2024-07-12 16:26:03 ET
Citigroup Inc. (C)
Q2 2024 Earnings Conference Call
July 12, 2024, 11:00 AM ET
Company Participants
Jenn Landis - Head, Investor Relations
Jane Fraser - Chief Executive Officer
Mark Mason - Chief Financial Officer
Conference Call Participants
Mike Mayo - Wells Fargo
Glenn Schorr - Evercore
Jim Mitchell - Seaport Global
Erika Najarian - UBS
Gerard Cassidy - RBC
Ken Usdin - Jefferies
Betsy Graseck - Morgan Stanley
Vivek Juneja - JPMorgan
Matt O'Connor - Deutsche Bank
Saul Martinez - HSBC
Steven Chubak - Wolfe Research
Presentation
Operator
Hello, and welcome to Citi's Second 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'll 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.
Jenn Landis
Thank you, operator. Good morning, and thank you all for joining our second 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.
Jane Fraser
Thank you, Jenn, and good morning to everyone.
Before I discuss the results of the quarter, let me first address the regulatory actions by the Federal Reserve and the Office of the Controller of the Currency, which were announced on Wednesday. These actions pertain to the consent orders we entered into with both agencies in 2020. And those orders covered four primary areas: risk management, data governance, controls, and compliance. Addressing these areas is the primary goal of our transformation, our number one priority. It is a multi-year effort to modernize our infrastructure, unify disparate tech platforms, and automate processes and controls.
This week's actions focused primarily on data quality management. We've been public this year about the fact that we were behind in this particular area and that we had increased our investment as a result. The regulatory actions consisted of two civil money penalties and under the amended consent order with the OCC, a new process designed to ensure we're allocating sufficient resources to meet our remediation milestones and that is called the Resource Review Plan. We are currently developing a plan for submission to the OCC.
Now by way of background, while the Federal Reserve is the primary regulator for Citigroup, our bank holding company, the OCC is a primary regulator for Citibank, N.A., we call it CBNA, which is our largest banking vehicle with approximately 70% of our assets. The amended consent order with the OCC allows CBNA to continue paying to Citigroup at a minimum the dividends necessary for debt service, preferred dividends and other non-discretionary obligations. While we're developing and seeking OCC consent for our Resource Review Plan, dividend amounts above that would require the OCC's non-objection....
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Citigroup Inc. (C) Q2 2024 Earnings Call Transcript