Citigroup joined the growing list of US major banks reporting sharply lower profit figures. It recorded a 46 percent fall in net profit in its first quarter 2020 results, from US$4.5 billion in the first quarter of 2019 to $2.5 billion a year later, after increasing loan loss reserves by $4.9 billion.

Revenues increased 12 percent from the prior-year period, primarily reflecting higher revenues in fixed income markets and equity markets, and the benefit of mark-to-market gains on loan hedges in the corporate lending portfolio.

Securities Services revenues of $645 million increased 1 percent on a reported basis and 5 percent in constant dollars, reflecting higher client activity and deposit volumes partially offset by lower spreads.

The bank says it is operating from a position of strength in terms of capital, liquidity and balance sheet.

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.

"COVID-19 is a public health crisis with severe economic ramifications. All of the work we have done in recent years has put us in a very strong position from a capital, liquidity and balance sheet perspective.

"While no one knows the severity or longevity of the virus' impact on the global economy, we have the resources we need to serve our clients without jeopardizing our safety and soundness.

"I want to thank our 200,000 people around the world who have had to work differently but have brought their same dedication and pride to their jobs each and every day. They have supported our clients, our communities and each other and I could not be prouder of them."

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Citigroup joined the growing list of US major banks reporting sharply lower profit figures. It recorded a 46 percent fall in net profit in its first quarter 2020 results, from US$4.5 billion in the first quarter of 2019 to $2.5 billion a year later, after increasing loan loss reserves by $4.9 billion.

Revenues increased 12 percent from the prior-year period, primarily reflecting higher revenues in fixed income markets and equity markets, and the benefit of mark-to-market gains on loan hedges in the corporate lending portfolio.

Securities Services revenues of $645 million increased 1 percent on a reported basis and 5 percent in constant dollars, reflecting higher client activity and deposit volumes partially offset by lower spreads.

The bank says it is operating from a position of strength in terms of capital, liquidity and balance sheet.

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.

"COVID-19 is a public health crisis with severe economic ramifications. All of the work we have done in recent years has put us in a very strong position from a capital, liquidity and balance sheet perspective.

"While no one knows the severity or longevity of the virus' impact on the global economy, we have the resources we need to serve our clients without jeopardizing our safety and soundness.

"I want to thank our 200,000 people around the world who have had to work differently but have brought their same dedication and pride to their jobs each and every day. They have supported our clients, our communities and each other and I could not be prouder of them."