Citi 1Q profit falls 46% as virus hits US, global customers
NEW YORK (AP) — Banking conglomerate Citigroup says first-quarter profit dropped 46% as it set aside billions to cover potentially bad loans. Citi set aside $7.03 billion for loan losses this quarter, up from $1.98 billion in the same period a year earlier. Citi is a large credit card issuer, focused primarily on consumers who keep and revolve a balance. Those customers are now at greater risk of default because many of them have lost their jobs. Citi also has a large international banking franchise and lends to companies around the globe, and some could default on their loans as business dries up.
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