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Citigroup expects less pandemic delinquency

(New York) Citigroup reported slightly better-than-expected third-quarter results on Tuesday, with the US bank setting aside significantly less money to resolve customer arrears than in the previous quarter.

Posted Oct 13, 2020 at 8:52 am

Agence France-Presse

The company's net income fell 34% to $ 3.2 billion compared to the same period in 2019. But adjusted per share and excluding special items, it is $ 1.40, or much better than $ 0.92. that analysts expect.

The decline in net income is largely due to the bank's 7% drop in sales to $ 17.3 billion, higher costs and slightly higher provisions than in the previous year. last to write off the credit cost, the incorporation explained.

But the amount Citigroup set aside in the third quarter to cover any customer delinquencies due to the severe downturn in the economy was $ 2.2 billion, well below $ 7.9 billion. billion dollars from the previous quarter.

"We continue to deal exceptionally well with the impact of the COVID-19 pandemic," the bank's chief executive Michael Corbat said in a statement.

"The cost of credit stabilized, deposits continued to rise," he said.

The revenues of the division for individuals and businesses decreased by 13%, while revenues from relationships with institutional clients increased by 5%.

In particular, brokerage sales rose 16% as financial markets continued to recover from severe tremors with the onset of the spring pandemic.

Citigroup's spending has increased by 5% over the period to account for the $ 400 million fine recently imposed by the US authorities for mishandling the risks, the measures taken to address these and costs specifically related to COVID-19.

The group's share increased by 1.50% in electronic commerce before the opening of the meeting. It's down 43% since the start of the year.

Written by Rahis

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