- As toll crosses 100, Trump puts Hurricane Helene at election center stage
- US Fed Chair sees 'further disinflation' in economy
- Epic Games sues Google and Samsung over app store
- Officials see no shortages from likely US port strike
- UK families of Gaza hostages warn Lebanon attack 'takes focus away'
- Shares in Stellantis, Aston Martin skid on profit warnings
- Dali prints found in London garage sold at auction
- ECB chief backs bank mergers amid UniCredit, Commerzbank talk
- China stocks soar on stimulus, but US and Europe retreat
- 100 dead in storm Helene damage, flooding across US southeast
- China stocks soar on stimulus, Europe slides on automaker woes
- German antitrust watchdog steps up monitoring of Microsoft
- Nepal's urban poor count cost of 'nightmare' floods
- E.Guinea, Gabon clash at ICJ over oil-rich islands
- New blow for UK's Starmer as growth data disappoints
- China's top banks to tweak mortgage rates to boost housing market
- Muslim women break taboos navigating east London's waterways
- Nepal dam-building spree powers electric vehicle boom
- More than 60 dead from storm Helene as rescue, cleanup efforts grow
- Dozens missing, 9 dead in migrant boat wreck off Spanish Canaries
- Death toll from Hurricane John hits eight in Mexico
- Storm Helene's toll rises as rescue and cleanup efforts gain pace
- SpaceX launches mission to return stranded astronauts
- Storm Helene kills 44, threatens more 'catastrophic' flooding as cleanup begins
- SpaceX set to launch mission to return stranded astronauts
- Storm Helene kills 44, threatens more 'catastrophic' flooding
- Boeing strike grinds on as latest talks fail to reach agreement
- Iran 'news' sites, hackers target Trump ahead of US election
- US ports brace for potential dockworkers strike
- Japan's speedy, spotless Shinkansen bullet trains turn 60
- US hurricane deaths rise to 44, fears of more 'catastrophic' flooding
- Global stocks mostly rise, cheering Beijing stimulus
- Europe en route for Moon with new simulator, says astronaut Pesquet
- Fireworks forecast if comet survives risky Sun flypast
- Argentina judge orders dictionary to delete pejorative definition of 'Jewish'
- Global stocks rise on rate hopes, Beijing stimulus
- S.African woman turns 118, among the oldest in the world
- UK clears $4 bn AI partnership between Amazon, Anthropic
- Barca fans barred from Champions League away game over racist banner
- Chinese stocks extend surge, Europe higher on Beijing stimulus
- Pope says Church must 'seek forgiveness' for child sexual abuse
- China caps week of 'bazooka' stimulus for ailing economy with rate cut
- Cuts, cash, credit: China bids to jumpstart flagging economy
- France's debt weighs heavier ahead of budget debate
- Iran treads carefully, backing Hezbollah while avoiding war
- Return to sender: waste stranded at sea stirs toxic dispute
- 'Broken' news industry faces uncertain future
- On remote Greek island, migratory birds offer climate clues
- Taken from mother by nuns, victim seeks answers as pope visits Belgium
- China cuts amount banks hold in reserve to boost lending
RBGPF | 7.18% | 64.75 | $ | |
RYCEF | 0.14% | 7.05 | $ | |
CMSC | -0.21% | 24.72 | $ | |
BCC | -0.36% | 140.98 | $ | |
SCS | 2.52% | 13.49 | $ | |
GSK | 0.42% | 40.88 | $ | |
NGG | -0.09% | 69.67 | $ | |
CMSD | -1.21% | 24.78 | $ | |
RIO | -0.08% | 71.17 | $ | |
RELX | -0.21% | 47.46 | $ | |
BCE | -1.12% | 34.8 | $ | |
JRI | 0.66% | 13.67 | $ | |
VOD | -0.7% | 10.02 | $ | |
BTI | -0.71% | 36.58 | $ | |
AZN | 0.37% | 77.91 | $ | |
BP | -0.1% | 31.39 | $ |
Citigroup sets aside $1.9 bn for Russia as US banks report mixed results
Citigroup said Thursday it set aside $1.9 billion in reserves due to Russia's invasion of Ukraine as large US banks reported mixed results amid a backdrop of geopolitical upheaval and fast-changing monetary policy.
About $1 billion in the Citi reserves are for direct exposure to Russia, while the $900 million relate to broader economic risks following the invasion, Citi Chief Financial Officer Mark Mason said on a conference call with reporters.
Since the end of 2021, Citi has reduced its overall exposure to Russia from $9.8 billion to $7.8 billion, Mason said.
Citi was one of several banks to report lower quarterly earnings compared with the year-ago period, when results were boosted by the release of reserves taken at the outset of the Covid-19 pandemic.
Both Goldman Sachs and Wells Fargo also reported lower profits. Bankers have said US consumers remain on solid footing, but have cited inflation and the Russian invasion of Ukraine as worrisome factors that will likely slow the economy and could ultimately result in a recession.
"There's somewhat of a wait and see how some of this plays out," Mason said of the overall environment.
"Clients are worried about inflation," Mason said. "They're looking at the impacts from rising rates," he added, noting that supply chain woes exacerbated by the Russian invasion.
Citi reported a 46 percent decline in first-quarter profits to $4.3 billion, while revenues dipped two percent to $19.2 billion.
Citigroup's earnings were also dragged lower by increased expenses, while its banking operations had a mixed performance.
Chief Executive Jane Fraser cited a difficult geopolitical and macro environment as a factor in weaker investment banking results, while pointing to trade loans and cross-border transactions as areas of strength.
Citi also scored higher net interest income, benefiting from the Federal Reserve's shift in monetary policy.
At Goldman Sachs, profits came in $3.8 billion, down 43 percent from the year-ago period on a 27 percent drop in revenues to $12.9 billion.
Goldman sustained a big drop in revenues from asset management and equity and debt underwriting, offset by a strong activity in some trading divisions amid market volatility.
Wells Fargo, meanwhile, reported profits of $3.7 billion, down 20.8 percent from the 2021 period. Revenues fell 5.1 percent to $17.6 billion.
Wells Fargo reported broad-based loan growth, but suffered a big drop in mortgage banking income, reflecting a rising interest rate environment.
Thursday's deluge of earnings reports comes a day after JPMorgan Chase also reported lower profits. Bankers have said the US economy remains on solid footing, while warning of increased recession risk due to the Ukraine invasion, rising inflation and uncertainty connected to the shift in Fed interest rate policy.
Wells Fargo Chief Executive Charlie Scharf echoed that tone.
"Our internal indicators continue to point towards the strength of our customers' financial position, but the Federal Reserve has made it clear that it will take actions necessary to reduce inflation and this will certainly reduce economic growth," Scharf said. "In addition, the war in Ukraine adds additional risk to the downside."
Shares of Citi rose 2.2 percent to $51.23 in morning trading, while Goldman Sachs gained 0.5 percent to $323.48. Wells Fargo slumped 5.5 percent to $45.86
P.Schmidt--CPN