Citigroup Inc. (NYSE:C) Q4 2017 Earnings Conference Call - Final Transcript

Jan 16, 2018 • 10:00 am ET

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Citigroup Inc. (NYSE:C) Q4 2017 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Hello and welcome to Citi's Fourth Quarter 2017 Earnings Review with Chief Executive Officer Mike Corbat and Chief Financial Officer John Gerspach. Today's call will be hosted by Susan Kendall, head of Citi investor relations. We ask that you please hold all questions until the completion of the formal remarks, at which time you will 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.

Ms. Kendall, you may begin.

Executive
Susan Kendall

Thank you, Jamie. Good morning and thank you all for joining us. On our call today, our CEO Mike Corbat will speak first. Then John Gerspach, our CFO, will take you through the earnings presentation, which is available for download on our website Citigroup.com. Afterwards, we'll be happy to take questions.

Before we get started, I would like to remind you that today's presentation may contain forward-looking statements, which are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results in capital and other financial condition may differ materially from these statements due to a variety of factors, including the precautionary statements referenced in our discussion today and those included in our SEC filings including without limitation the risk factors section of our 2016 form 10-K.

With that said, let me turn it over to Mike.

Executive
Mike Corbat

Thank you, Susan, and good morning, everyone. As you know, our net income for the fourth quarter in the year reflect the impact of the one-time non-cash charge due to tax reform, and I'll go into some more detail about that after I discuss our business performance. We had a strong close to an important year. We reported operating earnings of $3.7 billion for the fourth quarter of 2017, or $1.28 per share.

During the quarter we again showed growth in many of the products we've been investing in and increased loans in both sides of our house. Globally, consumer banking was up 4% including 7% internationally. We again had revenue growth and positive operating leverage in both the U.S and our international franchise. Credit remained favorable and net income grew by 8%. The institutional clients group saw continued momentum with double-digit growth and its banking products comprised of TTS, investment banking, private bank, and corporate lending. We did have a decline in markets revenue due to a less robust environment this quarter than in the period following the U.S. election last year but engagement remained strong with our target clients.

For the full year, on an operating basis, we earned $15.8 billion in net income for 2017, which was nearly $1 billion more than in 2016, and our earnings per share were $5.33, up 13% from 2016. We also made solid progress toward the targets we laid out during our Investor Day in July as a result of our focus on client-led growth. Revenue growth and strong expense management brought us to a full-year efficiency ratio of 57.7%, an improvement of