Citigroup Profit Slides 46% Amid Coronavirus Fallout
April 15 2020 - 8:52AM
Dow Jones News
By David Benoit
Citigroup Inc. said Wednesday its first-quarter profit plunged
46%, after the bank set aside nearly $5 billion to prepare for a
wave of loan defaults as the coronavirus pandemic pummels the
global economy.
Citigroup's profit for the first three months of the year fell
to $2.52 billion, or $1.05 per share, from $4.71 billion, or $1.87
a share. Analysts had expected $1.07 a share, according to FactSet,
a forecast that has been cut in half since late February.
Revenue rose 12% to $20.73 billion, compared with $18.58 billion
a year earlier and the $19.03 billion analysts expected.
The revenue gains were powered by Citigroup's investment bank,
which benefited from the volatile markets to post a strong quarter
in trading.
Citigroup increased its loan loss provision, money for loans it
now thinks can go bad, by $4.92 billion, from just $278 million in
the prior quarter, partly reflecting an accounting change as well
as concerns about the economy. Of that, $2.85 billion came in the
consumer bank and another $1.88 billion in the corporate bank. Its
total provision in the quarter was $7 billion.
Write to David Benoit at david.benoit@wsj.com
(END) Dow Jones Newswires
April 15, 2020 08:37 ET (12:37 GMT)
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