Citigroup: Q2 Will Be Bad, But The Bad News Is Already Baked In
About: Citigroup Inc. (C), Includes: WFC
by: Jeff Anderson
Summary
The pandemic is giving banks an incentive to throw in the “kitchen sink,” and ramp up loan loss provisions to boost future earnings.
After Citigroup took a massive $5B loan loss provision in Q1, you should expect even larger provisions in Q2.
In addition to loan loss provisions, the pandemic will hurt other components of C's income for some time.
Most of the bad news is probably already baked into the price.
I spent this weekend reading through Citigroup's (C) 2019 10-K looking to understand what risks C faces with this ongoing pandemic. It was over 300 pages no less, and felt like “cruel and
