Hamna Asim
1 min read
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Citigroup Inc. (NYSE:C) is one of the best Goldman Sachs bank stocks. Citigroup is setting aside more money to prepare for the possibility that some customers may have trouble repaying their loans. Speaking at a Morgan Stanley conference, Citi’s Head of Banking, Vis Raghavan, said credit costs will likely rise by a few hundred million dollars this quarter, more than analysts had expected.
The move highlights Citi’s dynamic provisioning strategy and its balance sheet discipline. While delinquencies have edged higher across the industry, particularly in auto finance, Citi’s exposure remains relatively low, driven by a retail base with robust credit profiles. Raghavan reaffirmed confidence in the firm’s overall credit quality, highlighting that currently padded reserves are precautionary.
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This risk-aware stance comes in the wake of high interest rates and inflation continuing to strain some consumer segments. Citi joins peers in reinforcing credit buffers while maintaining a cautiously optimistic view on the broader health of the US consumer. CEO Jane Fraser previously mentioned that credit losses, though increasing, remain within manageable thresholds consistent with a slowly normalizing credit cycle.
Citigroup Inc. (NYSE:C) is a global financial services firm that provides banking, investment, and wealth management solutions to individuals, businesses, and governments around the world.
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