“As we look into the rules, our expectation is that overall there will be a net benefit to Citigroup Inc.”

In context

“ompleting the work is just the beginning of the end. From an investor point of view, you can see the transformation expenses have started to come down as we complete the different bodies of work. This is helping create capacity for investments in AI and other strategic business priorities. At Investor Day, Mike, I will detail the many benefits that we have been gaining from the transformation. Operator: Our next question comes from John McDonald with Truist Securities. Please go ahead. John McDonald: Hi, good morning. Gonzalo, I was wondering if you could give a little bit of a take on the new Basel and GSIB proposals and what they mean for Citigroup Inc. Any initial estimates on the impact if they were approved as proposed? Gonzalo Luchetti: Thank you, John, and good morning to everyone. As we look into the rules, our expectation is that overall there will be a net benefit to Citigroup Inc. You have seen that in the estimates from the regulatory agencies as it relates to the Category 1 and 2 banks, and we see a moderate net benefit on what has been published. Of course, when you look at the full stack with the stress capital buffer, we expect an additional benefit there. Some puts and takes, of course. When you think about RWA and those pieces related to Basel III, you have components of retail and corporate credit providing a benefit, mitigated by operational risk, CVA, and market risk, as you probably would expect. On the other side, on GSIB, even if we probably have feedback for regulators there, at the same time you can see in this case that there is benefit from the reversion to the 2019 methodology as we have been advocating for. John McDonald: So does that result in a”