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...For more than a decade Citi has operated with two divisions: ICG and a consumer-focused division that includes Citi’s retail bank, credit cards and wealth management....
...Several of the bank’s businesses — including credit cards and corporate transaction services — did better than expected in a quarter that many thought would be marred by the upheaval of the restructuring...
...“The level of debt has been rising a lot, and credit card loans carry the highest rates of most consumer debt,” said Robert Sockin, a global economist at Citi....
...All LOBs, including the other two—Personal Banking (29%, mostly cards) and Global Wealth (11%)—should have more clarity from better 2024 disclosure....
...By comparison, loan loss provisions dropped at Citi, JPMorgan and Wells Fargo, by 33 per cent, 32 per cent and 29 per cent, respectively, from their previous quarters....
...There were limited signs of those cracks in Citi’s third-quarter results. Revenue from credit cards that Citi issues in the name of Costco and other chain retailers rose 21 per cent from a year ago....
...Spending on the bank’s credit cards helped raise revenue in its consumer banking division by 12 per cent, while corporate spending helped push up revenue in Citi’s treasury services division, which manages...
...Credit card spending at retailers dropped nearly 11 per cent last month, Citi reported this week, based on data from the bank’s own card customers....
...Citi....
...The current government will be hoping that this bubbling imbroglio remains just this side of collapse until the election, which is possible, but a new government won’t have extra cards to play....
...Citi was also a leader on a $310mn loan to Sunbit, a buy-now, pay-later company that specialises in auto repair shops and dentist offices....
...BofA, Citi, JPMorgan and Wells will be the first of the large banks to disclose their results for the final three months of 2023 on January 12....
...Overall, Citi’s chief executive Jane Fraser told analysts that she expected inflation to continue to fall and the economic outlook to remain positive....
...unable to repay their growing credit card debts....
...DIANE GLOSSMAN: You had on the one hand Citi that had a huge business around the globe, known to be an innovator in technology and credit card....
...repay their growing credit card debts....
...Worrisomely, this pertains to Virgin’s credit card business as signs of consumer stress appear. In this way, boosting loan loss reserves is sensible. Shareholders lose out....
...Revenue from Citi’s retail credit card business rose 27 per cent in the period, helping the bank’s overall profits beat Wall Street’s expectations....
...Barclays wants its US cards business to hit $40bn by 2026, from $32bn last year, and for retail to grow to 20 per cent of the portfolio from 15 per cent currently....
...Credit card transactions rose 8 per cent in the quarter at Citi. Both JPMorgan and Wells Fargo lowered, from the previous quarter, the amount of money they put away for potential loan losses....
...And while weekly data from the Fed has shown credit card borrowing by consumers is still growing, albeit at a slower pace, corporate borrowing has fallen in the past six months....
...Credit cards are the biggest source of pain for a number of the banks. JPMorgan’s card loan charge-offs totalled $1.1bn in the quarter, analysts estimate, up from $600mn in the same period a year ago....
...“The fiscal adjustment is aggressive, though risks surrounding execution remain in a difficult political situation,” said analysts at Citi....
...RedBird IMI has been co-operating with UK officials, reassuring them the Emirati investor would play a passive role, but is holding its cards close to its chest on how it plans to manage the approval process...
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