Citigroup CFO: Certain sector stocks have frothiness in them and likely to level off

Core Insights - The company reported record Q3 revenues across all five business segments, with a 9% increase in topline performance for the quarter and a 7% increase year-to-date [2][3][4] Financial Performance - Investment banking fee revenues increased by 17%, driven by strong M&A, ECM, and DCM activities [4] - The company returned more capital to shareholders, indicating a positive market recognition of its consistent performance [5] Market Conditions - There are concerns about frothy equity valuations in certain sectors, influenced by factors such as tariffs, inflation, and credit environment uncertainties [6] - The company maintains a cautious outlook on credit quality, particularly in light of recent bankruptcies in the auto sector [7] Credit Quality Management - The company has a robust risk appetite framework, focusing on investment-grade credit risk and maintaining reserves of $24 billion, which is 2.7% of the reserve ratio [8][9] - Current credit losses are consistent with expected normalization, and early delinquency indicators show no abnormal stress [10][11]