Operator: Hello and welcome to Citi's Second Quarter 2012 Earnings Review with Chief Executive Officer, Vikram Pandit and Chief Financial Officer, John Gerspach. Today's call will be hosted by John Andrews, Head of Citi Investor Relations.
We ask that you please hold all questions until the completion of the formal remarks, at which time you will be given instructions for the question-and-answer session. Also, as a reminder, this conference is being recorded today. If you have any objections, please disconnect at this time.
Mr. Andrews, you may begin.
John Andrews - IR: Great. Thank you very much. Good morning, everybody and thank you for joining us this morning. On the call today, our CEO, Vikram Pandit will speak first; then, John Gerspach, our CFO will take you through the earnings presentation which is available for download on our website, citigroup.com. Afterwards, we will be happy to take your questions.
Before we get started, I would like to remind you that today's presentation may contain forward-looking statements which are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results and capital and other financial condition may differ materially from these statements due to a variety of factors, including the precautionary statements referenced in our discussion today and those included in our SEC filings, including without limitation the Risk Factors section of our 2011 Form 10-K.
Now with that said, let me turn it over to Vikram.
Vikram Pandit - CEO: John, thank you, and good morning, everybody and thank you for joining us today. As you know, we reported earnings of $2.9 billion for the second quarter of 2012. Excluding CVA and the loss from the partial sale of our stake in Akbank, net income was $3.1 billion. That amounts to $1 per share.
Overall, I am pleased with our performance in light of the economic environment we faced during the quarter. The investments we've made continue to show encouraging results. Loans and deposits in Citicorp had solid growth. Our market businesses were resilient, despite volatility and we increased market share in investment banking. Revenue in Transaction Services set another record as we leveraged our unique global footprint, especially in trade finance. While our consumer businesses were impacted by the slower economies, we still saw positive operating leverage in both Latin America and Asia, excluding Japan. We're managing our expenses closely and making sure we're right size for the environment we anticipate. Expenses decreased from both the first quarter of this year and second quarter of last year.
For the first half of the year, we had positive operating leverages in each of our core businesses. In Securities and Banking revenues excluding CVA and DVA increased 2% and expenses decreased 5%. In Transaction Services revenues increased 6% and expenses increased 2%. In Global Consumer Banking revenues increased 2% and expenses increased 1%.
More broadly, we've been managing our risk very tightly throughout the organization Citi Holdings assets are now $191 billion or approximately 10% of our total assets as we reduced our legacy assets in Citi Holdings by 9% during the quarter. Citi remains highly liquid with over $400 billion in cash and government securities and our capital levels continue to be among the strongest in the industry.