Citigroup profit nearly halves as loan defaults loom

Citigroup Inc reported a 46per cent plunge in quarterly profit on Wednesday as the bank set aside nearly US$5 billion to prepare for an expected flood of defaults on loans due to a virtual halt in economic activity caused by the coronavirus pandemic.

FILE PHOTO: Workers are seen at Citibank offices in the Canary Wharf financial district in London, Britain, November 17, 2017. REUTERS/Toby MelvilleREUTERS: Citigroup Inc reported a 46per cent plunge in quarterly profit on Wednesday as the bank set aside nearly US$5 billion to prepare for an expected flood of defaults on loans due to a virtual halt in economic activity caused by the coronavirus pandemic.

The lender, the most global of the U.S. banks, said net income fell to US$2.52 billion, or US$1.05 per share, in the first quarter ended March 31, from US$4.71 billion, or US$1.87 per share, a year earlier.Earnings per share were also boosted by a 10per cent reduction in shares outstanding. Analysts on average had expected Citigroup to earn US$1.04 per share, according to Refinitiv. It was not immediately clear whether those estimates were comparable to the reported results.

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