Citigroup Inc. (NYSE:C) Q4 2018 Earnings Conference Call - Final Transcript

Jan 14, 2019 • 10:00 am ET


Citigroup Inc. (NYSE:C) Q4 2018 Earnings Conference Call - Final Transcript


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John Gerspach

also result in positive operating leverage for Citi in total and for our consumer and institutional businesses in 2019.

Of course, the magnitude of operating leverage we can achieve this year is sensitive to the revenue environment. But even if the environment is challenging, we believe we can deliver more total efficiency improvement than we did in 2018. And achieving our 12% RoTCE goal for this year is not dependent on capturing the full efficiency benefits we laid out in the fall, which showed roughly 175 basis points of improvement to our efficiency ratio in 2019. Credit continues to perform well, our effective tax rate is coming in better than we had originally estimated under the new tax regime with the potential to move somewhat lower. And as you saw in the fourth quarter, our growth opportunities are limited, we will prudently manage the balance sheet to limit RWA growth and therefore our capital needs.

It's still our goal to get the efficiency ratio into the low 50% range. And we believe that the right level given the investments we're making in digital and automation as well as our mix of businesses. But our primary goal is to responsibly and sustainably improve the return we're delivering on our shareholders' equity from the roughly 11% we achieved in 2018 to about 12% this year, and over 13.5% in 2020.

And with that, Mike, Mark and I are happy to take any and all questions.