Citigroup (C) Barclays 22nd Annual Global Financial Services Conference 2024 summary

Macroeconomic and industry outlook

• Global growth in the first half was 2.5%, slightly below last year but resilient amid ongoing uncertainty.

• Inflation pressures are easing, with expectations for central banks to lower rates by 75 basis points by year-end and further reductions into 2025.

• Europe faces competitiveness challenges, while China’s consumer sector remains soft; Mexico and India are bright spots.

• Corporate and consumer balance sheets remain strong, supporting a relatively soft landing.

Client behavior and credit trends

• Corporates are de-risking funding plans amid election and geopolitical uncertainty, with increased focus on sector policy impacts.

• M&A activity has picked up, and investments in AI are a frequent discussion topic.

• Consumer spending is shifting from discretionary to staples, with affluent customers driving spend growth.

• Delinquencies and net credit losses (NCLs) have risen but are stabilizing within expected ranges.

Transformation and regulatory progress

• Ongoing transformation focuses on strengthening risk controls, compliance governance, and data quality.

• Resource allocation is being closely monitored to ensure timely delivery of regulatory commitments.

• Investments in data processes and governance are prioritized for regulatory reporting improvements.