Citigroup Delivers Better-Than-Expected Trading Results
- 00:00What do you see? very interesting at Citigroup you're seeing them beat on fixed income trading on equities trading. So they are really
- 00:06showing that they're going to hold on strong to this trading environment. And you also have Jane Frazier like every other CEO
- 00:12that's come out this morning talk about the volatile market environment how that's led to lower capital markets activity.
- 00:19However she's still going to invest in that investment bank even though you have revenue here falling a little short of
- 00:25expectations on Russia. The big question everyone was asking about you haven't got a one point five billion dollar kind of
- 00:32reserve build here. Related to that exposure in Russia. That's exactly in line with what was expected by at least Mike Mayo. So
- 00:40we do have kind of a containment here and a bigger sense of exactly how much will be lost relative to the Russia exposure
- 00:47there. Certainly as we get a slew of headlines from multiple
- 00:52disciplines here I'm wondering if there's a takeaway so far as we get the bulk of the bank earnings of the U.S. majors. Is
- 00:59there any theme that is starting to emerge for you that you think will be the story of the first quarter. Yeah it's an
- 01:05interesting question Lisa because we have now five of the six banks reporting. And you do have some strength in the consumer
- 01:10some sense of optimism but a lot of uncertainty about how that looks as rates continue to rise. That will be telegraphed again
- 01:18quarter after quarter here because there is a greater expect revenue expectation as net interest income rises relative to
- 01:25rates. But again what are charge offs going to look like in the future. You do have Wells Fargo warning that those could rise.
- 01:32All right. What's the best Su Keenan impatient meter right now on Jane Frazier in the Citigroup strategic plan. What's the
- 01:39level of impatience at the sell side. Let's go let's go let's go. This is a great question because they had their big Investor
- 01:45Day earlier this year. And the question is not only how they will contract the bank but where they will expand. A lot of
- 01:51investment here in commercial banking a lot of investment in investment banking where Citigroup is tending to be number four.
- 01:56Number five competing heavily with Bank of America. So you know they say three years time is when they want to see initial
- 02:03results. And that was for Jane Frazier. It was certainly for David Solomon as well. But there is a little bit of patience
- 02:10here because Citigroup is a behemoth still with regulatory challenges to contend to.
