Citigroup increases loan loss reserves due to economic uncertainty, but remains confident in credit quality.

From Yahoo Finance: 2025-06-10 11:44:00

Citigroup Inc. is increasing its loan loss reserves by hundreds of millions of dollars, signaling a cautious approach due to economic uncertainty. The bank’s credit reserve build is driven by macroeconomic indicators and lending volumes, despite expectations of declining loan losses in the second quarter. Citigroup’s provisions for credit losses totaled $2.72 billion in Q1.

Citigroup remains confident in its credit exposure, especially with its corporate clients. About 80% of the bank’s corporate exposure is to high-grade issuers, providing reassurance about credit quality. Shares of Citigroup rose 0.5% to $77.77, up 10% this year. Economists are monitoring US consumer outlook amid trade uncertainty and tax reform.

Citigroup’s equities and fixed-income desks are performing well, with revenue expected to increase in the mid- to high-single-digit percentage compared to last year. Investment banking fees are also projected to rise in the mid-single digits. However, uncertainties in the investment banking unit could impact market activity, as clarity is preferred for market stability.



Read more at Yahoo Finance: Citi to Set Aside More Money for Potential Losses on Loans