Citigroup Q3 earnings call observations

Good morning...our bank earnings call reviews continue.

Slowing global growth. Rolling, country-level recessions starting in this quarter.
Inflation causing global reduction in consumer demand.
Europe is the highest warning. US market looks strong. Inflation fighting will take time and strong actions, through second half of 2023.
Asia: concerned with COVID lockdowns. 
Geopolitical risks and rates dominate client discussions. Counterparty risk vs. credit risk.

Impressive reserves of about 2.5% funded loans.
CET1 equity levels are equal to regulatory requirements, at 12.2%.
Citigroup benefits from spinning off global consumer business.
Stock buybacks at 13%? Asked by an analyst. Mile-markers:


Net interest income is strong (seems in line or slightly lower than other banks in Q3.
Non-interest revenue is down significantly.
Credit costs
BETA levels are increasing, but lower than expected. This is driven by mix of business towards institutional and operational / corporate, as opposed to retail BETAs which are lower.

Interesting to see that average loans and deposits are both down 2%. 

Also surprising to see cost of interest-bearing deposits up in Q2/22 0.53% to Q3/22 1.21%. This is a significant gain.

Reducing (slightly) risk-weighted assets (RWA) by exits and asks for greater collateral from investors. Interesting to see this massive bank look to reduce market exposure. Should be confirmed, as this is material.

Net-Net, in Q4, Citigroup expects net interest income to rise, non-interest income to fall, and non-interest expenses to increase by 9%.

When will revenue growth exceed expense growth? These are multi-year investments, and in years, we should get to an operating ratio below 60%. No direct answer, but it will take years to see revenue growth cover expense growth.