relatively flat on a sequential basis, while Retail Services grew interest-earning balances by 3% sequentially despite seasonally lower card spending volumes. Retail Banking revenues declined 6%, largely driven by lower mortgage originations. Wealth revenues declined 1%, driven by less client activity and investments, partially offset by higher deposits. Investment revenues declined as geopolitical tensions impacted the capital markets, which resulted in clients pulling back their trading activity, particularly in Asia. However, underlying drivers remain strong, with average deposits up 14%, average loans up 5%, client assets up 4% and client advisers up 6%.

雖然支付率仍然很高，但我們相信我們終於開始看到一些正常化。因此，品牌卡的生息餘額環比持平，而零售服務的生息餘額環比增長 3%，儘管卡消費量季節性下降。零售銀行業務收入下降 6%，主要是由於抵押貸款的減少。由於客戶活動和投資減少，財富收入下降了 1%，部分被存款增加所抵消。由於地緣政治緊張局勢影響資本市場，投資收入下降，導致客戶撤出交易活動，尤其是在亞洲。然而，潛在驅動因素依然強勁，平均存款增長 14%，平均貸款增長 5%，客戶資產增長 4%，客戶顧問增長 6%。

On Slide 14, we show results for the legacy franchises. Revenues declined 14%, driven by lower revenue across the exit markets, largely driven by the Korea wind down as well as the muted investment activity in Asia. Expenses were up 31%, largely driven by the goodwill impairment I mentioned earlier, but again, this is neutral to capital. Cost of credit was $160 million in the quarter, driven by net credit losses, and as a result, net income declined significantly.

在幻燈片 14 上，我們展示了傳統特許經營的結果。收入下降 14%，主要是由於韓國退出市場以及亞洲投資活動低迷導致的退出市場收入下降。費用增長了 31%，主要是由於我之前提到的商譽減值，但這對資本來說是中性的。在淨信貸損失的推動下，本季度的信貸成本為 1.6 億美元，因此淨收入顯著下降。

On Slide 15, we show results for Corporate/Other. Revenues increased significantly, largely driven by higher net revenue from the investment portfolio. Expenses are down largely on lower compensation expenses.

在幻燈片 15 上，我們展示了企業/其他的結果。收入顯著增加，主要受投資組合淨收入增加的推動。費用下降主要是由於較低的補償費用。

And to briefly touch on the full year 2022 outlook, at this point, we still expect to see low single-digit revenue growth and mid-single-digit expense growth, both excluding divestiture-related impacts this year.

簡要介紹一下 2022 年全年的前景，在這一點上，我們仍然預計收入將出現低個位數增長和中個位數的支出增長，這兩者均不包括今年與資產剝離相關的影響。

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

有了這個，簡和我很樂意回答你的問題。

(Operator Instructions) Our first question is from Glenn Schorr with Evercore.

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

Okay. So when I first looked at the reserve release, even including the $1.9 million Russian reserve, we're like, wait, what economic scenario are they writing to because everybody else added provisions. But now that you've given us some of the color, I start to understand it. So it feels to me, and correct me if I'm wrong, you just were slower to release the COVID reserves, and it sounds like you still have a lot in the coffers with that 7.6% that you mentioned. So I just want to see if you can give a little more color between what you took reserves [score], what you released reserves for? And if you tweaked your economic scenarios at all to get to the current reserve, if that's not too much to ask?

好的。因此，當我第一次查看儲備金釋放時，甚至包括 190 萬美元的俄羅斯儲備金，我們就像，等等，他們寫信給什麼樣的經濟情景，因為其他人都添加了準備金。但是現在你已經給了我們一些顏色，我開始理解它。所以對我來說，如果我錯了，請糾正我，你釋放 COVID 儲備的速度較慢，聽起來你提到的那 7.6% 的金庫還有很多。所以我只是想看看你是否可以在你的準備金[分數]和你釋放的準備金之間多一點顏色？如果你完全調整你的經濟情景以達到目前的儲備，如果這不是太多要求嗎？

Glenn, [where do] I kick off and I'll pass it to Mark. So you are absolutely right. We had taken a rather conservative approach to releasing our COVID-related reserves in the U.S. Personal Banking business last year compared to some. We were comfortable that this quarter, that was the appropriate thing to do given the state of COVID and the U.S. economy. And with -- as you can see from the numbers, with a 2.35% ACL coverage ratio and with the ratio that we have in cards, 7.6% in particular, I'm very comfortable that we have a prudent and appropriate reserve level. But let me hand it over to Mark for the down and the dirty.

格倫，[在哪裡] 我開始了，我會把它傳給馬克。所以你是絕對正確的。與某些情況相比，我們去年在美國個人銀行業務中釋放與 COVID 相關的儲備金時採取了相當保守的方法。鑑於 COVID 和美國經濟的狀況，本季度我們感到很放心，這是合適的做法。從數字中可以看出，ACL 覆蓋率為 2.35%，我們在卡片中的比率，特別是 7.6%，我很滿意我們有一個謹慎和適當的儲備水平。但是讓我把它交給馬克，因為它是羽絨和骯髒的。

Glenn, I think you captured it right in the sense we obviously did a build, a meaningful build related to Russia, the majority of the release was, in fact, tied to the COVID-19 management adjustment that Jane referenced. As we thought about these scenarios, as you know, we run a base scenario. We did tweak that a bit in bringing the GDP assumptions down from what they would have been in the fourth quarter, and that obviously also impacted kind of the outer years in our assumption. And the other piece is, when we look at the downside scenario, so our analysis for CECL is a combination of a base scenario and a downside scenario. Under the downside scenario, we did increase the severity of the downside to account for again a bit of the current environment that we're all managing through. So those puts and takes kind of netted out to what you see that we've reported, which is a net release, but largely driven by those 2 drivers.

格倫，我認為你抓住了它，因為我們顯然做了一個構建，一個與俄羅斯相關的有意義的構建，事實上，大部分發布都與 Jane 提到的 COVID-19 管理調整有關。如您所知，當我們考慮這些場景時，我們會運行一個基本場景。我們確實做了一些調整，將 GDP 假設從第四季度的水平下調，這顯然也影響了我們假設的外部年份。另一部分是，當我們看到下行情景時，我們對 CECL 的分析是基礎情景和下行情景的組合。在不利的情況下，我們確實增加了不利的嚴重性，以再次說明我們都在管理的當前環境。因此，這些看跌期權與您所看到的我們所報導的內容有所關聯，這是一個淨發布，但主要由這兩個驅動程序驅動。

And I'd just add in, as Mark talked about in his prepared remarks, we took an additional reserve of $900 million for the second and third order impacts of the war and the impacts on supply chains and other pieces that are as we look forward, we were concerned about for the global economy. It's a huge source of uncertainty as to what that will be.

我想補充一下，正如馬克在他準備好的講話中所說，我們為戰爭的二級和三級影響以及對供應鍊和我們期待的其他方面的影響額外準備了 9 億美元，我們為全球經濟擔憂。這將是一個巨大的不確定性來源。

Yes. That's part of the $1.9 billion, obviously. I would point out that when you look through at the underlying performance of the portfolio, they're still holding up quite nicely when you look at the performance of our consumer customers, whether you're looking at the NCL rate and where that's trending, or you look at the 90-day delinquency and where that's trending still very strong. Even when you look on the corporate side, if you adjust for the Russia-related build and those drove a bit of the NAL increase, but still very strong performance there, too.

是的。顯然，這是 19 億美元的一部分。我要指出的是，當您查看投資組合的基本表現時，當您查看我們的消費者客戶的表現時，無論您是在查看 NCL 利率以及趨勢，它們仍然保持相當不錯，或者你看看 90 天的拖欠率，並且趨勢仍然非常強勁。即使你從企業方面看，如果你調整了與俄羅斯相關的構建，那些推動了 NAL 增長的一些因素，但那裡的表現仍然非常強勁。

Your next question comes from Erika Najarian with UBS.

您的下一個問題來自瑞銀的 Erika Najarian。

I just wanted to ask you a question, Jane and Mark on CET1. And wanted to make sure we get -- your investors get the message correctly. So from the 11.4%, you said that net income capital release from divestitures and DTA utilization are going to be the drivers to build a 12% CET1 by year-end 2021. Obviously, AOCI is a wildcard, unpredictable. Perhaps give us a sense of should we then think about the buyback as just a fallout in terms of that equation, right, is the first question. Number two, what is the desire to increase the dividend even nominally in this stress test year? And third, how does the DTA impact that was negative in the first quarter turned to a positive impact? And Mark, nice job on the RWA. I think that everybody was scared if that was going to be a big negative number this quarter.

我只是想問你一個問題，簡和馬克在 CET1 上。並希望確保我們得到——你的投資者正確地得到信息。因此，從 11.4% 開始，您說資產剝離和 DTA 利用率帶來的淨收入資本釋放將成為到 2021 年底建立 12% CET1 的驅動力。顯然，AOCI 是一個不可預測的通配符。也許給我們一種感覺，然後我們是否應該將回購視為該等式的後果，對，這是第一個問題。第二，在這個壓力測試年，名義上增加股息的願望是什麼？第三，第一季度負面的DTA影響如何轉變為正面影響？還有馬克，在 RWA 上做得很好。我認為如果本季度這將是一個很大的負數，每個人都會感到害怕。

Thank you. You got a lot there, that we've got to unpack. So I'll try to capture it all and you'll point to whatever I may miss. But let's start with the beginning of your question, just kind of the 12% and how we build back up to the 12%. So we ended the quarter at an estimated 11.4% to get to the 12%, that would be somewhere between $7 billion and $8 billion of capital that will be required. Jane mentioned, I mentioned there are a number of puts and takes that play through that. You pointed out a few of them. So you all have estimates for our net income between the second and fourth quarter. So you can forecast that what that would be. There's probably another $1.6-or-so billion of a benefit from the DTA. So what I mean by that, there's the $800 million that I've referenced in the past of utilization of the DTA. And the balance would be the elimination of the amount that we tripped above the threshold this quarter. So there are 2 components that carry forwards that impact the DTA.

謝謝你。你有很多東西，我們必須打開包裝。所以我會盡力捕捉到這一切，你會指出我可能錯過的任何東西。但是，讓我們從你的問題開始，只是 12% 以及我們如何建立到 12%。因此，我們在本季度末估計為 11.4% 以達到 12%，這將需要 70 億美元到 80 億美元的資本。簡提到，我提到有很多看跌期權並通過它進行遊戲。你指出了其中的一些。所以你們都估計了我們第二季度和第四季度的淨收入。所以你可以預測那會是什麼。 DTA 可能還有另外 1.6 億美元左右的收益。所以我的意思是，我在過去提到過使用 DTA 的 8 億美元。餘額將是消除我們本季度超出閾值的金額。因此，有 2 個組件會影響 DTA。

And then there's the timing difference, which has equated to about 10% of our capital. So this quarter, we actually tripped that timing difference portion of the disallowed DTA, in part because of how the OCI reduction play through. So as that bleeds back in over time, we would expect to have capital buildup, which increases that threshold and therefore, be able to back off the increase that we saw in the quarter related to the DTA.

然後是時間差異，這相當於我們資本的大約 10%。因此，本季度，我們實際上取消了不允許的 DTA 的時間差部分，部分原因是 OCI 減少如何發揮作用。因此，隨著時間的流逝，我們預計會有資本積累，這會提高門檻，因此能夠抵消我們在本季度看到的與 DTA 相關的增長。

The third component would be the capital from exits. So you didn't mention that one. As you know, there are a number of exits that we're looking to close at the end of the year -- by the end of the year, they'll contribute about $4 billion of capital to that equation. And then there's the bleeding back in of the OCI impact, which will give or take, give us another $1 billion. So those are the pluses. Those are the things that kind of play in on the capital generation side.

第三個組成部分是退出的資本。所以你沒有提到那個。如您所知，我們希望在今年年底關閉一些退出 - 到今年年底，他們將為該等式貢獻約 40 億美元的資本。然後是 OCI 影響的回血，這將給或再給我們 10 億美元。所以這些是優點。這些都是在資本一代方面發揮作用的東西。

And then on the offsets, you've got preferred dividends, you've got common dividends, whatever growth we play out or put to work from an RWA point of view, and that leaves the balance for share repurchases. As I mentioned in my prepared remarks, we would expect in the second quarter, a modest level of buybacks in light of all of those puts and takes. The good news is that the headwinds that we've talked about, all things being equal, so assuming no further rate changes, many of those headwinds bleed back in over time, allowing for us to do what we've committed to, which is returning capital to shareholders over time.

然後在抵消方面，你有優先股息，你有普通股息，無論從 RWA 的角度來看，無論我們發揮或發揮什麼作用，這都會為股票回購留下餘額。正如我在準備好的講話中提到的那樣，鑑於所有這些看跌期權，我們預計第二季度會有適度的回購。好消息是，我們談到的不利因素，在所有條件相同的情況下，因此假設利率沒有進一步變化，隨著時間的推移，許多不利因素會流回來，使我們能夠做我們承諾的事情，即隨著時間的推移向股東返還資本。

In terms of dividends, we always look at that as part of the CCAR submission and part of our broader capital planning, but I'll -- we'll see how the results come out from CCAR, but I would lean in on a point we've had to make a number of times now, which is given where we're trading, it makes a lot of sense to be doing buybacks. And so we'll likely continue to lean that way as opposed to doing a lot to change the dividend. But stay tuned as the capital planning continues to evolve.

在股息方面，我們總是將其視為 CCAR 提交的一部分和我們更廣泛的資本規劃的一部分，但我會 - 我們會看看 CCAR 的結果如何，但我會傾向於一個觀點我們現在不得不做很多次，考慮到我們在哪裡交易，進行回購很有意義。因此，我們可能會繼續以這種方式傾斜，而不是做很多事情來改變股息。但隨著資本規劃的不斷發展，請繼續關注。

And your next question comes from Mike Mayo with Wells Fargo.

您的下一個問題來自富國銀行的 Mike Mayo。

Could you talk some about Treasury and Trade Solutions, both at the first quarter level. I guess, Securities Services did better. What you're seeing is a combination of rates and more corporate demand and the complexity around the global situation? And then just more generally, the joint calling efforts you guys are doing with lending and payments, so specific to the general.

您能否談談第一季度的財政和貿易解決方案。我想，證券服務做得更好。您看到的是利率和更多企業需求以及全球形勢的複雜性的結合？然後更一般地說，你們在貸款和支付方面所做的聯合呼籲努力，所以具體到將軍。

Well, maybe I'll kick off with a couple of pieces and then hand it over to Mark. I think what we've seen, frankly, Mike, across the board this quarter has been the value of our global network that we talked about, be it in Markets, we had a lot of strong corporate activity and FX, that we saw tremendous activity for TTS, great with our commercial banking clients, and we saw a lot of linkages across. And obviously, it was a strong quarter for us in trade because again, with the global network, the ability to provide clients with end-to-end solutions in this interesting world that we're living in is something they really rely upon us. So you saw trade loans up 16%. You saw really many of the drivers that we laid out for you at Investor Day performing particularly strongly. But Mark, why don't I pass to you?

好吧，也許我會從幾塊開始，然後把它交給馬克。坦率地說，邁克，我認為我們在本季度全面看到的是我們所談論的全球網絡的價值，無論是在市場方面，我們都有很多強勁的企業活動和外匯，我們看到了巨大的TTS 的活動，非常適合我們的商業銀行客戶，我們看到了很多聯繫。顯然，這對我們來說是一個強勁的貿易季度，因為藉助全球網絡，在我們生活的這個有趣的世界中為客戶提供端到端解決方案的能力是他們真正依賴我們的東西。所以你看到貿易貸款增長了 16%。您確實看到我們在投資者日為您列出的許多驅動因素表現特別強勁。但是馬克，我為什麼不傳給你呢？

Yes. I'd make a couple of comments. So one, I'd point out that, again, we had a strong quarter in TTS. The revenues were up 18% versus the prior quarter up -- that was year-over-year versus the prior quarter up 8%. And yes, some of that was due to rates playing through. So net interest income was up 18%. But look at the noninterest revenue, that was up 19%. So to your point, Jane, we're seeing good fee revenue growth play through as well. Securities Services had a good quarter. It was up 6% revenue year-over-year and part of that was through fee revenue growth as well. So as you said, good, strong engagement with clients and helping them think through some of the uncertainty that's out here, particularly as it relates to supply chains, helping them work through with their partners through the trade lending growth that we're seeing and making good headway with the commercial client offering as well. So I would say a very good quarter -- a very strong quarter for TTS, and we expect that momentum to continue.

是的。我會發表一些評論。因此，我要再次指出，我們在 TTS 的季度表現強勁。與上一季度相比，收入增長了 18%——與上一季度相比，同比增長 8%。是的，其中一些是由於利率發揮作用。因此，淨利息收入增長了 18%。但看看非利息收入，增長了 19%。因此，簡而言之，我們也看到了良好的費用收入增長。證券服務有一個不錯的季度。它的收入同比增長 6%，其中部分原因是費用收入的增長。因此，正如您所說，與客戶進行良好、強有力的接觸，並幫助他們思考這裡存在的一些不確定性，特別是與供應鏈有關的不確定性，幫助他們通過我們所看到的貿易貸款增長與合作夥伴一起工作，在商業客戶產品方面也取得了良好的進展。所以我想說一個非常好的季度——TTS 的一個非常強勁的季度，我們預計這種勢頭將繼續下去。

And to your question about sort of joint calling effort, we're quite making sure that we're forensically managing the synergies that we talked about cross calling efforts. And I think Paco and I are both pleased with how those are going. And this quarter was an example of that.

對於你關於聯合調用工作的問題，我們非常確保我們在法證上管理我們談到的交叉調用工作的協同作用。我認為帕科和我都對這些進展感到滿意。本季度就是一個例子。

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

您的下一個問題來自德意志銀行的 Matt O'Connor。

I was hoping to follow-up on the Russian slide here, update on Russia in Slide 6. I guess first question, why don't you take just a bigger kind of stab at reserving for maybe the severe stress scenario? I'm not really an expert on what's going on. But from what I read, it feels kind of pretty severe and it seems like broadly speaking, kind of other corporations, not necessarily banks, but just corporations are taking kind of more material losses versus a $1 billion on $10 billion? And then just a related question, if you could elaborate on what the broader impact is? I guess I'm a little surprised that the reserve for that was as big as the direct Russian reserve were roughly the same.

我希望在這裡跟進俄羅斯幻燈片，在幻燈片 6 中更新俄羅斯。我想第一個問題，你為什麼不採取更大的措施來為可能出現的嚴重壓力情況做好準備？對於正在發生的事情，我並不是真正的專家。但從我讀到的內容來看，這感覺有點嚴重，而且從廣義上講，其他公司，不一定是銀行，但只是公司正在承受更多的物質損失，而不是 100 億美元的 10 億美元？然後只是一個相關的問題，如果你能詳細說明更廣泛的影響是什麼？我想我有點驚訝，因為它的儲備與俄羅斯的直接儲備大致相同。

Sure. Why don't I take that? So the first thing I'd say is that we're not at $10 billion, right? So we ended the year last year, 2021 at $9.8 billion. We ended the quarter at $7.8 billion of exposure. So we brought the exposure down by $2 billion inside of the last 3 months. I'd also point out that a number of things were important components of that. So if you look at Slide 6, you'll see that the loans, and these are both ICG and consumer loans, largely ICG, largely corporate loans have come down by $600 million. And that's really been a reduction in our risk exposure, right? So borrowers paying down, us limiting the extension of new credit, et cetera. The AFS securities have come down $600 million. And that is really a reduction mostly driven by sales. So we've gotten out of those securities.

當然。我為什麼不拿那個？所以我要說的第一件事是我們沒有100億美元，對吧？因此，我們在去年 2021 年以 98 億美元結束了這一年。我們在本季度末的敞口為 78 億美元。因此，我們在過去 3 個月內將風險敞口降低了 20 億美元。我還要指出，許多事情是其中的重要組成部分。因此，如果您查看幻燈片 6，您會看到貸款，包括 ICG 和消費貸款，主要是 ICG，主要是公司貸款，減少了 6 億美元。這確實降低了我們的風險敞口，對嗎？所以藉款人還款，我們限制新信貸的擴展，等等。 AFS 證券已下跌 6 億美元。這實際上是主要由銷售驅動的減少。所以我們已經擺脫了這些證券。

Yes, there are some mark-to-market losses, but they're not material. That flows through OCI, not material. You can see that the off-balance sheet unfunded commitments have trended down as well. Deposits and cash equivalents have gone up because we've actually seen the repayment of those loans come back, and we've been -- we've had to put that cash with the Central Bank just given some of the restrictions that are there. We've been actively working down the reverse repo assets, which are really secured with sovereign bond exposure. And we've been bringing down the third-party cross-border exposure. So a lot of hard work has gone into bringing that exposure down to $7.8 billion. And if you think about the $1 billion that I referenced is kind of a net of $6.8 billion, right?

是的，有一些按市值計價的損失，但並不重要。這流經OCI，而不是物質。您可以看到，表外無資金承諾也呈下降趨勢。存款和現金等價物增加了，因為我們實際上已經看到這些貸款的償還回來了，而且我們一直 - 我們不得不將這些現金存入中央銀行，只是考慮到那裡的一些限制。我們一直在積極處理反向回購資產，這些資產確實以主權債券敞口為擔保。我們一直在降低第三方跨境風險。因此，為了將風險敞口降至 78 億美元，我們付出了很多努力。如果你想想我提到的 10 億美元是 68 億美元的淨值，對吧？

So the second part of your question was, how do we think about reserves and what are those different components. Well, we look at the reserves in terms of the actual name-specific loan exposure we have, how we're rating those entities in this environment. And then we actually run that through our models, and we come up with an appropriate reserve tied to that rating. So that $1 billion is related to the direct exposure that we have to these Russian clients and entities, the broader impact takes into consideration the spillover effect that might impact other names or other industries outside of Russia due to things like commodity pricing and what have you. And then there's a third component that is tied to the global uncertainty that gets created from a dynamic like this. So we built the reserves considering those multiple components.

所以你問題的第二部分是，我們如何看待儲備以及這些不同的組成部分是什麼。好吧，我們根據我們擁有的實際特定名稱的貸款風險，以及我們在這種環境下如何對這些實體進行評級來查看準備金。然後我們實際上通過我們的模型運行它，我們提出了與該評級相關的適當儲備。因此，這 10 億美元與我們對這些俄羅斯客戶和實體的直接風險敞口有關，更廣泛的影響考慮到了可能影響俄羅斯以外其他名稱或其他行業的溢出效應，例如商品定價和您擁有什麼.然後還有第三個組成部分，它與從這樣的動態中產生的全球不確定性有關。因此，我們考慮了這些多個組成部分來建立儲備。

The last point I'd make is that, when you look at some of the names, there are a significant number of names that are large multinational names that have this exposure in the country, and they provide parental support for some of the exposure that's here as well. So we really try to take a detailed comprehensive look at this and build the reserves in a way that we think are prudent recognizing that there are other scenarios that could play out that we want to be prepared for and have a view on as well.

我要說的最後一點是，當您查看其中一些名稱時，有大量跨國公司的名稱在該國具有這種曝光度，並且它們為某些曝光度提供了父母支持這裡也是。因此，我們真的試圖對此進行詳細的全面研究，並以我們認為謹慎的方式建立儲備，認識到還有其他可能出現的情況，我們也希望做好準備並對此有看法。

Our next question comes from Gerard Cassidy with RBC Capital Markets.

我們的下一個問題來自加拿大皇家銀行資本市場的 Gerard Cassidy。

Mark, you did a good job in describing the CET1 ratio walk for us. What's new that none of us have experienced yet on an ongoing basis. Is the SACR, the 49 basis points that reduced your CET1 ratio. Can you share with us how does that work on an ongoing basis? Is that a number that's going to stay constant? Or does that change every quarter based upon increase or lower risk in this area?

馬克，你很好地為我們描述了 CET1 比率步行。我們都沒有持續經歷過的新事物。是 SACR，降低您的 CET1 比率的 49 個基點。您能與我們分享一下它是如何持續運作的嗎？這是一個會保持不變的數字嗎？還是每季度都會根據該領域的風險增加或降低而改變？

It's an increase in our risk-weighted assets that's really tied largely to the derivative exposures that we have. What I'd say is, obviously, how one manages their exposures and balance sheet and engagement with clients will impact that. But importantly, it's a market dynamic that needs to play out as well. So as more RWA and capital is required for these types of positions, there has to -- it's going to impact returns, and it ultimately will impact pricing as the market starts to incorporate this now higher requirement. And so it will continue to evolve.

這是我們風險加權資產的增加，這在很大程度上與我們擁有的衍生品敞口相關。我要說的是，顯然，一個人如何管理他們的風險敞口和資產負債表以及與客戶的接觸會影響到這一點。但重要的是，這也是一個需要發揮作用的市場動態。因此，隨著這些類型的頭寸需要更多的風險加權資產和資本，這將影響回報，並且隨著市場開始納入現在更高的要求，最終將影響定價。因此，它將繼續發展。

The thing I'd point you to is that as we think about managing our businesses and in particular Markets. You would have heard us mention at Investor Day that we're looking -- continually looking for opportunities to optimize the balance sheet and optimize RWA, right? And so we talked about targeting a revenue to RWA for our Markets business, and we're actively working at that now. And that's going to be important as we continue to manage not only the balance sheet requirements that we have, but our intent to try and return more capital to shareholders and improve our returns.

我要指出的是，當我們考慮管理我們的業務，特別是市場時。您會在投資者日聽到我們提到我們正在尋找——不斷尋找優化資產負債表和優化 RWA 的機會，對嗎？因此，我們談到了針對我們的市場業務的 RWA 收入目標，我們現在正在積極努力。這將很重要，因為我們不僅要繼續管理我們擁有的資產負債表要求，而且還要努力向股東返還更多資本並提高我們的回報。

Your next question comes from Ebrahim Poonawala with Bank of America.

您的下一個問題來自美國銀行的 Ebrahim Poonawala。

Just sticking with capital, 2-part question. One, if rates continued to move higher, Mark, is there anything you can do to hedge the AOCI? And secondly, if you can walk us through around Banamex, if you do strike a deal at some point this year, what are the implications on capital at deal announcement versus deal close? Would appreciate that.

只是堅持資本，兩部分的問題。一，如果利率繼續走高，馬克，你能做些什麼來對沖AOCI嗎？其次，如果你能帶我們了解一下 Banamex，如果你在今年某個時候達成交易，那麼在交易宣布和交易結束時對資本有何影響？將不勝感激。

Sure. So look, I mean there -- what we've built in -- what we've got built into the forecast and the walk back to 12% is the forward curve as of the end of the quarter. So that's what we've built in. As we think about that, that was a pretty sudden move through the quarter of 160 basis points on the 2-year in the quarter. That's now in the expectation. We have built in an assumption around more rate moves that could happen just as a bit of cushion as I think about the outlook and as I think about the walk. We do have hedges in place as it relates to some of the positions that we have and as it relates to OCI, and we'll continue to manage that to ensure we reduce the risk from rate increases, which, by the way, we've been actively doing over the past couple of years.

當然。所以看，我的意思是——我們已經建立的——我們已經建立在預測中並且回到 12% 是截至本季度末的遠期曲線。所以這就是我們所建立的。當我們考慮到這一點時，這是一個相當突然的舉動，在本季度的 2 年季度中通過了 160 個基點的季度。這就是現在的預期。我們已經建立了一個關於更多利率變動的假設，就像我對前景和步行的看法一樣，這些變動可能會發生一點緩衝。我們確實有對沖，因為它與我們擁有的一些頭寸以及與 OCI 相關，我們將繼續管理這一點，以確保我們降低加息帶來的風險，順便說一下，我們在過去的幾年裡一直在積極地做。

If you look at kind of how the balance sheet has evolved, we've been moving from out of AFS and into held to maturity over the past couple of years, reducing that risk of a negative impact to OCI. And if you look at the [DVO1], we've cut that down from as high as $60 million to about $30 million or so. So we've been actively managing with an eye towards how do we reduce that sensitivity, if you will. Why don't I let Jane kind of touch on the Mexico piece?

如果你看看資產負債表是如何演變的，在過去的幾年裡，我們一直在從 AFS 轉向持有至到期，從而降低了對 OCI 產生負面影響的風險。如果您查看 [DVO1]，我們已將其從高達 6000 萬美元降至約 3000 萬美元左右。因此，如果您願意，我們一直在積極管理如何降低這種敏感性。為什麼我不讓簡稍微接觸一下墨西哥片？

Yes. So as I said, it's quite a complex separation and transaction as we're going to be separating our market-leading, and sizable ICG franchise in Mexico from the consumer and the small business that we'll be selling. It will take a bit of time as we work through this. It's a fantastic franchise. And as we are starting some very preliminary conversations with the buyers, it's attracting a lot of attention. Because it is a once-in-a-lifetime opportunity here, and we have a range of options, I'm sure, ahead from IPO sale, et cetera. But this is going to take time. We want to do it properly. And by time, I mean a few quarters. So I think we're not anticipating at this very early stage, whether that would be this year or early next year. But Mark, why don't I pass to you in terms of how we look at the CTA impact of that one?

是的。所以正如我所說，這是一個相當複雜的分離和交易，因為我們將把我們在墨西哥市場領先且規模可觀的 ICG 特許經營權與我們將出售的消費者和小型企業分開。我們需要一些時間來解決這個問題。這是一個很棒的特許經營權。當我們開始與買家進行一些非常初步的對話時，它吸引了很多關注。因為這是千載難逢的機會，而且我敢肯定，在首次公開募股等之前，我們有多種選擇。但這需要時間。我們想正確地做到這一點。時間，我的意思是幾個季度。所以我認為我們不會在這個非常早的階段進行預期，無論是今年還是明年年初。但是馬克，我為什麼不告訴你我們如何看待那個 CTA 的影響？

Yes. So look, I mean, as you said, Jane, what's going to be important is that we make the right decision for the people, for the business and equally important for our shareholders, and we're going to absolutely make sure we do that. In terms of the way this plays out is I think you're aware and I've mentioned before that we've got roughly $2.8 billion, $2.9 billion currency translation adjustment related to our consumer Mexico franchise. And so when we sign the deal, we will have that flow through the P&L. It ultimately gets offset at closing. And so again, you'd have another timing difference between the accounting impact and the ultimate economic impact, but that's kind of the component that would play through at signing whenever that were to occur.

是的。所以看，我的意思是，正如你所說，簡，重要的是我們為人民、為企業做出正確的決定，對我們的股東同樣重要，我們將絕對確保我們這樣做.就結果而言，我想你已經知道並且我之前提到過，我們有大約 28 億美元，29 億美元的貨幣換算調整與我們的消費者墨西哥特許經營權有關。因此，當我們簽署交易時，我們將通過損益表進行流動。它最終在收盤時被抵消。同樣，您在會計影響和最終經濟影響之間會有另一個時間差異，但這是無論何時發生都會在簽署時發揮作用的組成部分。

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

您的下一個問題來自摩根士丹利的 Betsy Graseck。

A couple of questions. One, a little bit ticky-picky, but on your NIM sensitivity that you've given the 10-Q -- 10-K. It would be helpful to understand how much of that NIM sensitivity is coming from the non-legacy businesses. How much of that NIM sensitivity is going to be retained after you sell out the businesses that you've identified?

幾個問題。一，有點挑剔，但在你給 10-Q -- 10-K 的 NIM 靈敏度上。了解 NIM 敏感性中有多少來自非傳統業務將很有幫助。在您出售您已確定的業務後，將保留多少 NIM 敏感性？

Yes. I don't have that breakout, Betsy. I mean I -- we'll have to kind of get back to you. I don't have that breakout.

是的。我沒有那個突破口，Betsy。我的意思是我 - 我們將不得不回复你。我沒有那個突破口。

And your next question comes from Vivek Juneja with JPMorgan.

您的下一個問題來自摩根大通的 Vivek Juneja。

Mark, Jane, a quick question, probably more for Mark. The RWA increased from the higher volatility that you would have seen in your trading assets in the first quarter? What was the offset to that?

馬克，簡，一個簡短的問題，可能更多是給馬克的。 RWA 是從您在第一季度交易資產中看到的較高波動性中增加的？對此有何抵消？

So look, in the first quarter, the major driver that we've seen is really on the credit risk side from an RWA point of view, and that was really tied to SACR. That's the biggest driver of the fourth quarter, the first quarter RWA increase that we've seen. So the RWA from a market risk point of view was mostly flat due to reductions in trading book securitizations, that was kind of -- those are the kind of the main drivers there.

所以看，在第一季度，從風險加權資產的角度來看，我們看到的主要驅動因素實際上是信用風險方面，這確實與 SACR 相關。這是第四季度的最大推動力，也是我們看到的第一季度 RWA 增長。因此，從市場風險的角度來看，由於交易賬戶證券化的減少，RWA 基本持平，這在某種程度上是主要驅動因素。

And what I'd say is, and you certainly heard this loud and clear from Paco at Investor Day, a lot of the strategy here is also making sure that we're optimizing our capital. We're very mindful around the returns that we're generating and how we allocate and deploy capital. And this is a quarter that [Andy] and Paco running the businesses have been very mindful around that. So that also helped.

我想說的是，你肯定在投資者日從帕科那裡聽到了這一點，這裡的很多策略也是確保我們正在優化我們的資本。我們非常關注我們產生的回報以及我們如何分配和部署資本。這是 [Andy] 和經營業務的 Paco 非常注意這一點的一個季度。所以這也有幫助。

Yes. So like I said, securitizations would be an offset as would some of the equity derivatives.

是的。所以就像我說的，證券化和一些股票衍生品一樣可以抵消。

(Operator Instructions) Our next question is from Steven Chubak with Wolfe Research.

（操作員說明）我們的下一個問題來自 Wolfe Research 的 Steven Chubak。

It was encouraging certainly to hear you guys reaffirm the '22 guidance for low single-digit revenue growth, mid-single-digit expense growth. But just given the positive surprise on revenues in the quarter, the number of rate hikes getting baked into the forward curve has increased since your last update. I wanted to get some perspective on just why you didn't revise the revenue forecast higher? And just given the pace and timing of investments, as we look ahead to 2023 and beyond, how should we think about the timing for when you guys can get back to positive operating leverage?

聽到你們重申 22 年低個位數收入增長、中個位數支出增長的指導，這當然令人鼓舞。但鑑於本季度收入的積極驚喜，自上次更新以來，被納入遠期曲線的加息次數有所增加。我想了解一下你們為什麼不上調收入預測？考慮到投資的步伐和時機，在我們展望 2023 年及以後，我們應該如何考慮你們何時可以恢復正運營槓桿？

Yes. Look, on the -- let me kind of take that. So on the revenue side, as you would have heard us describe, there have been puts and takes that have played through the quarter, and there's still a fair amount of uncertainty that's out there. And so while there have been increases as it relates to rates, and we've seen and expect to see some benefit play through for that, there's also been an impact on banking revenues as we see the uncertainty creating a dynamic where corporate clients are pausing, particularly as it relates to equity capital markets and debt capital markets. And so as I mentioned, there are offsets that play out. And so we felt comfortable kind of maintaining the guidance on the revenue top line.

是的。看，關於 - 讓我接受。所以在收入方面，正如你會聽到我們描述的那樣，整個季度都有看跌期權，而且仍然存在相當多的不確定性。因此，儘管與利率相關的增長有所增加，我們已經看到並期望看到一些好處，但也對銀行收入產生了影響，因為我們看到不確定性創造了企業客戶暫停的動態，特別是因為它與股權資本市場和債務資本市場有關。正如我所提到的，存在一些抵消。因此，我們對維持收入最高線的指導感到很自在。

In terms of the expenses, as I mentioned at Investor Day, the spend that we have going on in expenses is critically important. And we're still growing them as it relates to transformation. And as it relates to business-led investments. On the business-led investment side, the good news is that we're starting to see some of the top line strength play out, not just driven by rates, but also driven by things like fees, which is what we forecasted.

就費用而言，正如我在投資者日提到的那樣，我們在費用方面的支出至關重要。我們仍在發展它們，因為它與轉型有關。因為它與商業主導的投資有關。在以商業為主導的投資方面，好消息是我們開始看到一些頂線實力發揮作用，不僅受利率驅動，還受到費用等因素的驅動，這正是我們的預測。

On the transformation side, we continue to make progress. And we've talked about how critically important that is to our operations going forward. We expect that, that will peak or arc, if you will, as we talked about at Investor Day, and that will occur in the near term and will be an important offset, if you will, to the structural expense base that we have as the efficiencies from those spending -- from that spending, excuse me, plays through.

在轉型方面，我們不斷取得進展。我們已經討論過這對我們未來的運營至關重要。正如我們在投資者日所討論的那樣，我們預計，如果你願意，這將達到頂峰或弧線，這將在短期內發生，如果你願意，這將是對我們所擁有的結構性支出基礎的重要抵消這些支出帶來的效率——對不起，來自那些支出，發揮了作用。

And just to chip in as well, we're committed to the (inaudible) investments on our transformation and on our growth. We think they're both critically important. We're equally committed to managing our expense base prudently and forensically. And I think the piece there, if there's any comfort from our numbers is we're getting on with it. We're not hanging around here. You've seen us do that with the divestitures. We're doing the same on our transformation and on our investment side, getting very focused on making sure we deliver the results you'd expect from them. You'll see something similar when we start divesting and closing the different transactions, and we'll talk to you about what we're doing on getting those -- any stranded expenses out and getting focused on that. So you can expect us to see us going pretty aggressively after different elements of our cost base as the timing is appropriate.

也只是為了參與進來，我們致力於（聽不清）對我們的轉型和增長的投資。我們認為它們都至關重要。我們同樣致力於審慎和審慎地管理我們的費用基礎。我認為那裡的一塊，如果我們的數字有任何安慰的話，我們正在繼續努力。我們不會在這裡閒逛。您已經看到我們在資產剝離方面做到了這一點。我們在轉型和投資方面也在做同樣的事情，非常專注於確保我們提供您期望的結果。當我們開始剝離和關閉不同的交易時，您會看到類似的情況，我們將與您討論我們正在做些什麼來獲得這些 - 任何擱淺的費用並專注於此。因此，您可以期待我們會在適當的時機看到我們在成本基礎的不同要素之後非常積極地進行。

And your next question comes from Ken Usdin with Jefferies.

您的下一個問題來自 Ken Usdin 和 Jefferies。

Next question is from Jim Mitchell with Seaport Global.

下一個問題來自 Seaport Global 的 Jim Mitchell。

Maybe just a question on -- just following up with the last question. Do you have a specific update for NII growth this year, given the forward curve is substantially higher than 100 basis points? And how you're thinking about NII overall? And then as a subset of that, how do we think about your deposit base or mostly your more institutional deposit base acting in an aggressive QT environment?

也許只是一個問題- 只是跟進最後一個問題。鑑於遠期曲線遠高於 100 個基點，您是否對今年的 NII 增長有具體更新？以及您對 NII 的整體看法如何？然後作為其中的一個子集，我們如何看待您的存款基礎，或者主要是您在激進的 QT 環境中的更多機構存款基礎？

Yes, sure. Look, I'm not giving kind of guidance kind of broken out, if you will, for the revenues. We're standing by the full year guidance that we've talked about. Obviously, with rates moving the way that they have, we would expect that we would see some improvement on the NII line, but I haven't given specific guidance broken out for the 2 lines.

是的，當然。聽著，如果你願意的話，我不會就收入提供那種指導。我們堅持我們已經討論過的全年指導。顯然，隨著利率的變化，我們預計 NII 線會有所改善，但我沒有給出這兩條線的具體指導。

In terms of the deposit base we have, as you know, we've got a mix of consumer and corporate client deposits. We skew a bit more heavily towards the corporate client deposit base. That comes with -- generally comes with a higher beta. And so they are likely to be more reactive to, and reactive sooner to the increase in interest rates. And quantitative tightening will certainly have a longer-term impact on the level of deposits that's out there.

如您所知，就我們的存款基礎而言，我們混合了消費者和企業客戶存款。我們更傾向於企業客戶存款基礎。附帶 - 通常帶有更高的測試版。因此，他們可能對利率上升反應更快，反應更快。量化緊縮肯定會對現有存款水平產生長期影響。

But with that said, our plans both in the near term and as we've played out the Investor Day forecast, don't hinge upon significant growth in deposits. We expect some growth, but growth consistent with kind of pre-pandemic levels, but that's not outsized growth, and we believe our strategy, which is broader than just going after deposits, but really is around solutions for corporate clients and the full spectrum of financial services for the consumers that we focus on will allow for us to capture an appropriate level consistent with how the economy evolves.

但話雖如此，我們的短期計劃以及我們已經完成投資者日預測的計劃並不取決於存款的顯著增長。我們預計會有一些增長，但增長與大流行前的水平一致，但這並不是超大的增長，我們相信我們的戰略不僅僅是追求存款，而是圍繞企業客戶的解決方案和全方位的我們關注的為消費者提供的金融服務將使我們能夠獲得與經濟發展方式相一致的適當水平。

And your next question comes from Erika Najarian with UBS.

您的下一個問題來自瑞銀的 Erika Najarian。

Actually, Chubak and Jim asked my question. I think it might be helpful to consider, Mark for next quarter to break out the NII guide, given the -- obviously, the uncertainty that we all have on forecasting trading and investment banking?

實際上，丘巴克和吉姆問了我的問題。我認為考慮一下，馬克下個季度打破 NII 指南可能會有所幫助，因為——顯然，我們都對預測交易和投資銀行業務存在不確定性？

Thanks, Erika.

謝謝，埃里卡。

Your next question comes from Betsy Graseck with Morgan Stanley.

您的下一個問題來自摩根士丹利的 Betsy Graseck。

I just wanted to ask about how you're thinking about the U.S. Card business. This is an area where it feels like in some areas, you've been lagging a bit and in other areas accelerating. And I just wanted to get a sense as to how you're thinking about the trajectory this year in particular, since it's one of the better margin businesses that you've got, and it also obviously keys into the reserve ratio a bit?

我只是想問一下您對美國信用卡業務的看法。在這個領域，感覺在某些領域，你一直有些落後，而在其他領域卻在加速。我只是想了解一下您對今年的發展軌蹟有何看法，因為它是您擁有的利潤率較高的業務之一，而且它顯然也對準備金率起到了關鍵作用？

Yes. I'm surprised you thought we were lagging because we don't -- we certainly don't see that. I've been really pleased with how the cards franchise has been performing on multiple different drivers on client acquisition, on the spend on some of the new propositions that we've been bringing in. You heard from Anand about the growth on proprietary cards. The installment lending growth, 75% up, albeit from a small base this quarter. So there are multiple different dimensions. So I think it's -- we're very pleased to see the business actually picking up.

是的。我很驚訝你認為我們落後了，因為我們沒有——我們當然沒有看到這一點。我對卡片特許經營在客戶獲取方面的多種不同驅動因素以及我們一直在引入的一些新主張上的支出表現感到非常滿意。您從 Anand 那裡聽說了專有卡片的增長。儘管本季度基數較小，但分期貸款增長了 75%。所以有多個不同的維度。所以我認為這是 - 我們很高興看到業務實際回升。

And as I said, Betsy, in my prepared remarks, I like where the business is headed. I think part of it is I am more positive around the U.S. economy and the U.S. consumer than really any other geographies around the world. And that helps with so much momentum in the labor market. We're seeing still quite a bit of excess liquidity sitting there in the back pocket of our consumers and very healthy balance sheet. I think we have peaked in the payment rates. So we're just starting to see the first signs of that coming down. And I think that's good because it's a return to a more -- it should be the return this year to a more healthy behavior.

正如我所說，Betsy，在我準備好的評論中，我喜歡業務的發展方向。我認為部分原因是我對美國經濟和美國消費者的看法比世界上任何其他地區都更加積極。這有助於勞動力市場的強勁勢頭。我們看到仍然有相當多的流動性過剩存在於我們消費者的後袋和非常健康的資產負債表中。我認為我們的支付率已經達到頂峰。所以我們才剛剛開始看到這種下降的最初跡象。我認為這很好，因為這是對更多的回歸——今年應該是對更健康行為的回歸。

The spend has obviously been quite remarkable. It's up in the mid-20%. Also great to see the experience side and that services side coming back in again. And that's we've been seeing it in travel. We've been seeing it in apparel. People like getting dressed up to go to dinner again in a restaurant. Those different things, it's nice to see things coming back to normality. So I'm pretty positive both from cyclically where this is headed, the recovery from COVID, where it's headed. And I'm also pretty happy with the strategy that Anand laid out and the progress we're making against it. So I think some good things ahead here.

支出顯然是相當可觀的。它上漲了20％左右。也很高興看到體驗方面和服務方面再次回歸。這就是我們在旅行中看到的。我們一直在服裝中看到它。人們喜歡盛裝打扮再次去餐廳吃飯。那些不同的事情，很高興看到事情恢復正常。因此，無論是從周期性的發展趨勢來看，還是從 COVID 的複蘇趨勢來看，我都非常樂觀。而且我也對 Anand 制定的策略以及我們針對它所取得的進展感到非常滿意。所以我認為這裡有一些好事。

Yes. And the only thing I'd add is a couple of numbers, right? So the sales are up 24% year-over-year, exceeding pre-pandemic levels across the categories. Acquisitions are up 23% year-over-year. Again, bringing on new card customers into our family, if you will. Revenues are down 2%, but you really have to look through the investments that we're making in acquisitions and the rewards costs associated with those that impact that revenue being down 2%. If you adjust for the acquisition costs, actually, our revenues would be up 1% year-over-year. So I agree completely with you, Jane, which is we're very pleased with the progress here. We're seeing similar momentum start to play through on the Retail Services side as well. The sequential performance on average interest earning balances is a good signal for how things will play out. And we continue to feel good about the growth we forecasted towards the back half of the year.

是的。我唯一要添加的是幾個數字，對嗎？因此，銷售額同比增長 24%，超過了各個類別的大流行前水平。收購量同比增長 23%。如果您願意，再次將新卡客戶帶入我們的家庭。收入下降了 2%，但您確實必須仔細研究我們在收購方面的投資以及與影響收入下降 2% 的相關的獎勵成本。如果您調整購置成本，實際上，我們的收入將同比增長 1%。簡，我完全同意你的看法，我們對這裡的進展非常滿意。我們看到類似的勢頭也開始在零售服務方面發揮作用。平均利息收入餘額的連續表現是一個很好的信號，表明事情將如何發展。我們繼續對我們預測的下半年增長感到滿意。

And our next question comes from Andrew Lim with Societe Generale.

我們的下一個問題來自法國興業銀行的 Andrew Lim。

So I get the impression that maybe people are surprised by your NII guidance because in the past, you've officially given it as based on a runoff balance sheet or is it appears based on a static balance sheet. And I think you mentioned a few quarters ago that if it was on the same basis, static balance sheet that your NII uplift will be about $2.5 billion to $3 billion for 100 basis point parallel shift. Is that something you're still sticking to? And then within the shape of that, how much of that is due to the short-term increasing by 100 basis points? I think you're much more sensitive to the short-term going up. Is that something that you can disclose a rough figure on?

所以我的印像是，也許人們對你的 NII 指導感到驚訝，因為在過去，你正式給出它是基於徑流資產負債表，還是它看起來是基於靜態資產負債表。而且我認為您在幾個季度前提到過，如果在相同的基礎上，靜態資產負債表上您的 NII 提升將在 100 個基點的平行轉移中約為 25 億至 30 億美元。那是你還在堅持的事情嗎？然後在這種情況下，其中有多少是由於短期增加了 100 個基點？我認為你對短期上漲更為敏感。你可以透露一個粗略的數字嗎？

Sure. And I'd like to separate kind of NII guidance from the IRE sensitivity and disclosure that we have. And so you're absolutely right, and I'm not moving -- we're not moving off of our IRE disclosure at all. The analysis is such that with a parallel shift in rates of about 100 basis points that we see somewhere around $2.5 billion to $3 billion of an increase kind of play through. And as you know, as I've said before, that's cross currencies, with about 2/3 of that being to non-U.S. currencies and the other 1/3 obviously being U.S. So that is still our view from an ROE point of view. We're not -- we haven't changed that view.

當然。我想將 NII 指南與我們擁有的 IRE 敏感性和披露分開。所以你是絕對正確的，我不會動——我們根本不會擺脫我們的 IRE 披露。分析是這樣的，隨著大約 100 個基點的利率平行變化，我們看到大約 25 億至 30 億美元的增長通過。如你所知，正如我之前所說，這是交叉貨幣，其中大約 2/3 是非美國貨幣，另外 1/3 顯然是美國貨幣。所以從 ROE 的角度來看，這仍然是我們的觀點.我們沒有——我們沒有改變這種觀點。

And our next question comes from Mike Mayo with Wells Fargo.

我們的下一個問題來自富國銀行的 Mike Mayo。

A follow-up. I guess this is not new, but the expenses are just so high, and we haven't heard the 4% inflation number from others and, maybe others are able to offset that a little bit more. And the 1% due to volume-related when, Jane, you mentioned you don't expect this level of capital markets to be sustained. So I guess I'm just -- I'm griping about something that's been around for a while. I get it. You have the right order, you have the transformation, you have business sales. You said you underinvested in the past and everything else. But I mean, you have 1,200 basis points between your expense and revenue growth and just seems so high. But you're also guiding for what I think is like 300 basis points of that spread for the full year. So does that mean this is as bad as it gets, and that spread should be narrowed? And just some of those other inflation, volume expenses, expenses generally because it's frustrating for investors.

一個跟進。我想這不是什麼新鮮事，但費用實在是太高了，而且我們還沒有從其他人那裡聽到 4% 的通貨膨脹數字，也許其他人能夠多抵消一點。簡，您提到與交易量相關的 1%，您不希望資本市場的這種水平能夠持續下去。所以我想我只是——我在抱怨一些已經存在了一段時間的事情。我得到它。你有正確的訂單，你有轉型，你有業務銷售。你說你在過去和其他事情上投資不足。但我的意思是，你的支出和收入增長之間有 1,200 個基點，而且看起來如此之高。但你也在指導我認為全年價差的 300 個基點。那麼這是否意味著情況已經如此糟糕，並且應該縮小傳播範圍？以及其他一些通貨膨脹、數量費用、費用，通常是因為這讓投資者感到沮喪。

Yes. So why don't I take that and kind of try and talk through it. So the first thing I'd say is that the 10% growth that we have in the quarter is consistent with the guidance. I just want to be clear that at Investor Day, that's what we talked about. We would love for the number to be different, but we understand, and we know that this is what's required to get the franchise to where it needs to be. And so we're taking those hard decisions. We're spending the money where we need to spend it. We're being diligent about that to make sure that we're not being wasteful in that effort. But we don't want to create or go through the things that we've gone through in the past in the way of underinvesting. And so we're going to avoid that.

是的。那麼我為什麼不接受它並嘗試通過它來討論它。所以我要說的第一件事是，我們在本季度的 10% 增長與指導一致。我只是想明確一點，在投資者日，這就是我們所討論的。我們希望這個數字有所不同，但我們理解，並且我們知道這是將特許經營權帶到需要的地方所需要的。所以我們正在做出這些艱難的決定。我們把錢花在我們需要花的地方。我們正在為此努力，以確保我們不會在這方面浪費精力。但我們不想以投資不足的方式創造或經歷我們過去經歷過的事情。所以我們要避免這種情況。

The second thing is, and you acknowledge that kind of in your reference to transformation and business-led investments. On the structural investments spend, I should say, about half of that is from inflation, so not the full 4%. A portion of it is also from nonconsent order risk and control spend that we're making, things like the financial crime unit, things like cyber spend, things like the work we're doing around our wholesale credit operations, important things. And there are some productivity savings that play through that.

第二件事是，您在提及轉型和業務主導的投資時承認這種情況。關於結構性投資支出，我應該說，其中大約一半來自通貨膨脹，所以不是全部的 4%。其中一部分還來自我們正在進行的非同意訂單風險和控制支出，比如金融犯罪部門、網絡支出等，比如我們圍繞批發信貸業務所做的工作，以及重要的事情。通過這種方式可以節省一些生產力。

And then the final piece on the volume related is their transactional costs that are associated with the activity that we do on the trading side, their spend that we make in order to drive that activity. And the mix matters. And so while revenues kind of play out in one way for the quarter, the mix of the market's activity impacts the level of volume-related expenses that's generated through those transactions. So those are a couple of things.

然後與交易量相關的最後一部分是與我們在交易方面進行的活動相關的交易成本，以及我們為推動該活動而進行的支出。混合很重要。因此，雖然本季度的收入以一種方式發揮作用，但市場活動的組合會影響通過這些交易產生的與數量相關的費用水平。所以這是幾件事。

Again, we're consistent with guidance. We believe we're on track for the guidance we gave for the full year of mid-single digits. And we're looking forward to generating the efficiencies that come out of this spend and put a dent in our structural expense base over time.

同樣，我們與指導一致。我們相信我們正在為全年中個位數的全年提供指導。我們期待著從這筆支出中產生效率，並隨著時間的推移減少我們的結構性支出基礎。

Yes. And let me jump in as well, Mike, because this is something Mark and I have -- we're very, very aware of. We're managing it in excruciating detail on multiple dimensions. We are taking the lessons that we've got -- we've got to take some of the short-term pain here in order to get us into the position we need to be in the medium term and the long term. And from -- be it the stranded costs and the divestitures, we know we'll have opportunities there. We talked about at Investor Day also being in a position to simplify the management structure and take out some of the structural expenses there. So this is going to be an area of continued focus from Mark and I, that we make sure that not only are we managing the arc and ensuring there is one, but also that we generate the benefits from our shareholders from all of this. And it's something I feel exceedingly high accountability for as does the management team. We get it.

是的。讓我也加入進來，邁克，因為這是馬克和我所擁有的——我們非常非常清楚。我們在多個維度上以極其詳細的方式對其進行管理。我們正在吸取我們已經獲得的教訓——我們必須在這裡承受一些短期的痛苦，以使我們處於中長期所需的位置。而且，無論是擱淺的成本還是資產剝離，我們都知道我們在那裡會有機會。我們在投資者日談到了能夠簡化管理結構並消除那裡的一些結構性開支。所以這將是馬克和我持續關注的一個領域，我們確保我們不僅管理弧線並確保有一個弧線，而且我們從所有這一切中從股東那裡獲得利益。我和管理團隊一樣，對此負有極高的責任感。我們懂了。

And there are no more further questions, I will turn the call over to Jen Landis for closing remarks.

沒有其他問題了，我將把電話轉給 Jen Landis 做閉幕詞。

Thank you, everyone, for joining us today. If you have any follow-up questions, please reach out to our IR. Enjoy the day. Thank you.

謝謝大家，今天加入我們。如果您有任何後續問題，請聯繫我們的 IR。享受這一天。謝謝你。

And this concludes Citi's first quarter earnings call. You may now disconnect.

花旗第一季度財報電話會議到此結束。您現在可以斷開連接。