Trading gains shield Citi as bad loan provisions surge

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Trading gains shield Citi as bad loan provisions surge
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Citigroup Inc on Tuesday posted a 73% plunge in quarterly profit, as the bank set aside nearly $8 billion to brace itself for a potential surge in loan defaults stemming from the COVID-19 pandemic.

FILE PHOTO: A view of the exterior of the Citibank corporate headquarters in New York, New York, U.S. May 20, 2015. REUTERS/Mike Segar/Files

So far Citi, the third largest credit card issuer in the United States, has offered forbearance on 2 million credit card accounts representing 6% of balances, the bank said. Bond trading revenues surged 68%, and also helped offset rock-bottom interest rates that make it harder for banks to earn money on lending.

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