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
Analyst
Matt O'Connor

Obviously, you see a lot of global corporates, lot of government data, we have the shutdown in the US, just scribe any real time updates in terms of the macro conditions that you're saying?

Executive
Michael Corbat

Yes, what -- I would say, we see is we actually see certainly US and even more broad global economy where the underlying fundamentals in particular on a domestic economy basis as you go around the world, comprised of strong tight labor markets, reasonable wage increases, good consumption while investment coming down, still reasonable. And I think the -- what's clearly and in the fourth quarter overshadowed that was really market fears over what the transition from QE to QT might look and feel like and obviously we saw a lot being paid attention to pretty much any word that came out of the Fed's mouth.

And I think the third piece is that adds to that volatility is things such as trade and the on-off, again, momentum of trade negotiations, obviously affecting two of the biggest economies in the world. And I think when we put those three things together, we clearly see a disconnect between what we see in our business on an anecdotal basis and what the markets are saying. So, we don't see it and I think what we've said before, and I think others had said before, is that right now we see the biggest risk in the global economy is one of talking ourselves into the next recession as supposed to the underlying fundamentals taking us there.

Analyst
Matt O'Connor

Okay. Thank you.

Operator
Operator

Your next question me from the line of Glenn Schorr with Evercore.

Analyst
Glenn Schorr

Hello there.

Executive
Michael Corbat

Hey, Glenn.

Analyst
Glenn Schorr

Okay. So I just wanted to hammer on one thing that you said, you said you won't sacrifice key investments for competing in the future so on to the market conditions, I get it, and you are doing that. But as you balance, you have a lot of targets out there and I think we probably all over obsess over each basis point on them but as you as you balance the hitting the targets versus the necessary investments, can we just rewind and go through what you think those couple of key investments, I know there's more than that, but key investments to make you as you said, competitive in 2019 and beyond what's going to drive growth?

Executive
Michael Corbat

Sure. So if you go back and you look at the last page or so that John talked about, when you look at underlying growth in the business, if you look at John talked about the $9 billion of TTS revenue growing at a 11%, we talked about security services, the private bank, lending, Mexico, US Branded Cards, equities, M&A. We just take those revenues and add them up you're an excess of 50% of the revenue of the firm. And those are, if you look at the momentum in those businesses, it's clearly strong and what we don't want to do is stop that