U.S. earnings: Citigroup reported 1Q 2020 results.
April 15, 2020- Citigroup Inc reported Net Income for the first quarter 2020 of $2.5 billion, or $1.05 per diluted share, on revenues of $20.7 billion. This compared to Net Income of $4.7 billion, or $1.87 per diluted share, on revenues of $18.6 billion for the first quarter 2019, according to Citigroup Inc press release.
- Net Income: $2.5 Billion ($1.05 Per Share), declined 46% from the prior-year period, driven by higher loan loss reserves
- Revenues: $20.7 Billion, increased 12% from the prior-year period
- Loan loss reserves: $4.8 billion increased significantly on a reported basis and in constant dollars. The increase reflects larger loan loss reserve builds related to the impact of changes in Citi’s economic outlook on estimated lifetime losses under the CECL standard.
- Michael Corbat, Citi CEO, said, “Our earnings for the first quarter were significantly impacted by the COVID-19 pandemic. We managed our expenses with discipline and had good revenue performance as the economic shocks caused by the pandemic weren’t felt until late in the quarter. However, the deteriorating economic outlook and the transition to the new Current Expected Credit Loss standard (CECL) caused us to build significant loan loss reserves.
Citigroup shares (KTM: C.N.) fall 6% post Q1 results along with the Bank of America (KTM: BAC.N), and JP Morgan (KTM: JPM.N). All three banks price action paused at the key resistance level.
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