Citigroup (c) raises a loan loss clause

Citgroup Inc. (NYSE:c) is one of Best Goldman Sachs Bank Stocks. Citigroup has set aside more money to prepare for the possibility that some customers may struggle to pay off their loans. At a Morgan Stanley meeting, City’s bank director Vis Lagavan said there is a high chance that credit costs will rise in the quarter more than analysts had expected.

The move highlights City’s dynamic provisioning strategy and its balance sheet discipline. Delinquency is high across the industry, particularly in automotive finance, but Citi’s exposure remains relatively low and is driven by a retail base with a robust credit profile. Raghavan reaffirms the company’s trust in the overall credit quality and emphasizes that its padded reserves are currently preventative.

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This risk-aware stance is triggered by the continued burden of high interest rates and inflation on some consumer segments. Citi will join to strengthen its credit buffer while maintaining a careful optimistic view of the broader health of US consumers. CEO Jane Fraser previously said that credit losses are increasing, but remain within manageable thresholds that coincides with the slowly normalized credit cycle.

Citigroup Inc. (NYSE:C) is a global financial services company that provides banking, investment and asset management solutions to individuals, businesses and governments around the world.

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