Citigroup Inc. (NYSE:C) Q1 2018 Earnings Conference Call - Final Transcript

Apr 13, 2018 • 11:30 am ET

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Citigroup Inc. (NYSE:C) Q1 2018 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Hello, and welcome to Citi's First Quarter 2018 Earnings Review with the 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, Natalia. 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 2017 Form 10-K.

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

Executive
Michael Corbat

Thank you, Susan, and good morning, everyone. Earlier today, we reported earnings of $4.6 billion for the first quarter of 2018 or $1.68 per share. Our quarter showed strong and balanced performance as we continued to capture client-led growth, and we remain on track to deliver on the targets we announced at Investor Day. Our earnings per share were 24% higher than one year ago as a result of strong business performance, a lower tax rate and a continued reduction in shares outstanding as we execute our capital return plans.

Relative to a year ago, we grew revenues by 3%, improved our efficiency ratio to just under 58%, increased our return on assets to 98 basis points and improved our return on tangible common equity to 11.4%. We grew loans in our core businesses by 7% or $44 billion from last year, and we ended the quarter with over $1 trillion in deposits.

Global Consumer Banking had a good all-around quarter with 6% revenue growth and positive operating leverage in every region. In the US, we continued to make progress with our Citigold Wealth Management offering and also had growth in retail services. In branded cards, we saw the underlying revenue growth that we projected, driven by an increase in interest-earning balances and strong client engagement. And in Mexico and Asia, we saw momentum in both retail banking and cards.

Our Institutional Clients Group had another solid quarter. While Fixed Income revenues were lower than a year ago, driven by less investor activity, our Equities business saw its best quarter in many years, giving us confidence that our investments are delivering