Citi to provide potential bad loans for US economic concerns

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Citigroup is preparing to increase the provisions for potential bad loans of potential bad loans, as a sign of increasing financial stress between US consumers and enterprises.

“We expect a few hundred million dollars compared to the last quarter (and),” said the head of Citi’s banking in Morgan Stanley on Tuesday.

Increase comes between these concerns Donald Trump’s tariffs The United States will slow down economic growth or even cause a decline. Levies can also increase the prices of some products and the prices of goods imported from China by hitting consumers.

In the United States, the consumant feeling worried that the growing Americans are worried about the financial well-being. However, the two largest economies in the world, the United States and China, worked to sign a contract to solve trade wars.

In May, consumer confidence rose to 98 and rose to 98 in April, although Trump has read below November 110 Presidential elections.

Raghavan said that a credit card loan book is a higher credit scores to direct customers. Citi is one of the largest retailers in the United States and has received a $ 2.7 billion provision for loan loss in the previous quarter.

The former JPMorgan Banker added that the bank’s corporate clients’ convinces incredibly convinces, with 80 percent of the exposure to high-ranking issuers. “

In other banks, managers said that despite the uncertainty, the uncertainty of the US consumer activity to imports from many countries, it will be surprisingly good.

“We hope that this is a kind of slow, but we hope that this is not very meaningful,” Wells Fargo CEO Judge Scharf told the Bernstein Conference in New York two weeks ago.

“Both enterprises and consumers are relatively strong in this period. So it is a very strange time. It is very difficult to see any trend with any tendency.”

At the end of the last quarter, the ratio of unique lenders, unprofitable loans on credit card charges, previously rose above Covid-19 spread.