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Citi says rapidity of rate cuts hurts outlook

Citigroup Inc. walked back its 2019 net interest revenue growth projection slightly in the face of interest rate curve flattening and the prospect of multiple Federal Reserve rate cuts.

CFO Mark Mason said during an investor presentation on Sept. 9 that growth in the bank's net interest revenue this year will be "closer to 3% to 4%." Citi had reiterated its guidance for net interest revenue growth of 4% when it reported second-quarter earnings in July.

Responding to a question about deposit repricing, Mason said, "When you have that many cuts in a short period of time, your ability to impact the pricing and betas is a lot more difficult."

Mason said Citi's 2019 target for return on tangible common equity is still 12%, despite "a fair amount of uncertainty that is out there."

"There certainly is some risk to that 12%," he said. "But that does remain the target."