Citi 1Q profit falls 46% as virus hits US, global customers

Banking conglomerate Citigroup says first-quarter profit dropped 46 per cent as it set aside billions to cover potentially bad loans.

Citi set aside USD7.03 billion for loan losses this quarter, up from USD 1.98 billion in the same period a year earlier.

Citi is a large credit card issuer, focused primarily on consumers who keep and revolve a balance.

Those customers are now at greater risk of default because many of them have lost their jobs.

Citi also has a large international banking franchise and lends to companies around the globe, and some could default on their loans as business dries up.