Matt O’Connor: Hi. I want to follow-up on the Russia exposure on page 34. Looks like you guys have taken a really good whack on the vet investment, and you also highlight how this CTA would be capital neutral you know if you’re going to write that down. But what about the remaining exposure and just like how frame — are you responsible for some of these unremidable corporate dividends. I just don’t — I think a lot of us don’t understand that type of exposure? And is there a risk to you going forward? Or did you hope for clear the deck from the fund exposure going forward?
Jane Fraser: Yeah. And actually, I also want to kind of take a bigger picture answer to that before I turn it to Mark because I would have thought there’s a question that is on everybody’s mind, particularly given the firm’s overall low level of returns and our headline numbers is this quarter about the — what we’ve been doing with Russia and Argentina. So the bigger strategic question behind it, and then we’ll get to you on specifics on the Russia front. If you think about Citi, we have a differentiated global business model, and that means we’re committed to the countries in which our multinational clients operate over the long run. So that means we hold long-term capital in those countries upon which we generate solid returns through the cycle.
And if we just point to our leading services and FX businesses are the heart of that network and they’re generating double-digits, as you can see. With that footprint comes a set of risks. So I think in terms of credit currency transferability of capital. And we’ve proven our ability to manage those risks consistently over a long period of time. And with respect to the Q4 currency and transfer items, while the timing was unknown and we’ve highlighted those risks in our disclosures for a couple of years. I’d say Russia is rather unique. It’s a wall and for us, a highly unusual liquidation. We’ve navigated it very well. We’ve executed our wind down in an orderly way with very low losses for our clients and very low losses for us. Our remaining net assets are now 100% reserved against, and I think similarly, if I just touch on Argentina for a minute because I’m sure folks have got a few questions on that.
Similarly, over the last several years, we de-risked our business model there. We don’t have a consumer bank, so we’ve really reduced our emerging market exposures to just our institutional presence focused on the multinational clients. You’ve heard us talk about that and select high-grade local clients. Look at Argentina, it’s a very good business for us over the cycle. And even after the impact of Q4, we had less than $5 million in credit losses in Argentina over a 10-year period. That’s remarkable, $5 million over 10 years. In terms of the currency risk, we all have to book revenues the official rate versus the parallel market rate. We were able to partially, but not fully hedge the exposure, but we will certainly always take economic decisions on the business we do and did mindful of likely devaluations and capital controls.
And the reserve is a reserve, it centers on the ability to convert and transfer capital as per US banking rules. So I just want to put part of the things of this quarter into that context, we have a global business model. It’s heavily focused on high-grade multinational clients. Our track record for managing the various risks associated with our global network has been very strong. And I think you’re seeing us with a very conservative and a reserve profile. Mark, what would you add?
Mark Mason: Yeah, very quickly on the Russia point, as you know and as the slide points out, we continue to bring our exposure down there. It’s down to $6.5 billion, it’s down 13% from the previous year. And a third from 2021, we brought down the consumer loans, the consumer deposits in a significant way there. And essentially, what’s left in — is that we have a custody business and we are holding corporate dividends that are our clients’ proceeds. We’re unable to pay those out by law by regulation. And so we have to hold those and that’s what’s being referenced in the slide where we say unremitdable Russia corporate dividends. And so that is not a risk that — of loss for us, but we’re unable to kind of clear those because of the state of play in Russia at this stage.
Matt O’Connor: Okay. That was clear. And then just separately, in credit card, you and a lot of your peers expect losses to go up from here, but most seem to be things that repeat this year, including you. And just what gives you confidence that the card losses will peak this year as you just getting back to that a little bit above normalized level, is it some tightening that you’ve done? What’s driving that confidence looking out this year because there’s obviously a step-up coming still, right?
Mark Mason: Sure. There’s a step-up coming. We give a forecast when ’23 as you point out to what the full year estimate for NCLs will be for both branded and for retail services. What I’d point out is you can see actually on the slide how there was a dip in loss rates during the COVID period. And so to some extent, what we’re seeing is kind of a catch-up of those as those portfolios go through a longer maturation than what you’d normally see in our cards portfolio. On top of that, we’ve been originating new card, you’ve noticed our acquisitions have grown, so we obviously have new card loans and those are going through a much more normal maturation period. And so as we look at kind of the early buckets and the delinquencies that are playing out, we’ve got a pretty good sense for when we would expect those to peak and at what level.
