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

Jan 14, 2019 • 10:00 am ET

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

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Q & A
Executive
Mark Mason

LTM there was about $42.3 billion, fourth quarter of '18 is about $41.8 billion. So that's a ballpark range, roughly.

Analyst
John McDonald

Okay. Got it. And then two questions for you guys. On the Branded Card, John, you mentioned feeling good about the momentum continuing on the NII front which was very solid this quarter and better fees as you lapped the partnership headwind. So what's a reasonable revenue growth aspiration for 2019 in this kind of economy? Is it similar to how you exited year in that 2% to 3%? Is that kind of how you're thinking about Branded Card revenues for '19?

Executive
Michael Corbat

Yes, I mean, if you -- the Branded Cards as John mentioned, fourth quarter roughly 3% underlying and that's a -- we think of that as a pretty good run rate going into 2019.

Analyst
John McDonald

Okay. And then you mentioned the card loss guidance just a question ago. Just wondering on the card ROA, I think the previous target for Branded Card was 215 basis points of Branded Card ROA. For the year you're at 180 basis points, and this quarter you're at 211 basis points. Is that 215 basis points kind of the aspiration on the Branded Card ROA? I think that was prior to tax reform. We're just wondering what your updated thoughts are there?

Executive
Michael Corbat

Yes, that's still the target we're moving towards the Branded Cards, and then now with (ph) tax reform.

Analyst
John McDonald

Okay. So kind of new tax rates maybe offsetting increased competitions or stays about the same?

Executive
Michael Corbat

It is probably -- just probably a little bit of upside to that.

Analyst
John McDonald

Got it. Okay, so staying conservative there. Thank you.

Operator
Operator

Your next question is from the line of Matt O'Connor with Deutsche Bank.

Analyst
Matt O'Connor

Good morning.

Executive
John Gerspach

Hey, Matt. Good morning.

Analyst
Matt O'Connor

Are there any specific marks that you'd want to call out either within fixed income trading or other areas related to go hung (ph) deals or obviously this is kind of a tough December and spreads widened and some of it is just kind of normal marks, I mean, are there any specific marks you'd want to call out? And then have those reversed in January? There's been some articles out there talking about spreads tightening and banks able to offload some stuff they couldn't just last month?

Executive
Mark Mason

The short answer to that is no. We -- that is not layered that we saw in our particular trading results. And to the extent we had those kind of marks, they'd more likely end up in our loan revenue that we were talking about and you can see we had fairly robust loan revenue growth again, so that's not what's impacting us.

Analyst
Matt O'Connor

Okay. And then just a bigger picture question. I mean, obviously if you look at where bank stocks in general especially your stock, there's a concern about a macro slow down. I don't think we're seeing it outside the capital market revenues in your results, but anything real time that you're seeing in the GTS business?