Citigroup Inc Q1 FY2024 Earnings Call

Hello and welcome to Citi's First Quarter 2024 Earnings Call. Today's call will be hosted by Jenn Landis, Head of Citi Investor Relations. We ask that you please hold all questions until the completion of the formal remarks, at which time you will be given instructions for the question-and-answer session. Also, as a reminder, this conference is being recorded today. If you have any objections, please disconnect at this time. Ms. Landis, you may begin.

Thank you, operator. Good morning and thank you all for joining our First Quarter 2024 Earnings Call. I am joined today by our Chief Executive Officer, Jane Fraser, and our Chief Financial Officer, Mark Mason. I'd like to remind you that today's presentation, which is available for download on our website, citigroup.com, may contain forward-looking statements, which are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these statements due to a variety of factors, including those described in our earnings materials, as well as in our SEC filings. And with that, I'll turn it over to Jane.

Thank you, Jenn, and good morning to everyone. Today, I'm going to touch on the macroeconomic environment before I update you on the progress we're making, and then I'll discuss the quarter. While global economic performance was surprisingly disjointed last year, the overall story has been consistent of late, one of economic resiliency supported by tight labor markets and consumer spending. Growth this year looks poised to slow in many markets, and conditions are generally disinflationary. We're already seeing some Central Banks in the emerging markets starting to cut rates. In the U.S., a soft landing is viewed as increasingly likely. But we continue to see a tale of two Europes, with Germany hurt by the weak demand for goods, while southern European countries such as Spain and Greece benefit from stronger demand in services. In Asia, Japan is joining in as a bright spot, and China's economy has gained some more traction, although its property market remains a concern. Amidst all these dynamics, we continue to focus on executing our strategy and delivering the best of Citi to all our stakeholders. I said 2024 will be a pivotal year for us, as we put our business and organizational simplification largely behind us and we focus on two main priorities: the transformation and performance of our businesses and the firm. Last month marked the end of the organizational simplification that we announced in September. The result is a cleaner, simpler management structure that fully aligns and facilitates our strategy. We are now more client-centric. We're already seeing faster decision-making and a nimbler organization at work. We have clear lines of accountability, starting with my management team. Fewer layers, increased spans of control, and much less bureaucracy and needless complexity will help us run the company more efficiently, enhance our clients' experience, and improve our agility and ability to execute. While reducing expenses wasn't the primary driver of the program, more roles were ultimately impacted than the 5,000 that we discussed in January. We also took a number of other steps to sharpen our business focus and improve returns by repositioning businesses to better capture synergies, exiting certain businesses in markets that just didn't fit with our strategy, and resizing the workforce in wealth. As a result of all these combined steps, which include the simplification, we are eliminating approximately 7,000 positions, which will generate $1.5 billion of annualized run rate expense savings. The combination of these actions and the measures we're taking to eliminate our remaining stranded costs will drive $2 billion to $2.5 billion in cumulative annualized run rate savings in the medium-term. We are keeping a close eye on the execution of these efforts and overall resources to ensure we safeguard our commitment to the transformation. Given its magnitude and scale, the transformation is a multi-year effort to address issues that have spanned over two decades. We've made steady progress in retiring multiple legacy platforms, streamlining end-to-end processes, and strengthening our risk and control environment, all of which are necessary not only to meet the expectations of our regulators but also to serve our clients more effectively. A transformation of this magnitude is never linear. While we've made good progress in many areas, there are a few where we are intensifying our efforts, such as automating certain regulatory processes and the data related to regulatory reporting. We're committed to getting these right and will look to self-fund the necessary investments to do so. Turning to the quarter, we had a good start to a pivotal year. We reported net income of approximately $3.4 billion, earnings per share of $1.58, and an RoTCE of 7.6% on over $21 billion of revenues. Our revenues were up over 3% year-over-year, excluding divestitures, which was primarily the $1 billion gain from the India consumer sale last year. Our expenses were slightly down quarter-over-quarter, excluding the FDIC special assessments. Services continues to perform well and generate very attractive returns. Revenue was up 8% for the quarter as both businesses won new mandates and deepened relationships with existing clients. Fees were up a pleasing 10% for services year-over-year driven by the investments we've made across our product offering platforms and client experience. In Securities Services, we took share again this quarter, and in TTS, cross-border activity continued to outpace global GDP growth and commercial card spending remained robust. We look forward to diving deeper into these two businesses at our investor presentation on services in June. Markets bounced back from a tough final quarter in ‘23. While revenues were down 7% as lower volatility impacted rates and currencies, that was off a very strong first quarter last year. We saw good client activity in equities and in spread products, where both new issuance and securitization activity was particularly robust. We've fully integrated our financing and securitization capabilities within our markets business, and we started to see the benefits of having a unified spread product offering for our clients. The rebound in banking gained speed during the quarter, led by near-record levels of investment-grade debt issuance, as improved market conditions enabled issuers to pull forward activity. After a bit of a slow start, ECM picked up in the second half of the quarter, notably in convertibles. Our strong performance in both DCM and ECM drove investment banking revenue growth of 35% and overall banking revenue growth of 49%. While M&A revenues are still low across the street, I was pleased that we participated in some significant deals announced in the quarter, such as Diamondback's merger with Endeavor Energy and Catalent’s merger with Nova Holdings. We are cautiously optimistic that we could see a measured reopening of the IPO market in the second quarter in light of improved market valuation. As you've seen, Andy continues to form his team and is focused on three areas. First, rationalizing the expense base. Second, turning on the growth engine by focusing on investment revenues. And third, enhancing our platforms and capabilities to elevate the client experience. These won't happen overnight, but getting these things right will help us get more than our fair share of the $5 trillion of assets that our clients have away from us. This will help us achieve our returns to where they need to be in this business in the medium-term. USPB had double-digit revenue growth for the sixth straight quarter. We feel good about our position and our resiliency as a prime lend-centric issuer and are seeing positive momentum across proprietary card and partner card businesses. Healthy spending growth persists in branded cards, primarily driven by our more affluent customers. Across both portfolios, increased demand for credit continues to drive strong growth in interest-earning balances. While they're only a small part of our portfolio, we keep an eye on the customers in the lower FICO bands. We also continue to see strong engagement in digital payment offerings, such as Citi Pay, as a point-of-sale lending product, which is easily integrated into merchants' checkout processes. And we are driving more value from our retail branches, as well as getting the expense base right to increase returns there. Our balance sheet is strong across the board, an intentional result of our high-quality assets, robust capital and liquidity positions, and rigorous risk management. During the first quarter, we returned $1.5 billion in capital to our common shareholders and that includes $500 million through share buybacks. Our CET1 ratio ticked up to a preliminary 13.5%, and we grew our tangible book value per share to $86.67. We have a great franchise around the world with great clients served by great colleagues. I'm pleased with where we are, and I'm excited about where we're going. With the organizational simplification behind us and a good quarter under our belt, we have started this critical year on the right foot. While there will be bumps in the road, we will continue to execute with discipline, and we are committed to reaching our medium-term targets. With that, I'd like to turn it over to Mark, and then we will both be delighted, as always, to take your questions. Thank you.

Thanks, Jane, and good morning, everyone. I'm going to start with the firm-wide financial results focusing on our year-over-year comparisons for the first quarter, unless I indicate otherwise, and then spend a little more time on the business. In the first quarter, we reported net income of approximately $3.4 billion, EPS of $1.58, and an RoTCE of 7.6% on $21.1 billion of revenue. Total revenues were down 2% on a reported basis. Excluding divestiture-related impacts, largely consisting of the $1 billion gain from the sale of the India consumer business in the prior year, revenues were up more than 3%, driven by growth across banking, USPB, and services, partially offset by declines in markets and wealth. Expenses were $14.2 billion, up 7% on a reported basis. Excluding divestiture-related impacts and the incremental FDIC special assessment, expenses were up 5%. Cost of credit was approximately $2.4 billion, primarily driven by higher card net credit losses, which were partially offset by ACL releases in wealth, banking, and legacy franchises. At the end of the quarter, we had nearly $22 billion in total reserves with a reserve-to-funded loan ratio of approximately 2.8%. We reported expenses of $14.2 billion, which included the incremental FDIC special assessment of roughly $250 million. Also included in this number are $225 million of restructuring charges, largely related to the organizational simplification. In total, we've incurred approximately $1 billion of restructuring costs over the last two quarters. As part of these actions, we expect about $1.5 billion of annualized run rate savings over the medium-term related to our headcount reduction of approximately 7,000. In addition to the restructuring, we took approximately $260 million of repositioning costs, largely related to our efficiency efforts across the firm, including a reduction of stranded costs associated with the consumer divestitures. The expected savings from these actions will allow us to continue to fund additional investments in the transformation this year. Relative to the prior year, the remainder of the expense growth was largely driven by inflation and volume-related expenses, partially offset by productivity savings. In the remainder of the year, we expect a more normalized level of repositioning, which is already embedded in our guidance. Therefore, you can expect our quarterly expense trend to go down from here in-line with our $53.5 billion to $53.8 billion ex. FDIC expense guidance. In the first quarter, net interest income decreased by $317 million, largely driven by markets, which resulted in a 4 basis point decrease in net interest margin. Excluding markets, net interest income was relatively flat. Average loans were up $4 billion, primarily driven by loans in spread product in markets, as well as card and mortgage loans in U.S. Personal Banking, partially offset by declines in service. Average deposits were up nearly $7 billion, primarily driven by services, as we continue to grow high-quality operating deposits. This quarter we adjusted our FICO distribution to be more aligned with industry reporting practices and now show our FICO mix using a 660 threshold. In our corporate portfolio, the majority of our exposure is investment grade, which is reflected in our low level of non-accrual loans at 0.5% of total corporate loans. Our loan loss reserves incorporate a scenario-weighted average unemployment rate of approximately 5%, which includes a downside scenario unemployment rate of close to 7%. We feel very comfortable with the nearly $22 billion of reserves we have in the current environment. Turning to the asset side. Over the last several years, we've maintained a strong risk appetite framework and have been very deliberate about how we deploy our deposits and other liabilities into high-quality assets. This starts with our $675 billion loan portfolio, which is well diversified across consumer and corporate loans. About one-third of our balance sheet is held in cash and high-quality, short-duration investment securities that contribute to our nearly $1 trillion of available liquidity resources. And for the quarter, we had an LCR of 117%. To wrap it up, we are active and deliberate in the management of our balance sheet, which is reflected in our high-quality assets and strong capital and liquidity position. We ended the quarter with a preliminary 13.5% CET1 capital ratio, approximately 120 basis points, or over $13 billion above our regulatory capital requirement of 12.3%. Our current capital requirement does not yet reflect our simplification efforts, the benefits of our transformation, or the full execution of our strategy, all of which we expect to bring down capital requirements over time.

The year is off to a good start as we are laser-focused on executing the transformation and enhancing the business performance. These two priorities will not only enable us to be a more efficient, agile company, but a client-centric one that brings together the best of Citi to drive revenue growth and improve return. We are on the path to reach our 11% to 12% return target over the medium-term. With that, Jane and I will be happy to take your questions.

At this time, we will open the floor for questions. Our first question will come from Mike Mayo with Wells Fargo. Your line is open. Please go ahead.

Hi. You just finished your seven months of your organizational simplification and you said 7,000 positions go away with $1.5 billion of expense savings. That's very concrete, but more generally after 20 years, 30 years, 40 years of matrix structure down to five lines of business, you're reporting these differently, you're talking about them differently. But the question that I think a lot of people have is, are you simply reporting these lines of business differently or are you actually running them differently? Thanks.

Thank you, Mike, for the question. The simplification that we've just gone through is what we said it is. It is the most consequential set of changes, not only to the organization model that we have, but how we run the bank. It's aligned the structure with the strategy. It's simplified the bank, eliminated needless complexity. It's created greater transparency into the five businesses and their performance, as you can see. It's increased accountability. It's just easier for our people to focus on our clients and getting things done, the execution that we have ahead of us. The first thing we did was elevate the five businesses, which eliminated the ICG and PBWM layer. We brought all elements that the businesses needed to run end-to-end under the direct management of those five business heads, an example being operations. It’s enabled transparency, greater accountability, and this end-to-end and total P&L focus, focusing on the bottom-line and the returns, driving growth, expense discipline, etc. We right-placed businesses to align with the strategy. Banking, all under one umbrella, investment banking, corporate banking, commercial banking, really helping us drive synergies there. Putting finance, F&S and securitization into markets so that we have a unified spread product there, also beginning to see the benefits of that this quarter. So that's an example on the businesses, but I do want to highlight a couple of other areas around this change. By eliminating the regional layer and putting in a slimmer management structure in place in the geographies, we made sure that our countries are focused on client delivery and legal entity management. We eliminated the whole shadow geographic P&L. We've also broken the regions into smaller clusters. This allows us to better capture the big changes in trade and financial flows we're seeing. It's just much nimbler. We created client organizations to ensure our core capabilities and disciplines are being applied firm-wide to drive revenue synergies. We have given much clearer mandates as we’ve more than halved the number of committees. The spans and layers, if you exclude me, 98% of the firm now operates within eight layers. That’s a much faster decision-making process. You can get closer to where the engine of the firm is. We’ve got clearer accountabilities, eliminated most co-heads, reduced matrix reporting, and improved the producer to non-producer ratio. All of this means a clearer deck to be laser-focused on business performance in those five businesses and the transformation. It already feels different. Around my table, I’m much closer to the businesses and the clients. It makes it much easier for Mark and I and the rest of the team to run the bank like an operator versus the head of a holding company.

Our next question is from Glenn Schorr at Evercore. Your line is open. Please go ahead.

Thanks very much. Yes, so I think it shows how much you've helped us see the simpler organization. I think people have totally bought into the expense story, so a lot of credit to you guys. I think where I personally and others still have questions on the revenue side and getting to those 4% to 5% medium-term targets. So could you take us just conceptually where you think you'll drive that growth from this baseline where we're at now? And, if you want, you can address what good things you're doing inside the Investment Banking line to help drive growth?

Thanks, Glenn. I'll kick off answering this, and then I'll pass it to Mark and come back to banking. We are laser-focused on the growth and improving the returns of these businesses to where they should and will be in the medium-term. We're not just about the growth story; let me anchor it in those medium-term return targets. In services, we want to continue around the mid-20s in RoTCE. Banking should be getting to around 15%. Markets at 10% to 13%, and we’d like to see at the higher end of that range. USPB should get back to the mid-teens and then moving on to the high teens in the medium-term. Finally, as Andy and Mark talked about, we aim to improve wealth to a 15% to 20% return in the medium-term and ultimately to the mid-20s in the longer-term. We’re confident our strategy will drive 4% to 5% CAGR revenue growth in the medium-term. That’s a combination of maintaining our leadership in certain businesses, gaining share in others, and good client growth. For example, look at our win rate in TTS at over 80%. We have our commercial bank bringing in new mid-market clients and helping them accelerate their growth and success.

Good morning, Glenn. We appreciate the acknowledgement around expenses. As you know, we’ve been focused on delivering on what we say we're going to achieve. Our recent growth has been a mix of revenue and underlying business strength. We expect our NII to be down slightly this year; the momentum and growth will come from non-interest revenue. This quarter is a good example of how that’s likely to play out. The revenue topline was up over 3% overall. If you look through each of the businesses, you can see the underlying NIR growth. For example, our security services were up 14%, driven by growth in TTS and Securities Services. Investment banking has been showing a stronger rebound; our announced transactions were part of the recovery in sectors we've been investing in. While wealth revenues are down, long-term expectations remain positive. So the anticipated growth in topline revenues is largely going to come from fees, strengthening client relationships, and doing more through our commercial banking business.

Let me add that we have a very clear strategy for banking. North America is our key priority, contributing significantly to global IB wallet. Sectors such as tech, healthcare, and industrials are expected to comprise over 50% of the fee wallet going forward. We’ve positioned our resources accordingly, defending areas of strength while investing in high-growth sectors. Financial sponsors have a significant amount of estimated firepower and are a major part of global investment banking fees. We have great relationships with these clients. We will remain active in the LevFin space for our key clients and stay competitive in the private capital asset class. Together, the investment and commercial banks will closely coordinate to capture deal flow globally. All this points to rising confidence from CEOs and boards, helping with acquisition financing activities. While we're optimistic, we also acknowledge geopolitical risks and vulnerabilities we must navigate.

Our next question is from Betsy Graseck at Morgan Stanley. Your line is open. Please go ahead.

Hi, good morning. Could we dig in a little bit on the wealth side, because the expense ratio there is running a little higher, and so it would be useful just to understand the pace or timeframe when we should expect to see that start to inflect?

Yes, absolutely. Some of it has to do with the actions we've been taking on org simplifications. Andy’s focused on rationalizing the expense base. You'll see the impact of this in our headcount numbers and the expense base in the wealth business next quarter. As Mark said, this should yield a pre-tax margin of up to 30%. In terms of operating efficiency, it is also critical that we enhance our existing client relationships, which are currently under-penetrated. However, we will continue to invest in high-performing professionals in roles that can generate the revenues we expect to meet client needs.

The growth rate is essential. While we had a 3% expense growth this quarter, we plotted our path forward. Coming out of this quarter, you should see reductions in expenses as Andy continues to streamline the workforce across the wealth business. While there are expenses related to technology that may remain, we can expect some reduction from efficiencies stemming from these adjustments. We’ll aim for a balance between driving top-line revenue growth and managing expenses effectively.

Our next question is from Jim Mitchell at Seaport Global. Your line is open. Please go ahead.

Jane and Mark, I appreciate the comments on growth opportunities. Revenues are often dictated by the macro environment, which is a little beyond your control. Can you talk a little about flexibility in your expenses? You have a range of $51 to $53 billion for 2026. Should we expect to be at the very low end of that range if revenues come below targets? Thanks.

We have maintained top-line growth at 4% to 5%. The target range is to work towards $53 to $53 billion. We’ve already indicated $1.5 billion in expense savings. Should there be softness in revenues, expenses may come down in line with that. Even if revenues soften, we’re keen on continuing to invest in transformation without compromising it. It’s about balancing investment against expected returns following our strategy, while having flexibility with expenses should the environment dictate so.

Our next question is from Ebrahim Poonawala at Bank of America. Your line is open. Please go ahead.

Thank you. Mark, you mentioned having $13 billion over the regulatory minimum. You could easily be doing two times the buyback that you did in one quarter. Can you give us a sense of whether we should expect the buyback pace to increase, and provide some additional color for the rest of the year? Thank you.

Certainly, we believe buying back stock is a smart choice given our valuation, and we want to do as much as we can without compromising our ability to support client needs. While uncertainty about capital regulation exists, we'll be reviewing buyback decisions on a quarter-by-quarter basis. Our current situation gives us flexibility and the opportunity to increase buybacks as conditions allow. We will take action based on optimal situational analysis.

Our next question is from Erika Najarian at UBS. Please unmute your line and ask your question.

Hi, good afternoon. Given the emerging skepticism about revenue targets and the fact that you have expenses declining, how are you balancing buybacks and revenue growth? How do you approach this, given the voice demand for buybacks at Citi versus other money center peers? Can you also give us a sense of what card late fees are and how that would impact the $80 billion to $81 billion for the year, if we do get an earlier implementation?

We are focused on long-term growth while managing our short-term financials for buybacks. We aim to keep investing in our franchise for sustainable growth, which requires balancing capital use against returns for shareholders. Regarding late fees, we haven't disclosed the exact dollar amount. However, we have factored it into the $80 billion to $81 billion projections, and it’s within the guidance range we've provided for top-line revenues for the year.

Keep in mind that 85% of our credit card portfolios are prime. For clients who are in the lower FICO bands, we have been implementing mitigating actions to protect their financial well-being while adjusting strategies as needed. We want our customers to pay on time and provide them with alternative payment methods.

Our next question is from John McDonald at Autonomous Research. Your line is open. Please go ahead.

Thanks. Mark, could you give us some color on your outlook for credit card charge-offs? You maintained the outlook for the year, mentioning higher ranges for retail services. Do you still predict a peak for this year, and how will metrics like delinquency formation inform this view?

We have actively managed this portfolio. Continued growth and interest earnings reflect a resilient environment. The range for branded cards is still on track. Losses in the retail services area can be viewed through a seasonal lens, as they tend to peak in the first two quarters. However, I anticipate some normalization in 2025, even as we monitor unemployment, inflation, and other macroeconomic factors.

Our next question is from Ken Usdin at Jefferies. Your line is open. Please go ahead.

Can you discuss cost of credit, given the recent build we saw in card-related reserves this quarter? How do you see reserve builds evolving and what informs your outlook for that?

The reserve builds go with various factors, such as macroeconomic outlook. Our current unemployment assumption is around 5%, which is critical to monitor. The high reserve levels indicate that we are prepared for rigid economic conditions, but we feel confident in our current loan portfolio mix. The majority of our exposure remains in the investment grade category. In terms of TTS, we have seen impressive NII related to TTS due to rising rates. We expect some fluctuations, but we should see continued growth as we drive strategic initiatives and enhance client relationships.

Our next question is from Vivek Juneja at JP Morgan. Your line is open. Please go ahead.

Can you provide updates on how you've benefited from NII, particularly in Argentina, and the sustainability of these benefits?

The benefit you see from Argentina stems from our institutional client relationships. There are various activities involved with the TTS segment for liquidity management and custody. While there are considerable advantages from the recent valuations, sustainability will depend on the market and regulatory environment.

Our next question is from Scott Siefers at Piper Sandler. Your line is open. Please go ahead.

Mark, can you provide an update on your rate positioning, especially considering the divergence of global rate trajectories?

We expect the guidance of $80 billion to $81 billion to remain intact. In terms of interest rate sensitivity, we've provided scenarios within our 10-K. That outlines our asset sensitivity; rates up will increase our NII performance. However, our positioning is neutral for U.S. dollars with non-U.S. dollars maintaining sensitivity.

Our next question is from Gerard Cassidy at RBC Capital Markets. Your line is open. Please go ahead.

Mark, can you discuss credit quality on the corporate side? With spreads narrowing on high-yield corporate debt, do you see any concerns about underwriting standards weakening?

We see good demand for corporate credit. We maintain strict discipline with a focus on investment-grade clients. We're making informed decisions about where to play, useful in light of recent events, which helps us support good credit quality to mitigate risk.

Overall, our clients have healthy balance sheets, and we see market access gradually returning for quality issuers, leading to well-oversubscribed deals, aiding in financing needs. We recognize geopolitical risks but maintain confidence in our strategies.

Our next question is from Matt O'Connor at Deutsche Bank. Your line is open. Please go ahead.

Could you elaborate on the regulatory processes and data upgrades you are implementing and any meaningful financial impacts? Thank you.

Our transformation is our top priority, foundational to our success. We are deeply involved in a significant upgrade project focusing on our data architecture, automating and consolidating tech platforms. While these changes address compliance goals, they also enhance business performance in the long run. This transformation is resource-intensive, yet absolutely necessary.

The intensity in our operations reflects our efforts to shore up regulatory processes, enhance controls, and ensure that we effectively manage our assets. We’ve incorporated feedback from external scrutiny and are focused on meeting and exceeding regulatory expectations.

Our next question is from Saul Martinez at HSBC. Your line is open. Please go ahead.

Is there an update on the Mexican IPO, and with a possible transition in government, are you still focused on the IPO path, or is sale back on the table?

Our main priority is a successful IPO for Banamex, which we believe is in our shareholders' best interests. We're on track with this and made significant progress in the separation processes this year. While elections are upcoming, we're firmly committed to the IPO path. We'll monitor the political landscape but aren't deviating from our current strategy.

Our next question is from Chris Kotowski at Oppenheimer. Please go ahead.

Mark, you previously mentioned bending the cost curve between the third and fourth quarter. Has it happened sooner, or should we expect to see more adjustments later in the year?

It is on a downward trajectory through the end of the year. Yes, we're intending to finalize our guidance of between $53.5 and $53.8 billion. You can expect reductions aligning with that as we move forward.

Our next question is from Steven Chubak at Wolfe Research. Your line is open. Please go ahead.

Just looking towards DFAST and SCB, are there any factors that could result in greater SCB volatility, specifically due to ongoing transformations?

The macro situation impacts what we can expect for SCB, but we are actively assessing our strategy transformations and the business model. We expect our focus on predictable revenue streams enhances our positioning for stress tests and SCB assessments going forward.

Our next question is from Mike Mayo at Wells Fargo. Your line is open. Please go ahead.

A follow-up regarding TTS. You mentioned growth in operational deposits. What gives you such confidence about this growth?

Our confidence comes from the focus we maintain on existing and new clients. We're working to deeply penetrate the commercial middle-market segment and strategically position our offerings to provide valuable relationships, as well as seeking new clients. It's this holistic approach that drives our optimism.

Additionally, substantial investments in product innovation have also contributed to strong operating deposits and our continued growth as a customer-centric institution.

This concludes the Citi First Quarter 2024 Earnings Call. You may now disconnect.