Citigroup, Inc.

Hello, and welcome to Citi's third quarter 2025 earnings call. Today's call will be hosted by Jen Landis, head of the 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 third quarter 2025 earnings call. I'm 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, citygroup.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 filing. And with that, I'll turn it over to Jane.

Thank you, Jen, and a very good morning to everyone. This morning, we reported another very good quarter, with net income of $3.8 billion and earnings per share of $1.86. with an ROTCE of 8%. Now, excluding the goodwill impairment from the Banamex transaction, our adjusted EPS was $2.24, with an adjusted ROTCE of 9.7%. Revenues were up 9%, and every business had record third-quarter revenue and improved returns. We continue to generate positive operating leverage for the firm and in each of our five businesses. The consistently strong results that we've been delivering are a consequence of how we have fundamentally changed the bank in recent years. We're running the businesses differently and capturing the synergies between them. We've added new senior leaders to complement the excellent talent we already had. We are disciplined stewards of our shareholders' capital, investing it where we should and returning what we don't deploy. And the best part is, there is much more upside ahead. Turning to the businesses, services had a record quarter with revenues growing by 7%. Leasing growth in cross-border transactions and U.S. dollar clearing reflects the sharp focus we've put on increasing fee revenue. AUCA grew 13%, reaching nearly $30 trillion. New client wins and share gains demonstrate the confidence our clients have in our ability to help them navigate a very dynamic global environment and to lead through innovation. Despite low volatility, markets had a record third quarter. Revenues were up 15% as we continued to drive momentum and traction with clients. Activity in rates was particularly high and equities grew nicely, with continued progress in prime, where balances were up over 40%, complementing our historical strength in derivatives. In banking, increased clarity around tariffs and record equity prices fueled CEO confidence. We capitalized on this with investment banking fees up 17%, with continued growth across all products. On the back of our investment in talent, we improved our position in tech, healthcare, consumer, and with sponsors. We continue to add talent to the team, which will help us deepen or establish relationships that will bear fruit over the next two to three years. Wealth had another good quarter, with revenue up 8%, driven by Citigold and the private banks. Our emphasis on growing investment assets resulted in record net new investment assets of $18.6 billion and client investment assets increasing by 14%. We announced a new partnership with BlackRock, where they will manage $80 billion of our clients' assets, fully aligning to an open architecture strategy. USPB had record quarterly revenue of $5.3 billion, reaching 12 straight quarters of positive operating leverage and delivered an ROTCE of over 14%. We drove momentum in branded cards with the well-received launch of our Citi Strata Elite card. And this quarter, we will introduce the new mid-tier product to round out the Citi Advantage portfolio. It will elevate the travel experience for American Airlines customers and create access to premium benefits. In the retail bank, we continue to innovate, including by the launch of instant payments through FedNow and enabling digital issuance for Citibank debit cards. And the retail bank continues to strengthen as a pipeline to our wealth business, with $4 billion in deposits transferred in the quarter. Wealth. is capitalizing on those transfers, and we continue to see improved investment penetration and significantly higher investment-related revenue from those customers. We returned over $6 billion in capital to our common shareholders during the third quarter. The $5 billion in share repurchases was $1 billion more than we guided, and this reflects our commitment to returning capital. Year-to-date, we have repurchased $8.75 billion of shares as part of our $20 billion repurchase plan. We ended the quarter at a common equity Tier 1 capital ratio of 13.2%, over 100 bits above our regulatory requirement at quarter end. The agreement with Fernando Chico Pardo to purchase a 25% equity stake is a very significant step towards the divestiture of Banamex. and progresses the overall timeline to deconsolidation and beyond. We are confident that this path is in the best interest of our stakeholders in terms of certainty and value, and we could not be more pleased to have Fernando with his proven track record for investors as our partner. As we simplify, we continue to invest in technology to catalyze our transformation and become a more agile and modern bank. We have been relentless in our execution, and it is creating results. Over two-thirds of our transformation programs are at or close to our target state. and we're making very good progress in the remaining areas. I'm particularly pleased with the improvement in our controls this year through standardizing, automating, and digitizing them. We continue to lead in digital payments innovation, enabling payments, clearing, and settlement capabilities to operate on an always-on basis across multiple borders and currencies. As networks evolve towards an always-on future, we are taking the next step by integrating Citi Token services with our 24-7 clearing platform. Now, this integration will allow Citi clients to seamlessly send funds to third-party banks real-time within our U.S. dollar clearing network. And that's delivering true interoperability across more than 250 institutions. We are committed to embedding AI into how we work. Nearly 180,000 colleagues in 83 countries now have access to our proprietary AI tools and have used them almost 7 million times this year. These tools save hours each day by automating routine work, analyzing data, and creating materials in minutes instead of hours. Our services and USPB teams are using AI to resolve client inquiries faster. In wealth, advisors are gaining real-time insights that help them deliver more personalized advice. And AI-driven automated code reviews have exceeded 1 million so far this year and are dramatically improving our developers' productivity. This innovation alone saves considerable time and creates around 100,000 hours of weekly capacity as a very meaningful productivity uplift. In September, we launched a pilot of Agentic AI for 5,000 colleagues. It allows complex multi-step tasks to be completed with a single prompt. And the early results are very promising and will expand access to this in the months ahead. Finally, we have launched a firm-wide effort to systematically embed AI in our processes end-to-end to drive further efficiencies, reduce risk, and improve client experience. Taking a step back, the macro environment reflects the global economy that's proved more resilient than many anticipated. The U.S. continues to be a pacesetter, driven by consistent consumer spending, as well as tech investments in AI and data centers. That said, there are pockets of valuation frothiness in the market, so I hope discipline remains. But overall, while growth is cooling somewhat and we're keeping an eye on the labor market, America's economic engine is indeed still coming. In Asia... China's domestic spending has slowed. However, the investments they are making in technology are staggering and the world should take notice. India's fundamentals of a young, tech-savvy labour force and robust domestic consumption continue to drive high growth there. But in Europe, structural challenges still need to be dealt with for the continent to escape this low growth cycle. One certainty through all of this is our commitment and ability to serve our clients with excellence no matter what challenge they face. As you can see, the steady and disciplined execution of our strategy is delivering better business performance quarter after quarter and improving our returns. The cumulative effect of what we have done over the past years, our transformation, our refreshed strategy, our simplification, have put Citi in a materially different place in terms of our ability to compete. We know success isn't linear, but I am so proud of the progress our people have made and how things are coming together. We intend to end the year with momentum into 2026 as we close in on our medium-term return target. In terms of what will come next, we very much look forward to sharing that with you at our next Investor Day, which will be on May 7th of next year. There is still so much upside left for us to capture, and we look forward to laying out how we are going to do it. With that, I'll turn it over to Mark, and then we'll be happy to take your questions.