Mark Mason: I’ll take it. I’ll take that.
Jane Fraser: Damn. I wanted that one.
Mark Mason: I’ll take that. I mean I’ll take the win, a downward trajectory from here through the end of the year in-line with the guidance of $53.5 billion to $53.8 billion. And so yes.
Operator: Our next question is from Steven Chubak at Wolfe Research. Your line is open. Please go ahead.
Steven Chubak: Hi, good afternoon. So Mark.
Jane Fraser: Hello, Steven.
Steven Chubak: Hi, Jane. Hi, Mark. I did want to ask on DFAST and SCB, just recognizing this will be the last opportunity before the results come out. The macro scenario Fed assumptions look quite similar to last year, but just given the significant transformation that’s underway, repositioning actions which [admittedly] (ph) depressed earnings last year. I want to get a sense as to whether there are any [IDEO] (ph) factors that could result in greater SCB volatility in the coming exam and just broader thoughts on the longer-term trajectory for the SCB, just given the Org simplification efforts are underway.
Mark Mason: Yes, Steven. The first part of your question is just impossible to answer, to be candid with you, right? We obviously have an internal base scenario we’ve run. We have a severely adverse scenario that we’ve run. We’ve provided a balance sheet as part of the submission, but ultimately, the regulators have to run through their models, the information that we’ve provided and that informs what happens with the stress capital buffer. And we don’t have as much transparency to that as we’d like. And so really hard to call at this stage. The second part of your question, I think is spot on, and I kind of alluded to in my prepared remarks, in that we have the medium-term targets that we’ve set. And we’re still in the midst of kind of the execution of our strategy, the evolution of the business mix and the business model.
The mix towards more consistent, predictable, and repeatable revenue streams that would impact PPNR, the simplification which obviously plays through an expense base that will be lower, when we get to that medium term period. So all of those things, the divestitures and kind of what that means and how that might impact the G-SIB score and the like, and the freeing up of capital, which we’ve already freed up, you know, $6 billion or so. And so all of those things have kind of yet to have been factored in. And we believe will be beneficial to the SCB over the medium term.
Operator: Our next question is from Mike Mayo at Wells Fargo. Your line is open. Please go ahead.
Mike Mayo: Hi. A follow-up, Mark. You said, TTS, we said — we will have growth and operational deposits. And I was just wondering what gives you such confidence that you will or is that accelerating or the same pace or what?
Mark Mason: We have seen growth in the quarter, in operating deposits. The confidence comes from the focus that we’ve had with our existing clients, as well as the growth we’ve seen with new clients, doing more with existing and more countries, more deeply penetrating the commercial middle market space. And so we’ve been very thoughtfully focused on deposits that obviously give us the most value and also provide the most stickiness, as it relates to that relationship. And so yes, the confidence is rooted in what we’re seeing in the way of underlying operating deposit growth, including inside this quarter.
Jane Fraser: It’s also a lot of the investments that we’ve been making, fuel a lot of the growth we’ve got. We have a market leading product innovations and those continue to drive good returns, good growth. If it’s Citi Token Services, Citi Payment Express, 24/7 — all of these different elements really mean that this business is utterly invaluable and indispensable to our clients. And the stickiness of the deposits, and the operating deposits comes with that. So we feel good about that growth. And you’ll hear more about this as well, Mike, in the Investor Day in mid-June, which will be, I think we hope will be very helpful to everyone, so you really get your arms around how this business operates, makes money and see why we call it a crown jewel.
Operator: Our next question is from Vivek Juneja at JPMorgan. Your line is open. Please go ahead.
Vivek Juneja: Hi, Mark. A completely different topic because I think I understood your answer to be just for my previous question to be the tax benefits, so we’ll leave it at that. I don’t know, if it is different, then I need to go down that path. But the question I signed on to ask was, you talked about the percentage of revolvers increasing from transactors in the private label and the retail partner cards. What is that percentage and how does it compare with what it was pre-pandemic?
Mark Mason: Yeah, I don’t — we haven’t broken down the transactor versus revolver mix, and so I’m not going to get into that. I will say that the revolver levels are at least back to where they were pre-pandemic and leave it at that. But we are seeing kind of continued revolver activity which you’d expect kind of given the way the cycle has evolved and given payment rates have started to moderate and the stimulus has kind of unwound and so all of that is kind of consistent with expectations but obviously is a factor in reserve levels as I mentioned earlier.
Operator: Our final question is from Betsy Graseck at Morgan Stanley. Your line is open. Please go ahead.
Betsy Graseck: Hi. Thanks so much. I just wanted to make sure of one thing on the expenses. I know in the past you’ve talked about the fact that 1Q will be a little elevated with the restructuring, and you showed that was the $225 million in the quarter. And then when we look to 2Q, should we still be expecting a step down in 2Q? And is that step down just the elimination of the $225 million? Or is there some restructuring that we’re likely to see in 2Q as well? In other words, should I just fade sequentially 2Q, 3Q, 4Q to hit your annual number? Or is there a bigger step down in 2Q that I should still be expecting here, thanks.
