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    Saul Martinez • HSBC

    Saul Martinez's questions to US Bancorp (USB) leadership

    Saul Martinez's questions to US Bancorp (USB) leadership • Q2 2025

    Question

    Saul Martinez pointed out that rising short-term borrowing and long-term debt costs had a larger impact than deposits on funding expenses and asked for an explanation. He also inquired about the outlook for the payments business, particularly corporate payments.

    Answer

    Vice Chair & CFO John Stern clarified that the spike in short-term borrowings was a temporary measure to fund securities purchases ahead of a loan sale closing and will reverse in Q3, benefiting NIM. On payments, he expects corporate spend headwinds to continue in Q3 before abating, with strong sales pipelines driving future growth. President & CEO Gunjan Kedia added that new leadership is executing transformative strategies in the payments division.

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    Saul Martinez's questions to US Bancorp (USB) leadership • Q1 2025

    Question

    Saul Martinez from HSBC noted that the bank's medium-term asset and NIM guidance implies a 2027 NII figure significantly above consensus and asked for a reaction.

    Answer

    CFO John Stern responded that the slide is intended to provide a path for NIM evolution, not a specific NII forecast for 2027. He emphasized the path is based on mechanical asset repricing, remixing, and deposit optimization, assuming an upward-sloping curve, but acknowledged that forecasting that far out is difficult.

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    Saul Martinez's questions to US Bancorp (USB) leadership • Q4 2024

    Question

    Saul Martinez asked how U.S. Bank differentiates itself in the highly competitive merchant acquiring space and how it measures success, questioning if the business's value is primarily its contribution to the broader franchise. He also asked for a reminder of the expected through-the-cycle deposit beta.

    Answer

    CEO Andy Cecere reiterated that differentiation comes from the 'interconnectedness' of payments and banking, allowing them to offer embedded solutions in key verticals like healthcare. Success is measured by profitable revenue growth. President Gunjan Kedia added that the bank's large distribution franchise is a key competitive advantage. CFO John Stern reconfirmed that the through-the-cycle deposit beta is expected to land around 50% or slightly higher.

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    Saul Martinez's questions to Goldman Sachs Group Inc (GS) leadership

    Saul Martinez's questions to Goldman Sachs Group Inc (GS) leadership • Q2 2025

    Question

    Saul Martinez asked what the significant dividend increase implies about the firm's view of its core earnings power and what drove the strong outperformance in advisory revenue this quarter.

    Answer

    Chairman & CEO David Solomon stated that the firm has 'enormous core earnings power' and a more durable revenue base, which supports a sustainably growing dividend. On the advisory performance, he attributed the strong quarter to the strength of the long-standing franchise but cautioned that while they expect to maintain a leadership position, the specific level of outperformance seen this quarter should not be extrapolated to every single quarter.

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    Saul Martinez's questions to Goldman Sachs Group Inc (GS) leadership • Q1 2025

    Question

    Saul Martinez followed up on RWA progression, noting the low RWA density and asking for an outlook. He also asked about the updated full-year tax rate guidance of 21%.

    Answer

    Executive Denis Coleman explained the firm actively manages RWA density by shifting out of high-density exposures like HPI and into lower-density activities like private wealth lending. He also confirmed the full-year tax rate guidance is approximately 21%, accounting for Q1 results and the current outlook.

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    Saul Martinez's questions to Goldman Sachs Group Inc (GS) leadership • Q3 2024

    Question

    Saul Martinez of HSBC inquired about the long-term margin potential for the Asset & Wealth Management segment, asking if it could exceed 30%, and questioned the firm's capital management strategy amidst regulatory uncertainty.

    Answer

    CFO Denis Coleman stated that after reaching the mid-20s pretax margin target, the firm will seek further improvement through scale and efficiencies, while balancing margin gains with long-term investments. Regarding capital, he affirmed that the current 90 basis point buffer is appropriate to manage uncertainties, support client opportunities, and continue returning capital.

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    Saul Martinez's questions to Citigroup Inc (C) leadership

    Saul Martinez's questions to Citigroup Inc (C) leadership • Q2 2025

    Question

    Saul Martinez of HSBC asked about the path to higher returns in the U.S. Personal Banking (USPB) segment, noting that the current 11% ROTCE is low for a cards-heavy business and questioning what impediments remain.

    Answer

    CEO Jane Fraser stated the goal for USPB is a mid-teens, then high-teens ROTCE. She outlined a clear path to higher returns driven by revenue growth from new products like the Strata Elite card, expense efficiencies from transformation and AI investments, and improved capital deployment. She also highlighted the strategic importance of the retail bank as a feeder for the Wealth business and noted the upcoming benefit from the Barclays portfolio acquisition next year.

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    Saul Martinez's questions to Citigroup Inc (C) leadership • Q2 2025

    Question

    Saul Martinez of HSBC asked about the U.S. Personal Banking (USPB) segment's 11% ROTCE, noting it seems low for a cards-focused business, and inquired about the path to achieving higher returns.

    Answer

    CEO Jane Fraser stated the goal for USPB is to reach mid-teens, then high-teens ROTCE. The path to higher returns involves revenue growth from new products, expense reduction as elevated transformation costs abate, and improved capital efficiency. She highlighted the strength of the cards portfolio and the strategic role of the retail bank as a feeder for the Wealth business, noting the future benefit from the Barclays portfolio acquisition.

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    Saul Martinez's questions to Citigroup Inc (C) leadership • Q1 2025

    Question

    Saul Martinez asked for clarification on the 2026 expense target following a recent accounting change and inquired about the drivers and durability of the impressive net new asset growth in the Wealth Management division.

    Answer

    CFO Mark Mason confirmed that the 'less than $53 billion' expense target for 2026 could be adjusted down by the ~$400 million reclassification. CEO Jane Fraser attributed the strong wealth performance to Andy Sieg's strategy of focusing on net new investment assets from existing and new clients. She highlighted the strength of the team, investments in client experience, and Citi's position as a destination of choice for global wealth advice, suggesting the momentum is durable.

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    Saul Martinez's questions to Citigroup Inc (C) leadership • Q4 2024

    Question

    Saul Martinez questioned the 'up modestly' outlook for NII ex-markets, noting the Q4 run-rate seems to suggest more upside, and asked about the expected quarterly trajectory. He also asked for more detail on the drivers of the sharp expense reduction forecasted for 2026.

    Answer

    CFO Mark Mason clarified that 'up modestly' for NII ex-markets means approximately 2-3% growth, driven by loan and deposit volume growth offsetting rate headwinds. For the 2026 expense reduction, he pointed to four key drivers: a normalization of severance costs from an elevated $600 million in 2025 to a more typical $300 million, a reduction in stranded costs from legacy franchises, increased productivity savings from prior investments, and benefits from transformation spending beginning to materialize.

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    Saul Martinez's questions to Citigroup Inc (C) leadership • Q3 2024

    Question

    Saul Martinez questioned the Banamex exit strategy given Mexico's deteriorating macro backdrop and asked for context on how far current credit costs are from 'normalized' levels for U.S. cards.

    Answer

    CEO Jane Fraser stated the 'North Star' for the Banamex IPO is maximizing shareholder value, and they will wait for appropriate market conditions. CFO Mark Mason declined to give specific 2025 credit guidance but noted improvement will come from top-line growth and the normalization of credit as multiple loan vintages mature.

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    Saul Martinez's questions to Wells Fargo & Co (WFC) leadership

    Saul Martinez's questions to Wells Fargo & Co (WFC) leadership • Q1 2025

    Question

    Saul Martinez inquired about the outlook for the auto business, given spread compression and the competitive landscape, and asked about the performance of the equities trading business, noting its flat year-over-year results compared to peers.

    Answer

    CFO Mike Santomassimo explained that auto loan spread compression was driven by a strategic shift to higher FICO borrowers. He expects the business to improve returns through partnerships like Volkswagen and by becoming a more full-spectrum lender, though growth will remain disciplined. Regarding equities, he stated the business is not comparable to larger peers due to its smaller prime brokerage and domestic focus. CEO Charlie Scharf added that the markets team has done an 'amazing job' building the business without the luxury of balance sheet.

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    Saul Martinez's questions to Wells Fargo & Co (WFC) leadership • Q4 2024

    Question

    Saul Martinez of HSBC asked if there are remaining operational or cultural constraints, such as a risk-averse culture, that need to be addressed to fully unlock growth potential once the asset cap is removed, questioning if the 'shackles' need to come off.

    Answer

    CEO Charlie Scharf rejected the 'shackles off' framing, emphasizing that the company's approach to growth is and will remain deliberate, controlled, and disciplined. He stated that expansion only occurs where they have full confidence in the underlying risk frameworks and processes, and that future growth will be a continuation of this linear, piece-by-piece approach, not a sudden, material change.

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    Saul Martinez's questions to American Express Co (AXP) leadership

    Saul Martinez's questions to American Express Co (AXP) leadership • Q4 2024

    Question

    Saul Martinez asked for more detail on the international business, including the drivers of its strong growth, momentum in merchant acceptance, and the sustainability of its trajectory.

    Answer

    CEO Stephen Squeri expressed high confidence in the sustainability of international growth. He highlighted rapid progress in merchant acceptance, now at 80% coverage in key markets. The primary growth drivers are strong card acquisition and a nascent but growing SME business. With low market share (under 6% in top 5 countries), he expects double-digit billings growth to continue, consistent with pre-COVID trends.

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    Saul Martinez's questions to American Express Co (AXP) leadership • Q3 2024

    Question

    Saul Martinez of HSBC asked for the key building blocks for Net Interest Income (NII) heading into 2025, considering factors like the interest rate environment, deposit dynamics, and revolve rates.

    Answer

    CFO Christophe Le Caillec detailed that the impact of Fed rate changes on NII is small due to the company being only slightly liability-sensitive. He expects loan volume growth to moderate as the post-pandemic balance rebuild stabilizes. Key positive drivers for yield include a continued funding mix shift towards lower-cost high-yield savings accounts and ongoing pricing optimization.

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    Saul Martinez's questions to Truist Financial Corp (TFC) leadership

    Saul Martinez's questions to Truist Financial Corp (TFC) leadership • Q4 2024

    Question

    Saul Martinez sought to clarify the full-year revenue guidance, confirming that the low single-digit fee growth implies a higher growth rate for Net Interest Income (NII). He also asked about the expected new money yields on the $42 billion of fixed-rate loans set to reprice.

    Answer

    CFO Mike Maguire confirmed the interpretation, explaining that headline fee growth is muted by the non-recurrence of fees from the TIH sale and Sterling Capital sale. Excluding these, core fee growth would be mid-single-digits. He also stated that the run-on yield for repricing fixed-rate loans is expected to be 100 basis points or better than the runoff yield.

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