Citigroup Conference Call Highlights

Citigroup C reported its third quarter earnings on Tuesday. Shares of the company are up two percent. Below are some key highlights from its conference call: International and Business growth: • Earlier today we reported earnings of $3.4 billion for the third quarter of 2014. • Excluding the impact of CVA • DVA net income was $3.7 billion or $1.15 per share. • We believe our consumer business will achieve stronger performance by focusing on the countries where our scale and network provide a competitive advantage. • At that point, we'll have reduced our consumer footprint by 19 markets since 2012 and global Consumer Banking will be serving 57 million clients across 24 markets. • We achieved solid performance across our Institutional businesses. • Banking and markets saw improved revenue from prior-year period, assisted by a better trading environment and a strong M&A pipeline. • Treasury and Trade Solution revenues increased slightly despite spread compression. • Global Consumer Banking had a strong quarter as well and saw loan growth throughout the regions. • In North America we had revenue improvement in each of our businesses both quarter-on-quarter. • Internationally we saw revenue improvements across every region compared to the third quarter of last year. • In Citi Holdings we closed the sales of our consumer businesses in Greece and • Spain, which helped reduce assets during the quarter by 7% to $103 billion. • During the same period, we grew average retail loans by 9% and average deposits by 2% • As we finished out 2014 we're very mindful of the challenging macroenvironment, geopolitical tensions, uneven growth and concerns over the timing of interest rate increases. • The Eurozone is not yet in growth mode and emerging market growth has slowed. • We have sold or closed nearly 90 branches in North America. Financials: • CVA/DVA was a negative $371 million pre-tax or $228 million after-tax this quarter. • Total assets were $29 billion as of the end of the third quarter • Including a $474 million one-time charge due to the implementation of funding valuation adjustments related to certain derivatives. • These charges had a negative impact on EPS of $0.08 per share this quarter. • We earned $3.7 billion in the third quarter, a 13% increase from last year. • In Citi Holdings, we were profitable again this quarter with over $270 million in net income compared to a loss of over $100 million last year • Average retail loans by 9% and average deposits by 2%. • In Consumer Banking we grew revenues, loans, and deposits in every region resulting in positive operating leverage and strong income growth over last year. Guidance: • Consumer Banking we expect to continue growing our revenues, while maintaining positive operating leverage year-over-year. • In markets, our results will likely reflect the overall environment as well as normal seasonal treads. • In investment banking revenues should also reflect the overall market. • Turning to expenses, in Citicorp our core operating expenses should be relatively flat. • We expect our tax rate for the fourth quarter to be broadly in line with the first half of the year in the range of 32%.