Operator: Hello and welcome to Citi's First Quarter 2013 Earnings Review with Chief Executive Officer, Mike Corbat and Chief Financial Officer, John Gerspach. Today's call will be hosted by Susan Kendall, 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.
Ms. Kendall, you may begin.
Susan Kendall - IR: Thank you, Regina. Good morning and thank you all for joining us. On our call today are CEO, Mike Corbat 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 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 Factor section of our 2012 Form 10-K.
With that said, let me turn it over to Mike.
Michael Corbat - CEO: Thank you, Susan and good morning, everyone. This morning we reported earnings of $3.8 billion for the first quarter of 2013. Excluding CVA and DVA net income was $4 billion, or $1.29 per share. During the quarter we benefited from seasonally strong results in our markets businesses, sustained momentum in Investment Banking, and continued year-over-year growth in loans and deposits in Citicorp and a more favorable credit environment.
As I said, achieving consistent, high-quality earnings is one of my top priorities and these first quarter results are encouraging. However although this was a good start for 2013 the environment remains challenging and we are sure to be tested as we go through the year ahead. In addition to our performance across business lines there were several other areas that I want to point out. First, our capital strength again improved during the quarter with the Tier 1 common ratio increasing to an estimated 9.3% on a Basel III basis and we now expect the ratio to reach at least 10% by the end of this year. After a very thorough process, we were pleased that our regulators did not object to the capital plan we submitted, and although the requested returns were modest, the permission to do so, which was based on both quantitative and qualitative analysis is meaningful. As I said on my first earnings call it is critical that Citi be viewed as an indisputably strong and stable institution and we made progress towards that goal during the first quarter.
Next as I have highlighted, we have two areas of intense focus for our Company; to reduce the drag on earnings caused by Citi Holdings and to utilize our deferred tax assets. We made progress on both fronts. We reduced our assets in Citi Holdings by $7 billion, Holdings' assets now total just under $150 billion or 8% of our balance sheet. More importantly, the loss in Holdings was reduced to less than $800 million driven by improvement in credit costs, including $375 million reserve release related to North American mortgages. We began utilizing reserves as the mortgage portfolio continues to shrink, credit performance continues to improve and we become more comfortable that the housing recovery is sustainable.