Citigroup Braces for Loan Losses, Sets Aside Hundreds of Millions of Dollars for Potential Downturn Amid Tough Macro Environment: Report

The financial giant Citigroup Inc. is reportedly bracing for loan losses amid macroeconomic uncertainty. To deal with the potential losses, the investment bank is planning to put aside hundreds of millions of dollars more than it did in the previous quarter, Bloomberg reports . While speaking at a Morgan Stanley conference this week, Vis Raghavan, Citigroup’s head of banking, reportedly cautioned that the firm’s credit reserve build can change its outlook rapidly. “Given the macro environment, etc., cost of credit compared to last quarter, we expect to be up a few hundred million.” Bloomberg also reports, however, that analysts expect loan losses to go down in the second quarter. Raghavan said 80% of Citigroup’s corporate exposure is to entities with high creditworthiness. “We still have a few more weeks to go in this quarter, but on the credit overall, I’m incredibly reassured of the quality.” The executive reportedly notes, however, that the firm’s investment banking business has been hurt by the ongoing macroeconomic uncertainty. “What investment banking likes is clarity. So either it’s really bad or really good, whatever it is, just give us the news, but it is that middle area of not knowing that really freezes market activity.” Follow us on X , Facebook and Telegram Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox Check Price Action Surf The Daily Hodl Mix Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing. Generated Image: Midjourney The post Citigroup Braces for Loan Losses, Sets Aside Hundreds of Millions of Dollars for Potential Downturn Amid Tough Macro Environment: Report appeared first on The Daily Hodl .