Citi releases $2bn from loan-loss reserves as macro outlook brightens
Total allowances for loan losses are 95% larger than at end-2019
Having put aside over $10 billion of earnings over the first nine months of 2020 to cover expected loan defaults caused by the coronavirus crisis, Citi reversed course in the last quarter and released $1.8 billion back into income as its economic forecast improved.
The reserve release was equal to 11% of Q4 revenues. It almost entirely offset the impact of net credit losses, which totalled $1.5 billion for Q4, and a provision build for unfunded credit commitments of $352 million.
Total
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